Shemaroo Entertainment Brings In An IPO
Priyanka Kumari / 10 Jul 2013
The net proceeds raised by the company through this public issue will be utilised to fund its working capital requirement.
Shemaroo Entertainment (SEL), a media and entertainment company, has proposed to raise Rs 120 crore through its public issue. It intends to list its equity shares on the bourses. The issue will be completely based on the book-building method and the lead managers are YES Bank and ICICI Securities.
The Mumbai-based company SEL was founded in the year 1962. Initially, the company commenced its operations as a book circulating library. Currently, SEL runs a big media content house in the country. It is engaged in the business of film production and content distribution with complete ownership rights. It has produced many bollywood films like Ishqiya, Mere Baap Pehle Aap, Manorama six feet under etc. SEL has a big content library which includes over 2800 Hindi and other regional languages (Bengali, Punjabi, Marathi, Gujarati) film and non-film contents.
Further, due to an increase in income from broadcast syndication, new media (includes income from DTH, IPTV etc.) and distribution of content through DVDs and VCDs, the company's revenue grew by 15% to Rs 216.09 crore in FY13 on a YoY basis. Total expenditure for company increased to Rs 157.38 crore in FY13, up by 16% from FY12, whereas, it remained unchanged as a percentage of overall revenue from previous year. The other expenses declined in this period by 9% to Rs 13.74 crore.
The increase in sales has resulted in a boost in EBITDA by 14% in the said period, which reached Rs 58.71 crore. Bottomline for SEL stood at Rs 24.66 crore in FY13, showing a growth of 14% on YoY basis. Moreover, the topline CAGR (for 3 years FY11-FY13) for the company stood at 10.44% and showed net profit of 12.51% CAGR for the same period.
The net proceeds raised by the company through this public issue will be utilised to fund its working capital requirement. Rs 106 crore will be used to fulfill its capital requirement and the rest will be used to meet the general corporate expenses.
At present, SEL has not disclosed the issue price, issue quantity and bid lot size. We therefore cannot take a call on subscribing to this issue. We will keep you updated as and when further issue details are disclosed.
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