Sunshine Pictures IPO sees strong retail demand on Day 1
As of close on August 18, the IPO received bids for 2,37,74,711 shares against 54,86,051 shares on offer
Sunshine Pictures Ltd.'s initial public offering (IPO) experienced strong retail demand on its first day, with an overall subscription of 4.33 times. Retail individual investors contributed significantly to this, subscribing 5.98 times against 27,43,023 shares offered, while non-institutional investors saw the highest response, subscribing 6.23 times overall.
QIBs, however, remained largely uninterested, subscribing only 0.03 times with just 45,346 shares received. The IPO, priced between ₹342–360, aims for a post-issue market capitalization of ₹1,121 crore. The total issue size is ₹282 crore, funded by a fresh issue of ₹173 crore and an offer for sale of ₹109 crore. Net proceeds will be used for working capital.
Analysts warn of the company's negative revenue, EBITDA, and PAT growth rates over the past three fiscal years, and caution that the expensive valuation may overestimate the impact of box office performance and content success uncertainty.
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