Inspire Films Limited IPO - Review, Valuation, Date & GMP

Inspire Films Limited - Complete Overview

Founded in 2012, Inspire Films Limited is actively involved in the creation, production, distribution, and exhibition of television and digital content across various broadcasting channels, applications, and digital platforms. Additionally, the company engages in content writing, production, as well as the sale and purchase of content rights.

The company currently operates within three distinct business verticals:

TV - Hindi GEC (General Entertainment Channels): This involves content creation for linear broadcast channels like Star Plus, Star Bharat, Colors TV, Zee TV, Sony, Dangal, Shemaroo, and others. Typical contracts in this segment range from one year with 260 episodes (aired five days a week) to one year with 52-156 episodes (aired one to three days a week). These contracts are often renewed annually based on the performance of the shows. Each episode includes commercial advertisements and spans a duration of 30 to 60 minutes.

Digital Content and Platforms (OTT): This pertains to content created for popular platforms such as Netflix, Amazon, Sony Liv, MX Player, Disney+Hotstar, Voot, Zee5, and more. Contracts for OTT typically involve 8 to 10 episodes of 45 to 60 minutes each or 25 to 60 episodes of 22-25 minutes each. These contracts may extend to multiple seasons based on the popularity of the content.

Regional Content: Inspire Films produces content tailored for regional language channels across various regions, including Telugu, Tamil, Malayalam, Bengali, Marathi, among others. The same models mentioned above apply in a similar manner within the regional content space.

To date, the company has successfully produced over 10,000 episodes for a wide array of broadcasters, OTT platforms, applications, and distributors. 

These shows encompass a diverse range of genres, including dramas, thrillers, supernatural tales, mythological stories, period dramas, horrors, romantic comedies, youth content, kids' programming, comedy, and unscripted content, such as sports, musicals, fashion, and lifestyle programs.

 

 

What does the company do?

Inspire Films Limited is involved in the creation, production, distribution, and presentation of television and digital content.

 

IPO Overview 

The Inspire Films Limited IPO date is slated to be open for subscription from September 25, 2023, to September 27, 2023. This SME IPO follows the Book Built Issue format and is anticipated to be listed on NSE SME on October 6, 2023.

Inspire Films Limited IPO price is fixed at the range between Rs.56 to Rs.59 per share. Each lot of this issue comprises 2000 shares, and retail investors are allowed to bid for a maximum of one lot only.

The registrar responsible for handling the IPO is Maashitla Securities Private Limited.

 

Inspire Films Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	25 September 2023
IPO Closing Date	27 September 2023
IPO Allotment Date	3 October 2023
Refund initiation	4 October 2023
IPO Listing Date	6 October 2023

 

Inspire Films Limited IPO Details

IPO Opening & Closing Date	25 September to 27 September 2023
Face value	Rs.10 per Share
Issue Price	Rs.56 to Rs.59 per Share
Lot Size	2000 Shares
Price of 1 lot	Rs.118,000
Issue Size	3,598,000 Shares (aggregating up to Rs. 21.23 Cr)
Offer for sale	NA
Fresh issue	3,598,000 Shares (aggregating up to Rs. 21.23 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Maashitla Securities Private Limited

 

Inspire Films Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Inspire Films Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	2849.54	3053.87	4159.88
Total Revenue	1942.47	3815.28	4884.82
PAT	-83.00	25.92	404.82
Net Worth	780.37	806.29	1311.22
Reserve & Surplus	779.37	805.29	1310.16
Total Borrowings	1025.55	359.95	836.85

 

Revenue bifurcation based on the business models

(Amount in Lakhs)

Particulars	FY 23	FY 22	FY 21
Intellectual Property Right Business Model	-	0.40	0.35
Commissioned Content Business Model	4,883.16	3,814.37	1,938.03
Total	4,883.16	3,814.77	1,938.39

 

Domestic Sale
State Name	FY 23	FY 22	FY 21
Maharashtra	4,190.66	3,814.37	1,938.03
Tamil Nadu	-	-	-
Total (A)	4,190.66	3,814.37	1,938.03
International Sale
Export Countries	FY 23	FY 22	FY 21
Singapore	680.00	0.40	0.35
Brunei	12.50	-	-
Total (B)	692.50	0.40	0.35
Grand Total (A+B)	4,883.16	3,814.77	1,938.39

 

Revenue from top ten customer

Financial Year 2022-23
Customer Name	Amount (Rs. In Lakhs)
MX Media Entertainment Pvt. Ltd.	680.00
Eve World Platform Pte. Ltd	12.50
Viacom Media Private Limited	1,238.96
Star India Private Limited	1,338.53
Novi Digital Entertainment Pvt. Ltd.	1,154.92
Enter10 Television Private Limited	386.62
Cinemakers Media Production LLP	71.60
Total	4,883.16

 

Financial Year 2021-22
Customer Name	Amount (Rs. In Lakhs)
Google Asia Pacific PTE Ltd.	0.40
Viacom Media Private Limited	742.09
Sony Pictures Network India Private Limited	1,199.90
Star India Private Limited	102.97
Enter10 Television Private Limited	1,769.39
Total	3,814.77

 

Financial Year 2020-21
Customer Name	Amount (Rs. In Lakhs)
Google Asia Pacific PTE Ltd	0.35
Viacom Media Private Limited	1,935.03
Kalinga Institute	3.00
Total	1,938.39

 

Objective of the Issue

The raised funds will be employed to achieve the following objectives:

• Covering the Company's working capital needs.
• Addressing general corporate requirements.
• Managing the expenses associated with the issue.

 

Promoters and Management of Inspire Films Limited

Beyond Dreams Entertainment Private Limited and Yash Arabinda Patnaik are the promoters of the company.

Pre-issue Promoter Shareholding	93.98%
Post-issue Promoter Shareholding	69.17%

 

Peer Comparison 

Below are the listed peers of Inspire Films Limited:

Company Name	CMP	EPS (Rs)	P/E Ratio
Inspire Films Limited	-	3,925	-
Balaji Telefilms Limited	64.20	3.85	13.10
Bodhi Tree Multimedia Limited	139.50	2.67	51.31
V R Films and Studios Limited	50.11	5.99	10.24

 

IPO's Valuations

With an IPO price range of Rs. 56 to Rs. 59 per share and an EPS of Rs. 3,925, the P/E ratio for the IPO valuation, considering the higher end of the issue price, is approximately 0.02.

 

Dividend Policy

According to the information provided in Inspire Films Limited's IPO DRHP, the company has not distributed any dividends in the past, and any potential future dividend payments will be contingent upon the company's financial performance.

 

IPO's Strengths 

• A seasoned and capable management team.
• A well-structured and dedicated marketing team.
• Established and successful operations with a demonstrated track record.
• Robust and enduring partnerships with broadcasters and channels.

 

IPO Weaknesses

• The company's success hinges on the preferences of its audience.
• The current promoters of the company are first-generation entrepreneurs.
• There are unresolved legal proceedings involving the company.
• Increased competition could lead to rising content costs.
• The Corporate Promoter of the company operates in a similar line of business.
• The majority of the company's revenue comes from the top four states/countries.
• The company experiences negative cash flows.
• The display of the company's shows relies on distributors, broadcasters, and TV channels.
• The company incurred losses in one of the three preceding financial years.
• Group companies have previously reported losses and may continue to do so.
• The company may not have complied with certain statutory provisions of the Companies Act.
• The company does not own the copyrights used in its regular business operations.
• The promoters' average cost of acquiring Equity Shares is lower than the issue price.

 

 

IPO GMP Today

Latest GMP of Inspire Films SME IPO is Rs. 30. 

 

Conclusion

Investing in the Inspire Films IPO could be a promising opportunity for those interested in the entertainment industry. The company is actively involved in content production across various formats and has established partnerships with brands to maintain steady revenue streams. Nevertheless, it's crucial to note that the company has experienced losses in the past. Therefore, it is strongly recommended to conduct a comprehensive analysis before considering participation in this offering.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the RHP.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.