Sunshine Pictures IPO fully booked within 2 hrs of opening; should you bid?

Sunshine Pictures IPO review: Analysts at SBI Securities have recommended 'Avoid' on Sunshine Pictures IPO, while Master Capital Services sees a long-term investment opportunity.

Sunshine Pictures IPO review: Film and television producer-director Vipul Shah-promoted Sunshine Pictures Ltd’s IPO witnessed strong demand on the opening day, with the public issue fully subscribed within two hours of opening on Tuesday (August 18), according to NSE data.

 

As of 12:10 PM, the Sunshine Pictures IPO was subscribed 1.4 times. Retail investors led the demand, with their portion subscribed 2.1 times, while the quota reserved for non-institutional investors (NIIs) was subscribed 1.6 times.

 

Overall, investors had placed bids for 76,64,827 shares against the 54,86,051 shares on offer, data showed.  Sunshine Pictures IPO price band, lot size   The three-day IPO subscription window will conclude on August 20. The company has set the issue price band at ₹342 to ₹360 per share. The lot size for an application is 41 shares, and the minimum amount of investment required by a retail investor is ₹14,760, based on the upper price band.

 

 

At the upper end of the price band, Sunshine Pictures is valued at an implied post-issue market capitalisation of around ₹1,121 crore.  The ₹282 crore IPO comprises a fresh issue of 48 lakh equity shares and an offer for sale (OFS) of 30.37 lakh equity shares, taking the total offer size to 78.37 lakh shares. Under the OFS, promoters Vipul Amrutlal Shah and Shefali Vipul Shah are offloading shares. Vipul Shah will offload 20.31 lakh shares, while Shefali Shah will sell 10.06 lakh shares.

 

Sunshine Pictures is engaged in the business of production and distribution of films, web series and TV serials.

 

Sunshine Pictures review: Subscribe or Avoid? 

 

Analysts at SBI Securities have recommended 'Avoid' on Sunshine Pictures IPO, while Master Capital Services sees a long-term investment opportunity.

 

SBI Securities

 

SBI Securities said that its standalone production ‘The Kerala Story’, emerged as the highest return on investment blockbuster in 2023. Historically, the company has recorded negative revenue/ Ebitda/ PAT CAGR of 25.4 per cent/ 8.6 per cent/ 13.4 per cent, respectively, over the FY24-FY26 period, given the high uncertainty of project success and working capital requirements.

 

"While the company possesses a list of upcoming projects, the success of the same depends on audience acceptance and box office performance," the brokerage said. 

Sunshine Pictures financials

 

At the upper price band of ₹360, the issue is valued at FY26 P/E multiple of 27.8x based on post-issue capital. "We recommend investors Avoid the issue."

 

Master Capital Services

 

Master Capital Services said that the Indian Media & Entertainment industry is expected to grow at a 6 per cent CAGR, reaching approximately ₹3.30 trillion by 2028 from ₹2.78 trillion in 2025, driven by digital transformation, rising content consumption and technological innovation.

 

In this favourable industry environment, it said that Sunshine Pictures is positioned to benefit from the growing demand for diverse and digital-first content through its experience in film, television and web series production. Its technology-driven, data-led approach, strong relationships with studios and creative professionals, established content portfolio, Sunshine Music and Sunshine Digital (Originals) verticals, and pipeline of six films and two web series provide a platform to participate in the evolving Indian M&E industry.

 

"Investors may consider the IPO as a potential long-term investment opportunity," Master Capital Services said.   

 

Sunshine Pictures IPO GMP

 

In the unlisted market, Sunshine Pictures shares are commanding a decent premium. At last check, the shares were quoting at ₹433, implying a grey market premium (GMP) of ₹73, or 20.28 per cent, over the upper price band of ₹360.

 

Meanwhile, Sunshine Pictures has raised ₹84.64 crore from anchor investors by allotting 23,51,140 shares at ₹360 apiece. 

 

Of the issue, 50% is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for retail investors.

 

The equity shares will be listed on both BSE and NSE on August 25. GYR Capital Advisors Private Ltd is the book-running lead manager to the issue, while Bigshare Services Private Ltd is the registrar. 

  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.