Baweja Studios Limited IPO

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The operations and strategy of this company, which is actively involved in the motion picture production industry. Here’s a detailed explanation:

  1. Current Production Status and Future Plans: As of the date of the Draft Red Herring Prospectus, this company has produced over 22 projects, with 6 films under production and 7 in the pre-production stages. There is an anticipation of releasing the under-production projects in the next fiscal year. Additionally, the company is engaged in research and development for various other projects.
  2. Nature of Business: This company is a technology-based content production house specializing in commercial films across various formats. The focus is on innovative storytelling and leveraging technological advancements in film production.
  3. Business Processes:
    • Research & Development: This involves the development of scripts and content creation.
    • End-to-End Production: Handling all aspects of film production from start to finish.
    • Intellectual Property Creation and Monetization: Focusing on creating and monetizing rights associated with the content.
  4. Track Record: The company is recognized as one of the key players in the media and entertainment sector, known for producing high-quality content.
  5. Content Sourcing and Selection Process: The approach involves sourcing content through various means like in-house story developments, content acquisition, remake rights, or book adaptations. A rigorous selection process is followed before greenlighting a project for production.
  6. Production Models:
    • Full Production: Here, their company handles all production activities, retaining all rights and responsibilities for marketing, promotion, distribution, etc., but also bears all associated risks and costs.
    • Co-Production: In this model, their company acts as line producers, producing movies and delivering them to clients for a pre-agreed fee. This model involves collaborative efforts with co-producers for distribution, potentially including profit-sharing arrangements. It reduces risk as financing is generally managed by the co-producers.
  7. Diversification in Content: The company has diversified its portfolio to include digital films, web series, animation films, Punjabi films, advertisement films, and music videos. “Baweja” is positioned as a long-standing brand committed to being an industry leader in production quality across all formats.
  8. Promotion of New Talent: Led by Harman Baweja’s philosophy, the company focuses on promoting new talent across various facets of the Indian entertainment industry.
  9. Collaborations and Innovations: Their company collaborates with top names in the industry and international award-winning studios for project-wise collaborations, focusing on groundbreaking movies and technical innovations.
  10. Secondary Objectives: Beyond film production, the company aims to amplify film IPs through various derivatives like remakes, sequels, prequels, stage plays, web series, television productions, documentaries, electronic books, comic books, print publications, and games. This also includes merchandising and adaptations across different formats and media.
  11. Infrastructure and Team: The company is self-sufficient with its own facilities and equipment. It boasts strong relationships with a pool of talented writers, directors, production teams, post-production studios, and marketing personnel, ensuring cost-effective and quality-conscious project delivery.
  12. In-House Creative and Production Team: A combination of an experienced creative producer’s team and a production team forms the backbone of the company, delivering high-quality and cost-effective productions.

In summary, Their company is a well-established, diversified content production house with a focus on technology-driven filmmaking, promoting new talents, and innovative storytelling. It operates under various production models, effectively managing risks and focusing on intellectual property creation and monetization, while maintaining a strong commitment to quality and cost-effectiveness.

Objects of the Baweja Studios Limited IPO:

The company proposes to utilize the net proceeds from the Offer towards funding the following objects and achieve the benefits of listing on NSE Emerge platform of National Stock Exchange of India Limited: i. To meet the working capital requirements; ii. General corporate purposes

Baweja Studios Limited IPO Details:

Open Date: Jan 29 2024
Close Date: Feb 01 2024
Total Shares: 5,400,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 97.20 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 170 - 180 Per Equity Share
Listing At: NSE Emerge
Listing Date: Feb 06 2024

Promoters And Management:

Harman Baweja, aged 42, is the Chairman and Managing Director of the Company. He is one of the Promoters of the Company. He has completed first year of Bachelor of Commerce from Mithibai College of Arts, Chauhan Institute of Science & Amrutben Jivanlal College of Commerce and Economics and has done his Second year of Bachelor of Commerce from Distance Learning from University of Mumbai. He has over 20 years of experience in the field of filmmaking. Paramjit Harjaspal Baweja, aged 67, is a Executive Director of the Company. She is also one of the Promoters of the Company. She has been associated with the Company since its incorporation as a Director and Promoter. She has experience over 20 years in the film industry. She has been a producer in a few films in bollywood film industry. Rowena Baweja, aged 41, is the Non-Executive Director of the Company. She is one of the Promoters of the Company. She has completed her Higher Secondary Education. She has over 10 years of experience in the field of every aspect of Filmmaking in Baweja Studios Limited.

Financials of Baweja Studios Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 1,945 4,071 7,379 3,866
Other Income 10 26 249 24
Total Revenue 1,954 4,097 7,628 3,890
Operational expenses 524 3,492 6,261 3,137
Employees Benefit Expenses 14 19 57 29
Loss on sale of investment 52 4 0 0
Preliminary expenses 0 12 8 0
Other Expenses 195 122 151 94
EBITDA 1,168 448 1,151 631
Depreciation & Amortisation 3 11 33 26
Finance cost 8 28 49 24
EBIT 1,165 437 1,119 605
OPM (%) 59.79% 10.93% 15.09% 16.23%
PBT 1158 409 1070 581
Tax 393 133 273 146
PAT 765 276 797 435
NPM (%) 39.13% 6.74% 10.45% 11.19%
No.of Shares 184.27 184.27 184.27 184.27
EPS 4.14 1.49 4.32 2.36

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Baweja Studios Limited 74 8 4.32 41.6 180 332
Shemaroo Entertainment Ltd 557 10 3.44 51.6 178 485
Eros International Media Ltd 681 -120 -12.15 N/A 23.6 226
Zee Entertainment Enterprises Ltd 8,088 48 0.50 60.6 155 14,864
Mukta Arts Ltd 163 -19 -8.30 N/A 92.6 209
Vels Film International Ltd 60 0.5 1.12 239.0 98 126
* All the data is as per FY23.

Recommendation on Baweja Studios Limited IPO:

Lead Manager of Baweja Studios Limited IPO:

  1. Fedex Securities Limited

Registrar of Baweja Studios Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Baweja Studios Limited Flat No. C/65, Ashirwad, 2nd Cross Lane, Lokhandwala Complex, Andheri, Mumbai -400053 Phone: +91 22 3590 1403 Email: Website

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