Bright Outdoor Media Limited IPO

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i. Bright Outdoor Media is engaged in the business of providing advertising services offering advertising media services consisting of Out of Home (OOH) media services. Their array of service hoardings includes Railway boards, Railway panels, Transfer stickers, Cinema slides, Promos, full train, Bus panels, Full Bus painting, Mobile sign truck, Kiosks, Traffic Booth, Toll Naka, Gantry and Vinyl. Apart from Out-of- Home (OOH) Advertising and providing various novel communication solutions to clients, the Company also offers services assuring multicultural and ethnic Outdoor Advertising campaigns that engage audiences and achieve impact, for every creative need, idea and budget.

ii. Apart from business of providing advertising services, the Company is also engaged in real estate business which mainly includes sale and purchase of properties and also sharing the same on rental/leave and license basis.

iii. Their client domain mainly includes corporate clients operating in various business fields viz. Entertainment Industries, Construction, Education, Jewellery, Insurance, Financial service providers, Aviation, Government Organizations etc., thus providing them exposure to serve clients working in various industries and widening their exposure.

iv. The Company has been included in the World Book of Records, 2022 for receiving 2000 felicitations, 5000 awards internationally and owing 1000 clients in the field of entertainment industry, corporate sector and FMCG for 33 years. The Company has been felicitated with many awards such as “India’s No.1 Brand Award 2014” in India’s Best Outdoor Publicity Company Category by No 1 Brand Awards Council, “India’s No.1 Brand Award 2017” received from International Brand Consulting Corporation (IBC), USA for the year 2017-18, “Asia’s Most Trusted Brand Awards 2019” received in FY 2019-20 and India’s Best Brand of the year Awards, 2022 by Berkshire Corporate Awards, 2022.

v. Competitive Strengths

i. Accreditation with various awards.

ii. Own Inventory of Hoardings.

iii. Experience of our Promoters and senior management team

iv. Customer Satisfaction.

v. Repeat Customers.

 

Objects of the Bright Outdoor Media Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Prepayment/repayment of certain secured borrowings availed by the Company ii. Purchase of LED Hoardings iii. Funding working capital requirements iv. General corporate purposes.
DRHP of Bright Outdoor Media Limited IPO
RHP of Bright Outdoor Media Limited IPO

Bright Outdoor Media Limited IPO Details:

Open Date: Mar 14 2023
Close Date: Mar 17 2023
Total Shares: 3,800,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 55.48 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 146 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 27 2023

Promoters And Management:

i. Yogesh Jiwanlal Lakhani, aged 59 years, is the Promoter, Chairman and Managing Director of the Company. He has completed his SSC from University of Maharashtra State Board of Secondary Education, Poona in the year 1980 and Honorary Doctor of Philosophy from Royal American University in the year 2020. He has more than 43 years of experience in the advertisement industry. He has been awarded as Promising Entrepreneur of the year by Power Brands Leadership in the year 2012. He has received Certificate of Appreciation from Top 50 Indian Icon Awards, 2018. He is a winner of GIAA 2018 awards in the Category of Social Genius. He has also received World Icon Awards by Dushyant Corporation, 2019. He has been awarded Certificate of Excellence, in the year 2021 from the American University, USA. ii. Jagruti Yogesh Lakhani, aged 58 years, is the Promoter and Whole Time Director of the Company. She has completed her Bachelor of Commerce from University of Surat in the year 1984 and has more than 15 years of experience in the advertisement industry. She is involved in the overall administration and HR Management of the Company. iii. Ameet Kumar Vilaschandra Mehta, aged around 50 years is the Non-Executive Independent Director of the Company. He has completed Bachelor of Engineering from Pune University in the year 1993. He completed his International Trade Management from NMIMS in the year 1996. He holds Degree of Master of Business Administration from Leeds University Business School, United Kingdom in the year 2003. Subsequently he completed his Law (LLB) from Mumbai University in the year 2003. He also completed a professional course in Mergers and Acquisitions from London Business School in the year 2010. He is having 27 years of experience in the field of International trade, business merger, acquisition and law.

Financials of Bright Outdoor Media Limited IPO:

Particulars ( In Crore ) 6MFY23 2022 2021 2020
Revenue from Operations 44 50 24 70
Other Income 0.21 0.43 0.9 0.96
Total Revenue 45 50 24 71
Direct Expenses 34 39 15 59
Change in Inventories - - - -
Employee Benefits Expense 1 1 1 2
Other Expenses 2 3 2 2
EBITDA 7 7 5 7
Depreciation & Amortisation 0.05 0.18 0.19 0.20
Finance Cost 1 3 4 4
EBIT 7 6 5 6
OPM (%) 15.72% 13.74% 22.56% 10.04%
PBT 5 3 1 2
Taxes 1 0.98 0.36 0.53
PAT 4 2 1 1
NPM (%) 9.29% 5.09% 4.34% 2.39%
No.of Shares 1 1 1 1
EPS 3.01 1.86 0.77 1.22
P/E 48.45 78.45 187.91 118.75

Comparison With Peers:

There are no listed companies in India which are engaged in the similar business.

Recommendation on Bright Outdoor Media Limited IPO:

Review and Recommendation of Bright Outdoor Media Limited IPO by IZ team is 3/10 1. The company commenced business in 1980 as an outdoor media company. Today it is one of the leading Out of Home (OOH) media organizations in India and is spreading its footprint rapidly across the country. Its medium is cost – effective and long lasting, and delivers reach and the frequency. 2. BRIGHT has over 100 people in 4 offices located across the country. BRIGHT commands over 1500 Billboards & other monopoly media’s. • BRIGHT has 8000 sq.ft head office in Mumbai. 3. 1500+ corporate and other clients and More than 8000+movies OOH launch. 4. The revenue was ~70 Crores in FY20, however, due to Covid-19 pandemic the revenue dipped to 24 Crores in Fy21 and ~50 Crores in Fy22. 5. Business has very low Gross Margins of average around 23%. 6. PAT in Fy20 was around 1.71 Crores which has increased to 2.64 Crores in Fy22. 7. Bright Outdoor Media has very high receivables. In Fy22, out of total sales of ~50 Crores, ~36 Crores is the receivables. 8. Last 3 years average PAT is 1.81 Crores and total shares outstanding after IPO will be 1.392, so EPS would be 1.3 and P/E would be 112. If you annualise the FY23 6M earnings the EPS would be 5.74 and P/E would be 25x. But this 6MFy23 earnings looks cooked as suddenly the PAT margins have shoot from 5.74% in Fy22 to 9.5% in Fy23. 9. Very high debt of 40 Crores as on 31.03.2022 with equity of ~36 Crores. So, D/E is greater than 1. 10. Business has very low ROE of 7.8% and ROCE of 8.22% in Fy22. In India WACC is around 15%, and company is generating ROCE of 8.22%, that means company is not able to make enough money to cover the even the cost.

Lead Manager of Bright Outdoor Media Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Bright Outdoor Media Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Bright Outdoor Media Limited 801, 8th Floor, Crescent Tower, Near Morya House, Fame Infinity Mall, Off New Link Road, Andheri (West), Mumbai 400 053 Phone: 022 – 6714 0000 Email: investor@brightoutdoor.com Website: http://www.brightoutdoor.com/

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