Net Pix Shorts Digital Media Limited IPO

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1. Net Pix Shorts Digital Media is a technology-based entertainment company operating in the niche segment of online short film contents and publishing the same on various digital online portals and OTT platforms.

2. They started their online content distribution through the internationally renowned ‘YouTube’ portal and their channel – “Net Pix Shorts” went live on January 08, 2018. Currently, they have released 10 titles consisting of 12 videos on their YouTube channel aggregating to 154.94 minutes of content, which has received approximately 3,10,72,405 aggregate views as on September 05, 2020.

3. As of the date of this Draft Prospectus, they have 8 short films that are under production aggregating to approximately 155.84 minutes of content. Besides, some of the videos are also uploaded on various other digital online portals like Hungama Play, Sony Liv, Mx Player, Shorts TV, and Hotstar, either directly or through our media partners.

4. They have recently launched their own music channel on YouTube – ‘Net Pix Raw Music’ which went live August 14, 2020. The idea behind the music channel is to invite new and young musicians to showcase their talents on a global platform, where Net Pix offer them an online platform through its channel partners and OTT platform arrangements. As a newly launched channel, they have uploaded four (4) music videos aggregating to 15.70 minutes of content and are currently in the process to add more music content to this channel.

5. The contents that are being published over digital online portals and OTT platforms are either created by them i.e. by their in-house production or the same may be acquired through outright purchase or through the syndicated method.

Revenue Model:

1. The success of videos on Youtube is primarily measured in terms of the number of views recorded by the online platform which in turn is the criterion for the revenue from such video. The higher the no. of views, the higher the revenues generated.

2. For the OTT platform they have different criteria and rates for calculating the revenues per view.

3. Besides, the above, they also receive and broadcast advertisements in between the video, and the revenue of such advertisements are shared between the online channel partners and the Company.

Objects of the Net Pix Shorts Digital Media Limited IPO:

The Objects of the Net Issue is to raise funds for: (a) Acquisition of workshop & Godown and Writer’s Lounge on a long term lease basis. (b) Further Augment our Digital Media Content Library. (c) General Corporate Purpose.

Net Pix Shorts Digital Media Limited IPO Details:

Open Date: Nov 18 2020
Close Date: Nov 23 2020
Total Shares: 900000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 2.70 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 30 Per Equity Share
Listing At: BSE SME
Listing Date: Nov 30 2020

Promoters And Management:

(i) Mr. Danish Zakaria Aghadi, aged 27 years is the Promoter and Managing Director of our Company. He is an entrepreneur with primary interests in the real estate and entertainment fields and has over 7 years of business experience. He has completed a certificate course in Acting and Dance from Actor Prepares - The School for Actor (Anupam Kher’s) in 2016. Further, he has attended various acting and theatre workshops and has developed his skill as an actor and filmmaker. He is also actively involved in theatres, TV commercial, Short Films, and Films. (ii) Ms. Nazish Furniturewala, aged 19 years is the Non-Executive Non-Independent Director of the Company. She was one of the first Directors of the Company. She is an undergraduate. She has completed a Diploma in Scriptwriting from Actor Prepares - The School for Actor (Anupam Kher’s). As the Non-Executive Director of our Company, she provides us with her knowledge and inputs in finalizing the stories and ideas for our content and also assists in the scripting of some of the short films.

Financials of Net Pix Shorts Digital Media Limited IPO:

In the DRHP, only 1 year i.e. 2019-20 financials are given as the company has just formed last year after converting from proprietorship firm. (i) Revenue = 18 lakh (ii) Expenses = 15 lakh (iii) PAT = 2.28 lakh (iv) Outstanding shares = 16.2 lakh (v) EPS = 0.14 (vi) P/E = 214x.

Comparison With Peers:

As per offer documents, company has no listed peers to compare with.

Recommendation on Net Pix Shorts Digital Media Limited IPO:

Review and Recommendation of InvestorZone are 2/10 The company has shown only one year of performance, so it is very difficult to predict the exact performance. The asking P/E is 214x, which is very high. Out of 2.07 Crores company is raising, 0.58 Crores is going to Lead managers. The industry in which the company is working is highly competitive. The company does not have any moat. Anyone with good writers and a production team can make content for OTT platforms.

Lead Manager of Net Pix Shorts Digital Media Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of Net Pix Shorts Digital Media Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

1402, Z A Towers, Zohra Aghadi, Yari Road, Versova, Andheri West, Mumbai – 400 061

Discussion on Net Pix Shorts Digital Media Limited IPO:

    Last year company value was rs. 10 and this year rs.30. 3x appreciation in value is too much in a single year.