Phantom Digital Effects Limited IPO

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i. Phantom Digital Effects is a creative VFX studio, specializing in Film, Web series, and Commercials. The company has delivered more than thousands of shots for Domestic and International feature films (Hollywood), Web Series & commercials in the past few years. Apart from working for film production and commercials, The Company periodically takes up subcontracts from larger visual effects studios as well.

ii. They are a Certified Trusted Partner Network (TPN) company, a full-fledged creative VFX studio, based in India with offices operating in US and Canada. The Company is not having any offices in US or Canada. Presently, they are operating in US and Canada through Agencies only for procuring orders.

iii. Phantom Digital provides high-end visual effects solutions for commercials, feature films, and Web series globally. Phantom Digital Effects Limited offers all sorts of creative VFX works, ranging from Final Compositing and Roto to creating 3D Elements, Photo real creatures and Environments, 3D, match move, and Animations.

Competitive Strength:

  • Well equipped with advanced technology.
  • Experienced Promoters and Technically Sound Operation Team.
  • Marque Clientele.

Objects of the Phantom Digital Effects Limited IPO:

The company intends to utilize the Net Fresh Issue Proceeds for the following Objects: 1) Capital Expenditure for Setting up of Studios. 2) General Corporate Expenses.

Phantom Digital Effects Limited IPO Details:

Open Date: Oct 12 2022
Close Date: Oct 14 2022
Total Shares: 3,063,600
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 29.10 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 91-95 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 25 2022

Promoters And Management:

Mr. Bejoy Arputharaj Sam Manohar, aged 39 years, is the Promoter Chairman & Managing Director of the Company. He holds a degree in Bachelor of Science in Computer Science from Kalinga University. He was originally appointed to the Board on February 2, 2016, as the Director of the Company. He has been designated as Chairman and Managing Director of w.e.f. August 8, 2022, for a term of 3 years. He has an experience of around 22 years in the Industry. He is the key driver of the growth of the Company at the present level. He is responsible for managing and supervising operations, expansion of business, sourcing new projects, and overall management of the business of the Company. His abilities have been instrumental in leading the business of the Company. Mrs. Syntia Moses Darry, aged 38 years, is the Whole Time Director of the Company. She holds a Master's degree in Commerce and Computer Application. She has over 12 years of experience in the industry. She is responsible for budgets, cost-effectiveness, and Company finance. Mr. Binu Joshua Sammanohar, aged 36 years, is the Whole Time Director of the Company. He holds a Bachelor's degree in commerce from Manonmaniam Sundaranar University. He has an experience of more than 12 years of working in Sales, Marketing, and Operations. He is responsible for Company’s day-to-day operations, creating strategies for sustained growth, and envisioning Company policies and finance.

Financials of Phantom Digital Effects Limited IPO:

Particulars (in Cr.) Q1FY23 FY22 FY21 FY20
Income 12 22 8 13
Cost of material consumed 0.55 0.81 0.20 0.70
Change in Inventory 0.33 -1.19 -2.72 0.22
Employee Benefit 4.00 11.00 6.82 7.75
Other Direct Expenses 1.19 3.31 1.92 2.70
Other expenses 0.46 0.45 0.21 0.26
EBITDA 5.47 7.62 2 1
OPM 46% 35% 20% 11%
Finance Cost 0.001 0.65 0.29 0.87
Depreciation 0.06 0.28 0.39 0.49
PAT 4.11 4.9 0.075 0.11
NPM 34% 22% 1% 1%
Equity Shares 1.164 1.164 1.164 1.164
EPS 3.53 4.21 0.06 0.09

Comparison With Peers:

Peer is shown as Prime Focus Ltd which is in loss. So, comparison is difficult.

Recommendation on Phantom Digital Effects Limited IPO:

Review and Recommendation of Phantom Digital Effects Limited IPO by IZ Team is 3/10

1. The company which was started in the year 2011 by taking small projects in VFX and animation is today a creative VFX studio, specializing in Film, Web series and Commercial. They have also delivered more than thousands of shots for Domestic and International feature films (Hollywood). 2.  The Company also occasionally accepts subcontracts from bigger visual effects studios in addition to working on film productions and commercials. 3. They provide high-end visual effects solutions for commercials, feature films, and Web series globally like Completing a Shot with final compositing, Creating 3D elements, 3D matchmove, 3D animation, Pre-visualization Game cinematics, and Fire / water Fx and other natural phenomena 3D ride animation. 4. Revenue has shot up in Fy22 and in the first quarter of FY23. The first quarter of FY23 looks like  a cooked up revenue. There is an increase in revenue but trade receivables has also gone up. 5. The EPS of Fy22 is Rs. 4 per share. So, based on that P/E is 26x. This looks on higher side. 6. The peer is in loss, so comparison is difficult for valuation. 7. Mcap = 110 Crores. Looks very high. 

Lead Manager of Phantom Digital Effects Limited IPO:

  1. Corporate Capital Ventures Private Limited

Registrar of Phantom Digital Effects Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Phantom Digital Effects Limited 6th Floor, Tower B, One India Bulls Park, Plot No.14, 3rd Main Road, Ambattur, Chennai – 600058 Phone: + 91 44 43846228 Email: cs@phantom-fx.com/ Website: https://www.phantom-fx.com/index.php

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