Picture Post Studios Limited IPO

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Picturepost Studios Limited (“Company” or “Picturepost Studios” or “PPSL”) is a leading post-production company established in 2019, specializing in film editing, Computer Generated Imagery (CGI), visual effects (VFX), video conversion, grading, and mastering for both film and digital platforms. Originally founded as Prodace Solutions LLP, the company was rebranded to Picturepost Studios LLP in August 2022 and subsequently converted into a private limited company in June 2023.

Services

Picturepost Studios offers a comprehensive suite of post-production services, catering to the diverse needs of the entertainment industry. Their service offerings include:
i. Offline Editing Services                                         ii. Computer Generated Imagery (CGI)
iii. Mastering and Quality Check                           iv. Visual Effects (VFX)
v. Color Grading                                                           vi. Creative Editorial

Expertise and Innovation

Their team of professionals is dedicated to pushing creative boundaries and embracing innovation. They focus on high-end color grading, motion design, visual effects, and online editing, ensuring that they deliver cutting-edge solutions and adapt to evolving technologies. This commitment has driven their rapid success and allowed them to create visual experiences that captivate audiences globally.

Conclusion

Picturepost Studios stands out as a premier visual effects company, covering the entire spectrum of post-production requirements for films, web series, and advertisements. By fostering a collaborative and innovative work environment, they continue to drive success and set new standards in the post-production industry.

Objects of the Picture Post Studios Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding of capital expenditure requirements of the company towards the purchase of equipment and Software; ii. Repayment/prepayment of all or certain of our borrowings availed by the company; iii. General corporate purposes.

Picture Post Studios Limited IPO Details:

Open Date: Aug 02 2024
Close Date: Aug 06 2024
Total Shares: 7,800,000
Face Value: ₹ 1 Per Equity Share
Issue Size: 18.72 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 22 - 24 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 09 2024

Promoters And Management:

Mr. Parish Tekriwal, 38, is the Promoter, Chairman, and Managing Director of the company. He holds a Bachelor's Degree in Commerce from the University of Mumbai. Previously, he served as COO and later Director at VRG Digital Corporation Private Limited, significantly contributing to its growth. He is also involved in PP & Co. and Parish Tekriwal Proprietorship, specializing in car care products and motor parts, respectively. At Silvercloud Studios Private Limited, he held leadership roles, expanding its market presence. Mr. Tekriwal joined the company as Business Head in April 2022, was promoted to Director in July 2023, and became Managing Director in December 2023. With 14 years of experience in post-production and 8 years in motor parts and car care, he oversees business development, client relations, finances, and operations, driving success and innovation daily. Mr. Shailendra Ishwardas Chandgotia, 58, is the Promoter and Executive Director of the company. He completed his Higher Secondary Education from the Maharashtra State Board. Since January 2001, he has been the Founder and promoter of Shreejee Tex, a textile trading business. He also serves as Director at Silvercloud Investments Private Limited and Vihi International Private Limited, overseeing investment portfolios, business strategies, and financial operations. He joined the company as Designated Partner in March 2021, significantly contributing to its growth and client collaborations in post-production. He became Executive Director in May 2024. With 23 years of experience in his sole proprietorship and 3 years in the VFX industry, he has demonstrated exceptional leadership and expertise in the company's growth and expansion. Ms. Deepa Shailendra Chandgothia, 56, is the Promoter and Executive Director of the company. Since March 2023, she has overseen key projects and financial management at Vihi International Private Limited. She joined the company as Designated Partner in March 2021, managing teams and fostering innovation in post-production at Picturepost Studios LLP. From our company's inception, she has served as its First Director and was re-designated as Executive Director in May 2024. With 3 years of experience in the company, including the former LLP, she has excelled in handling operations, promoting collaboration, and boosting team productivity.

Financials of Picture Post Studios Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 29 1,085 2,639
Other Income 0 1 15
Total Revenue 29 1,085 2,655
Operating Expense 0 515 1,239
Employees Benefit Expenses 7 40 223
Other Expenses 0.3 422 564
EBITDA 22 108 629
OPM (%) 74.79% 9.99% 23.70%
Depreciation & Amortisation 0 15 150
EBIT 22 93 479
Finance Cost 0 7 50
PBT 22 87 429
Tax 0 27 85
PAT 22 60 344
NPM (%) 74.79% 5.53% 12.94%
No.of Shares 293 293 293
EPS 0.07 0.20 1.17

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Picturepost Studios Limited 26 3 1.17 20.5 24 70
Phantom Digital Effects Limited 89 24 17.76 22.7 403 547
Prime Focus Limited 3,951 -488 -13.49 N/A 147 4,408
Digikore Studios Limited 45 10 15.06 30.9 466 295
* All the data is as per FY24.

Recommendation on Picture Post Studios Limited IPO:

1. Picturepost Studios Limited (“Company” or “PPSL”) is a leading post-production company specializing in various facets of film editing, Computer Generated Imagery (CGI), visual effects (VFX), video conversion, grading, and mastering for channels and digital platforms. 2. Service Portfolio Picturepost Studios offers a comprehensive range of post-production services, including: i. Offline Editing Services                                  ii. Computer Generated Imagery (CGI) iii. Mastering and Quality Check                     iv. Visual Effects (VFX) v. Color Grading                                                 vi. Creative Editorial 3. Industry Role and Capabilities Post-production is an integral part of filmmaking, video production, and photography. PPSL excels in transforming raw footage into polished, professional projects that align with the director's vision. The studio is equipped with state-of-the-art technology and a talented team, ensuring high-quality outcomes that resonate with audiences globally. 4. SWOT Analysis Strengths:- i. Creative Expertise                                           ii. Diverse Project Experience iii. Strong Client Relationships                        iv. Adaptability and Flexibility Weaknesses:- i. High Overhead Costs                                     ii. Dependence on Key Personnel iii. Time-Consuming Work                               iv. Rapidly Evolving Industry Opportunities:- i. Growing Demand for VFX                             ii. Access to New Talent Threats:- i. Intense Competition                                      ii. Economic Uncertainty iii. Technological Changes 5. Competition PPSL faces competition from both organized and unorganized players in the post-production market. Despite this, significant barriers to entry, such as the need for substantial working capital, long-term client relationships, and public recognition of an established brand, position PPSL well in the competitive landscape. 6. The Revenue has Increased from Rs.29 Lakhs in FY22 to Rs.26 Crores in FY24. 7. The EBITDA has Increased from 22 Lakhs in FY22 to 6 Crores in FY24. 8. The PAT has Increased from 22 Lakhs in FY22 to 3 Lakhs in FY24. 9. As per FY24, CFO/EBITDA is 0.98, and EPS is 1.17, 10. Market Capitalization is 70 Crores and P/E is 20.5x based on FY24.

Lead Manager of Picture Post Studios Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Picture Post Studios Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Picture Post Studios Limited 701, 7th Floor, Sapphire Building, Junction of S.V. Rd, Rd & 1st Rd, Khar (W), Khar Colony- Mumbai-400052 Phone: +91 9769199410 Email: investors@picturepoststudio.com Website: http://www.picturepoststudio.com/

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