Monday, May 20, 2024

BODHI TREE MULTIMEDIA LTD. INITIAL PUBLIC OFFERINGS (IPO)

Bodhi Tree Multimedia Ltd. is entering capital market with an IPO. The public issue comprises of 3,90,000 shares at the rate of Rs 95 aggregating Rs 3.71 crores. The issue opens for public subscription on 9th October 2020   and closes on 13th October 2020. The minimum lot size is 1200 shares and the amount is Rs 1,14,000.

For FY 20 the company reported a robust performance with turnover at Rs 27.45 crores and net profit at Rs 3.66 crores translating into earnings per share of Rs 140

The shares are being offered at a very attractive price of ₹95 which works out to a price multiple of only 2.23 against the average industry ratio of 15. What is encouraging is that the outlook for FY 21 is highly promising with huge orders on hand which is expected to contribute substantially   to revenues and profits.

The shares would be listed on NSE –Emerge. The issue is lead managed by Shreni Shares Pvt.Ltd and underwritten by Altina Securities Pvt. Ltd

Mr. Mautik Tolia, Founder and Managing Director of Bodhi Tree Multimedia Ltd. stated that the entertainment industry has the distinction of not only qualifying as a recession proof sector but also as a sector with enormous growth potential. Irrespective of economic conditions individuals will continue to pursue entertainment as a mode of relaxation and it is also one of the cheapest form of entertainment for the masses.

Therefore, Companies operating in this industry both in India and abroad have created enormous wealth for investors over the long term. Many of these companies have grown from pygmies to giants.

Mr. Tolia further stated that the next five years will see digital technologies increase their influence across the industry leading to a sea change in consumer behavior across all segments. The company’s clientele consists of marquee names like Amazon, Netflix, Star TV Network,

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Disney, Zee to name a few while the size of the entertainment market is estimated at over Rs 10,000 crore.

India’s media consumption has grown at a CAGR of 9 per cent between 2012-18, almost nine times that of US and two times that of China.

New avenues like OTT (over the top) have opened up a huge revenue potential for the sector. Among the global OTT players, a major growth driver is Netflix which launched its global video on demand (SVOD) service in January 2016, Reports reveal that it has 104 million subscribers in 190 countries and the service supports 24 languages. Therefore, the sector has exponential growth prospects and investors need to identify companies at early stages that have

good growth potential. Companies in the entertainment sector are such companies that   have the potential for enormous growth.

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