India’s Studio LSD shares debuted at ₹43.20 on NSE SME, 20% below the IPO price of ₹54, despite 3.23x oversubscription. Retail demand was strong, but listing sentiment remained weak.
India’s Studio LSD Limited experienced a poor first trading session on the NSE SME platform on Monday, August 25, when its shares opened at ₹43.20, down by 20 percent from the issue price of ₹54.
In contrast to the depressed listing, IPO-period investor appetite was vigorous. Shares in the matter were over-subscribed by a factor of 3.23, in which retail investors took the lead with the demand by subscribing 4.58 times. Non-institutional investors went along with the proposal 1.25 times, while the qualified institutional buyer group was bespoken in full.
IPO Structure and Fund Utilization
The ₹74.25 crore IPO included a fresh issue of 1.10 crore shares worth ₹59.40 crore and an offer-for-sale of 0.28 crore shares aggregating to ₹14.85 crore. The money raised from the fresh issue will be used for the purchase of fixed assets, working capital, and general corporate purposes.This reflects a focus on the enlargement of the company’s activities and the betterment of production efficiency.
About Company and Financial Performance
Studio LSD is a multimedia production house that produces original content for television and OTT and was established in 2017. Its full-stack production model, which essentially allows for complete coverage from the very first concept to the final packaging, enables the company to deliver creative solutions at a cost-efficient rate.
In FY25, the company saw its revenue grow to ₹105.01 crore, with profit after tax growing 7 percent year-on-year to ₹11.67 crore. The operating performance of the company was on the positive side as the EBITDA went up by 4.65 percent to ₹15.51 crore. The excellent return ratios were a clear indication of the company’s capital use efficiency as return on equity stood at 53.78 percent and return on capital employed at 57.29 percent.
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