Sunshine Pictures IPO Sees Overall Subscription Rise to 18.47x on Day Two

Sunshine Pictures Ltd's initial public offering recorded a significant jump in demand on its second day, driven largely by non-institutional and retail investors. However, qualified institutional buyers remained low as the issue heads toward its final day of bidding.

The initial public offering (IPO) of Sunshine Pictures Ltd witnessed a sharp increase in demand on its second day of bidding, with the overall subscription jumping to 18.47 times compared to 4.33 times at the close of the first day.

According to the data, total bids received stood at 10,13,11,123 shares against 54,86,051 shares on offer. The issue is scheduled to close on August 20.

The non-institutional investor (NII) category emerged as the primary driver of the demand, achieving an overall subscription of 35.59 times. Within this segment, the sub-₹10 lakh NII bucket led with a subscription of 48.63 times, while the above-₹10 lakh NII category reached 29.07 times. Individual non-institutional bidders accounted for the majority of the demand across both sub-categories.

Retail individual investors (RIIs) also registered a notable increase, with their subscription rising to 21.60 times compared to 5.98 times on day one. Bids for 5,92,47,788 shares were received against the 27,43,023 shares reserved for retail investors, with cut-off price bids forming the majority at 4,98,66,660 shares.

In contrast, the qualified institutional buyer (QIB) category continued to lag behind, reaching 0.14 times subscription by the end of day two, up marginally from 0.03 times on the first day. Mutual funds recorded 2,788 bids, the 'Others' sub-category within QIBs accounted for 2,16,111 shares, and foreign institutional investor (FII) participation remained negligible at 3,936 shares.

Market participants are closely watching the QIB response on the final day, as institutional participation typically consolidates toward the end of an issue.

Meanwhile, brokerage firm SBI Securities has maintained an AVOID recommendation on the issue. The brokerage cited a declining revenue trend for the company, a negative CAGR of 25.4 per cent over FY24–FY26, and a rich valuation at 27.8 times FY26 post-issue earnings, noting that business outcomes remain heavily dependent on box office performance.

"The strong retail and non-institutional participation on day two highlights robust appetite among individual investors for this public issue. However, the subdued institutional demand so far indicates that QIBs are adopting a wait-and-watch approach. As the issue moves toward its final day, the concentration of institutional bids will be the critical factor to observe, especially given the valuation concerns and revenue trends highlighted by market analysts." — Dr. Shishir Gupta, Founder & CEO, StartupLanes