The ₹282 crore public issue of Sunshine Pictures has opened for subscription today, with the price band fixed at ₹342 to ₹360 per share. Investors can bid in multiples of 41 shares.
The initial public offering comprises a fresh issue of ₹172.80 crore and an offer-for-sale of ₹109.34 crore. In terms of allocation, 50 per cent of the net issue is reserved for qualified institutional buyers, while 15 per cent is allocated to non-institutional investors. Retail investors have been offered 35 per cent of the net issue.
The company plans to utilize the net proceeds from the fresh issue to fund working capital requirements and for general corporate purposes.
Ahead of the public subscription, Sunshine Pictures—promoted by Vipul Shah and his wife Shefali—raised ₹84.64 crore from nine anchor investors by allotting over 23.51 lakh shares at ₹360 apiece.
The marquee anchor investors include Uni Growth Fund, Khandelwal Finance, Zeal Global Opportunities Fund, The Asia Fund VCC, Shine Star Build Cap, Innovative Vision Fund, Arnesta Global Opportunities Fund, Visionary Value Fund, and LRSD Securities.
Sunshine Pictures produces content either as a sole producer or via a co-production model. Under co-production, the company partners with studios for a fixed fee and a share of intellectual property and profits. For sole production, the company finances the entire project, executing end-to-end production while retaining all rights, including intellectual property, titles, and distribution rights, allowing it to capture theatrical upside and monetization from OTT and music rights.
The company is led by Promoter and Managing Director Vipul Amrutlal Shah, who has over 25 years of experience in the media and entertainment industry, having directed films such as Aankhen, Waqt: The Race Against Time, Namastey London, Singh Is Kinng, and London Dreams.
GYR Capital Advisors Private Limited is serving as the book-running lead manager for the IPO, while Bigshare Services Private Limited is the registrar.
Brokerage views on the issue are mixed. SBI Securities has recommended investors to AVOID the issue, citing historical negative revenue, EBITDA, and PAT CAGRs over the FY24-FY26 period due to project uncertainties, and noting an upper-band FY26 P/E multiple of 27.8x. Conversely, Master Capital Services has suggested that investors may consider the IPO as a long-term investment opportunity, highlighting the company's experience across film, television, and web series production, along with its upcoming pipeline of six films and two web series.
"The entertainment sector involves unique capital allocation challenges because project revenues are inherently unpredictable. While anchor investor participation provides early momentum, retail and institutional investors must carefully evaluate the balance between working capital needs and historical financial performance. A diversified content pipeline and effective monetization of intellectual property remain critical for long-term sustainability in media businesses." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
