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Review By Dilip Davda on April 21, 2015
UFO Moviez India Ltd is India’s largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens. UFO operates India’s largest satellite-based, digital cinema distribution network using its UFO-M4 platform, as well as India’s largest D-Cinema network. 3i Research Mauritius Limited and P5 Asia Holding Investments (Mauritius) Limited has made investments in UFO.
UFO is India’s largest digital cinema distribution network and in-cinema advertising platform (in terms of numbers of screens), as at October 31, 2014, according to CRISIL. In fiscal year 2014, the company digitally delivered more than 1,500 movies in 22 languages to 4,703 screens with aggregate seating capacity of approximately 2.15 million viewers spread across India. Since the beginning of its operations, it has digitally delivered more than 8,800 movies in India until February 28, 2015. As at February 28, 2015, its global network spans 6,626 screens worldwide, including 4,911 screens across India and 1,715 screens across Nepal, the Middle East, Israel, Mexico and the USA.
UFO Moviez has created a pan-India, high-impact, in-cinema advertising platform with generally long-term advertising rights to 3,770 screens, with an aggregate seating capacity of approximately 1.85 million viewers and a reach of over 1,800 locations across India, as at February 28, 2015. UFO has also brought cricket matches LIVE to cinema screens in high definition, thus providing an option of alternate content to exhibitors in India. Company has 54% share in the digitized movie exhibition market with lion share in Tire-II and Tire-III cities.
To meet listing requirements and to unlock the value for its stakeholders, the company is having offer for sale from existing stakeholders for approx 96 lakh equity share of Rs. 10 each in a price band of Rs. 615-625. Issue opens for subscription on 28.04.15 and will close on 30.04.15. Minimum application is to be made for 24 shares and in multiples thereon, thereafter.
Under an exclusive arrangement with Impact Media Exchange Limited, it is marketing an electronic ticketing platform known as the Integrated Media Pact, or “IMPACT”, to improve transparency, efficiency and accountability in movie screening industry. The transactions on IMPACT are captured on a real time basis as it is connected via satellite to a centralized Network Operation Centre. IMPACT mediates the transactions between exhibitors on one hand and distributors on the other, ensuring that ticketing transactions and movie screenings are transparent. IMPACT has been designed to ultimately act as a settlement exchange for various stakeholders of the movie screening industry. Provide an end-to-end, high-reach and high-quality digital cinema solution for movie producers, distributors and exhibitors and offer a flexible, transparent and high-impact platform that allow advertisers to have maximum engagement with cinema-goers.
For last three fiscals on consolidated basis the company has posted turnover and net profit of Rs. 207.65 crore/Rs. 6.15 crore (2012), Rs. 337.50 crore/Rs. 39.07 crore (2013), Rs. 421.09 crore/Rs. 50.10 crore (2014). For first nine months ended 31.12.14 it has earned net profit of Rs. 40.62 crore on a turnover of Rs. 357.23 crore. As on same date its equity of Rs. 25.90 crore is supported by free reserves of Rs. 416 crore plus. Being offer for sale, paid up equity stands at the same level post IPO. During the period July 2005 to March 2012 company made preferential issue of shares at a price ranging from Rs. 90 to Rs. 603.54 and also issued bonus in the ratio of 2 for 1 (March 2010). If we attribute annualized earnings for 2014-15 on the basis of first nine months result, then the asking price is at a P/E of around 30 and at a P/BV of 3.70 as per NAV of Rs. 169+ on consolidated basis as on 31.12.14. Based on this, although the issue appears pricy, being the first IPO in this segment, it is set to repeat the history of Just Dial, Wonderla, Snowman Logi.
BRLM for this IPO are Axis Capital Ltd and Citigroup Global Markets India Pvt Ltd. and registrar to the issue is Karvy Computershare Pvt Ltd. Post allotment, shares will be listed on BSE and NSE.
Issue is worth grabbing for listing gains as well as handsome rewards for long term.
Review By Dilip Davda on April 21, 2015
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of UFO Moviez Ltd offers an early investment opportunity in UFO Moviez Ltd. A stock market investor can buy UFO Moviez IPO shares by applying in IPO before UFO Moviez Ltd shares get listed at the stock exchanges. An investor could invest in UFO Moviez IPO for short term listing gain or a long term.
Read the UFO Moviez IPO recommendations by the leading analyst and leading stock brokers.
UFO Moviez IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the UFO Moviez IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for UFO Moviez IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the UFO Moviez IPO.
The UFO Moviez IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit UFO Moviez IPO allotment status to check.
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