Ullu Digital: Ullu digital files DRHP with SEBI To raise funds via IPO to list on BSE SME on 2024
Ullu Digital, a Mumbai-based over-the-top (OTT) platform, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signaling its intention to raise funds through an Initial Public Offering (IPO). The move marks a significant milestone for the small and medium-sized enterprise (SME) as it aims to leverage investor support for its ambitious expansion plans in the digital entertainment landscape.
The IPO, devoid of any Offer-for-Sale (OFS) component, consists of a fresh issue of up to 62,62,800 equity shares with a face value of ₹10 each. Notably, the company has set aside 3,15,600 equity shares for the market maker in the issue, underlining its commitment to facilitating a smooth market operation.
| Stakeholder | Ownership Stake (%) |
|---|---|
| Vibhu Agarwal (Founder) | 61.75 |
| Megha Aggarwal | 33.25 |
| Zenith Multi Trading DMCC | 5.00 |
With the primary objective of fueling growth, Ullu Digital intends to utilize the net proceeds from the IPO across various strategic avenues. These include the production of new content, acquisition of international shows, procurement of state-of-the-art equipment, recruitment of skilled personnel, meeting working capital requirements, and addressing other general corporate needs. The infusion of capital is poised to bolster the platform’s content offerings and technological infrastructure, thus enhancing its competitive edge in the burgeoning OTT sector.
Ullu Digital’s decision to list its shares on the BSE SME platform reflects its aspiration to tap into the vibrant capital market ecosystem and garner broader investor participation. The company’s commitment to democratizing access to its equity is evident through the allocation framework outlined in the DRHP. Notably, the SME IPO reserves a minimum of 35% of shares for retail individual investors, ensuring inclusivity and broad-based ownership. Additionally, non-institutional investors are earmarked a minimum of 15% of the shares, while qualified institutional buyers (QIBs) can access up to 50% of the offering, with mutual funds allotted a 5% share.
Narnolia Financial Services Ltd has been appointed as the book-running lead manager for the IPO, underscoring Ullu Digital’s strategic focus on seamless execution and investor engagement. Meanwhile, Skyline Financial Services Ltd assumes the role of registrar, entrusted with the crucial task of overseeing the IPO process and investor relations.
As the company progresses towards finalizing the offer details, Ullu Digital has provided insights into its pricing strategy. Emphasizing transparency and fairness, the company has articulated a price band mechanism, wherein the cap price must be at least 105% of the floor price. This calibrated approach aims to strike a balance between investor expectations and the company’s valuation, setting the stage for a successful IPO.
The shareholding pattern outlined in the DRHP sheds light on the key stakeholders driving Ullu Digital’s growth trajectory. Vibhu Agarwal, the company’s founder, holds a commanding 61.75% stake, underscoring his vision and leadership in steering the platform’s evolution. Megha Aggarwal, another prominent figure in the company, commands a significant 33.25% ownership share, further solidifying the Agarwal family’s influence as promoters. Additionally, Zenith Multi Trading DMCC holds a 5% stake, contributing to the diversified ownership landscape of Ullu Digital.
As Ullu Digital prepares to embark on its IPO journey, industry observers keenly anticipate the platform’s future trajectory and its potential to disrupt the OTT space. With a compelling value proposition and a robust growth strategy, the company is poised to capitalize on the dynamic shifts in consumer preferences and technological advancements. As the digital entertainment landscape continues to evolve, Ullu Digital stands ready to carve out a niche for itself, driven by innovation, content excellence, and investor confidence.
In summary, Ullu Digital’s IPO marks a significant milestone in its journey towards expansion and market consolidation. With a clear vision, a robust business model, and a commitment to value creation, the company is poised to redefine the contours of the OTT landscape, offering investors a unique opportunity to participate in its growth story.
Frequently Asked Questions (FAQ) – Ullu Digital IPO
1. What is Ullu Digital? Ullu Digital is a Mumbai-based over-the-top (OTT) platform that offers a wide range of digital entertainment content, including movies, web series, and original shows.
2. What is an IPO? An Initial Public Offering (IPO) is the process by which a company offers its shares to the public for the first time, allowing investors to buy ownership stakes in the company.
3. Why is Ullu Digital going public? Ullu Digital is going public to raise funds for its expansion plans in the digital entertainment landscape, including the production of new content, acquisition of international shows, and enhancement of its technological infrastructure.
4. How many shares will be offered in the IPO? The IPO will consist of a fresh issue of up to 62,62,800 equity shares with a face value of ₹10 each.
5. How will the IPO proceeds be used? The net proceeds from the IPO will be utilized across various strategic avenues, including content production, acquisition of international shows, procurement of equipment, recruitment, working capital requirements, and other general corporate needs.
6. What is the pricing mechanism for the IPO? Ullu Digital has articulated a price band mechanism, wherein the cap price must be at least 105% of the floor price, ensuring transparency and fairness in the pricing strategy.
7. Who are the key stakeholders in Ullu Digital? Key stakeholders in Ullu Digital include Vibhu Agarwal (Founder), Megha Aggarwal, and Zenith Multi Trading DMCC, with their ownership stakes outlined in the IPO prospectus.
8. How can investors participate in the IPO? Investors can participate in the IPO through registered stockbrokers or online trading platforms, following the guidelines provided in the IPO prospectus.
9. What role do Narnolia Financial Services Ltd and Skyline Financial Services Ltd play in the IPO? Narnolia Financial Services Ltd has been appointed as the book-running lead manager for the IPO, while Skyline Financial Services Ltd serves as the registrar, overseeing the IPO process and investor relations.
10. What is the listing platform for Ullu Digital’s shares? Ullu Digital’s shares will be listed on the BSE SME platform, reflecting the company’s aspiration to tap into the vibrant capital market ecosystem and garner broader investor participation.
