Thinking Hats Entertainment Solutions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Sep 2024 – 27 Sep 2024
- Listing date
- 03 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹44 per share
- Lot size
- 3,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹15.09 Cr
- Market cap at offer price
- ₹54.94 Cr
- Promoter holding
- 78.29% → 56.78% pre-issue → post-issue
- ISIN
- INE0SHE01019
- Registrar
- MAS Services Ltd.
- Lead managers
- Horizon Financial Pvt.Ltd.
- Registered office
- KU220, Kuber Kartik, New Link Road, Prem Co-operative Society, Andheri (west), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,80,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹44
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,32,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,64,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,24,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,56,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.41 | 2.48 |
| P/E (×) | 12.90 | 17.74 |
| Price to book (×) | 3.50 | — |
| Market cap | — | ₹54.94 Cr |
Key performance indicators
- Return on net worth
- 28.11%
- ROCE
- 29.37%
- Debt / equity
- 0.49
- PAT margin
- 11.61%
- NAV per share
- ₹12.56
- Price to book
- 3.50
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Thinking Hats Entertainment Solutions
Thinking Hats Entertainment Solutions Limited was incorporated on February 11, 2013 and converted into a public limited company on September 7, 2023. The company evolved from a premier concept development, event design and production company that specializes in live events, corporate, MICE (Meetings, Incentives, Conferences and Exhibitions), social and virtual events to an OTT content production and experiential marketing company with a strong focus on content development, intellectual property curation and tech centric product development. With more than a decade of experience in creating events and experiences, the company provides event management services related to corporate events, corporate meetings, conference management, brands and product launches, lifestyle and fashion events, exhibitions & fairs, entertainment show management, and pan-India ground activations. The company also provides retail visual merchandise services to various retail stores and has ventured into production of OTT content, producing web series, movies, and short films.
Company Analysis
from RHPThinking Hats Entertainment Solutions Limited is a concept development, event design and production company specializing in live events, corporate, MICE, social and virtual events, combined with OTT content production and experiential marketing.
Thinking Hats Entertainment Solutions Limited was incorporated on February 11, 2013 and converted into a public limited company on September 7, 2023. The company evolved from a premier concept development, event design and production company that specializes in live events, corporate, MICE (Meetings, Incentives, Conferences and Exhibitions), social and virtual events to an OTT content production and experiential marketing company with a strong focus on content development, intellectual property curation and tech centric product development. With more than a decade of experience in creating events and experiences, the company provides event management services related to corporate events, corporate meetings, conference management, brands and product launches, lifestyle and fashion events, exhibitions & fairs, entertainment show management, and pan-India ground activations. The company also provides retail visual merchandise services to various retail stores and has ventured into production of OTT content, producing web series, movies, and short films.
Objects of the Issue
- Prepayment or repayment of all or a portion of certain loans availed by our Company ₹200.00 lakhs p.22
- Funding of working capital requirements of our Company ₹840.00 lakhs p.22
- General corporate purposes [●] p.22
- Prepayment or repayment of all or a portion of certain loans availed by our Company Upto ₹200.00 lakhs p.78
- Funding of working capital requirements of our Company Upto ₹840.00 lakhs p.78
- General corporate purposes p.78
- Not specified in this part of document
Issue Structure
- Total Issue
- Upto 34,29,000 Equity Shares aggregating Up to ₹ [●] lakhs
- Fresh Issue
- Upto 34,29,000 Equity Shares aggregating Up to ₹ [●] lakhs
- Offer for Sale
- Not Applicable
- Price Band
- [●] (Floor Price) to [●] (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10/-
Business Model
The company operates through three primary revenue segments: Event Management (56.66% of revenue in FY2024), which designs, plans, oversees and executes corporate events, MICE, sports events, conferences, and festivals; Retail Visual Merchandising Business (35.71% of revenue in FY2024), which provides interior design and visual merchandising services to leading fashion brands; and Movie and OTT Content (7.63% of revenue in FY2024), which produces web series and films for OTT platforms.
Business Segments
SWOT Analysis
- • Diversified service portfolio across event management, retail visual merchandising, and OTT content production(p.21)
- • Established brand and over a decade of operational experience in event management(p.21)
- • Growing OTT content production segment with multiple projects in pipeline(p.21)
- • Strong revenue growth trajectory with PAT increasing from ₹37.21 lakhs (FY2022) to ₹309.16 lakhs (FY2024)(p.22)
- • Significant revenue growth with total revenue increasing from ₹1,160.19 lakhs (FY2022) to ₹2,663.18 lakhs (FY2024)(p.22)
- • Established brand name and market presence in event management(p.124)
- • Strong in-house concept creation and design expertise(p.125)
- • Established relationships with key suppliers(p.125)
- • Strong relationships with major clients and repeat business(p.125)
- • Experienced management team with proven track record(p.112)
- • Diverse client base across multiple industries(p.111)
- • Multi-vertical business model reducing dependency(p.113)
- • Strong relationship with broadcasters and OTT platforms(p.125)
- • Diversified revenue streams across event management, retail merchandising, and OTT content(p.203)
- • Strong revenue growth and profitability recovery post-COVID(p.209)
- • Significant volume growth in service delivery(p.206)
- • Improved profitability with strong EBITDA margins(p.208)
- • Over a decade of operational experience in events and experiences(p.203)
- • High revenue dependence on event management division (56.66% in FY2024)(p.28)
- • Extreme customer concentration with top 5 customers representing 63.75% of revenue in FY2024(p.29)
- • Limited geographic presence concentrated in select Indian states(p.30)
- • High reliance on informal agreements with customers without long-term contracts(p.28)
- • Significant indebtedness with total borrowings of ₹543.46 lakhs as of March 31, 2024(p.31)
- • History of delays in GST payment filings and statutory form submissions(p.33)
- • Contingent liability of ₹15.44 lakhs for GST demand for FY 2018-19(p.24)
- • IP-based business model with high investment uncertainty and no guaranteed returns(p.32)
- • Dependence on third-party suppliers without long-term agreements(p.32)
- • Property lease arrangements without ownership, creating operational vulnerability(p.42)
- • Dependence on small pool of key personnel(p.129)
- • Limited financial resources for investment(p.129)
- • High concentration of revenue from top customers(p.125)
- • Limited marketing and advertising resources(p.129)
- • Service sector with no owned equipment or physical assets(p.129)
- • Heavy dependence on top few customers for revenue(p.206)
- • Significant increase in financial costs and debt burden(p.208)
- • High debt-to-equity ratio and reliance on multiple sources of borrowing(p.201)
- • Growing receivables with increasing proportion of aged amounts(p.185)
- • Pending GST tax dispute with material liability(p.213)
- • Expansion into Pan-India operations and growing industries(p.34)
- • Growing OTT and digital content production market(p.21)
- • Rising consumer demand and improving advertising revenue in Indian M&E industry(p.21)
- • Leveraging emerging technologies like AI, AR, and VR in content and experiences(p.35)
- • Potential to reduce customer concentration through geographic and segment diversification(p.28)
- • Expansion into emerging digital media and content platforms(p.127)
- • Growth in India's rapidly expanding M&E industry(p.107)
- • Expanding into tech-enabled event and retail solutions(p.129)
- • Developing own intellectual properties for global markets(p.128)
- • Pan-India expansion to capture growing domestic markets(p.127)
- • Investment in emerging technologies like AI, AR, VR(p.111)
- • Rising demand for online streaming and OTT content(p.107)
- • Strategic partnerships with streaming platforms(p.129)
- • Expansion into OTT content production and streaming platforms(p.203)
- • Growing demand across multiple service verticals and geographies(p.203)
- • Strong customer base diversification strategy underway(p.209)
- • Cyclical nature of event management business and seasonal fluctuations(p.20)
- • Intense competition from organized and unorganized players(p.39)
- • Unpredictable shifts in consumer tastes and entertainment preferences(p.32)
- • Operational risks including accidents, mishaps, and force majeure events(p.30)
- • Labour-intensive operations vulnerable to strikes and wage disputes(p.34)
- • Dependence on OTT platforms and intermediaries for digital content revenue(p.32)
- • Volatility in Indian and global securities markets affecting share price(p.45)
- • Exposure to downturn in customer industries affecting demand for services(p.35)
- • Risks of payment delays and defaults by customers(p.37)
- • Intense competition from large players(p.129)
- • Rapidly evolving technology requiring continuous investment(p.129)
- • Changes in consumer preferences and trends(p.129)
- • Regulatory changes and legal challenges(p.129)
- • OTT market profitability challenges and content cost pressures(p.109)
- • Significant content cost burden in OTT industry(p.110)
- • Potential merger and consolidation reshaping competitive landscape(p.110)
- • Potential content regulation and censorship concerns(p.110)
- • Significant reliance on event management division vulnerable to sector disruptions(p.204)
- • Exposure to claims from inadequate performance and quality defects(p.204)
- • Business subject to seasonal fluctuations affecting cash flows(p.204)
- • Lack of firm customer commitments(p.204)
- • Highly competitive fragmented industry with low entry barriers(p.211)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajesh Bhardwaj | Promoter | 49.67% | — |
| Gaurav Singhania | Promoter | 20.18% | — |
| Shruti Singhania | Promoter | 0.01% | — |
| Sana Warsi | Promoter Group | 8.42% | — |
| Ruchi Agarwal | Promoter Group | 0.01% | — |
| Rajesh Bhardwaj | Promoter | 49.67% | 36.03% |
| Gaurav Singhania | Promoter | 20.18% | 14.64% |
| Shruti Singhania | Promoter | 0.01% | 0.01% |
| Sana Warsi | Promoter Group | 8.42% | 6.11% |
| Ruchi Agarwal | Promoter Group | 0.01% | 0.01% |
| Rajesh Bhardwaj | Promoter | 49.67% | — |
| Gaurav Singhania | Promoter | 20.18% | — |
| Shruti Singhania | Promoter | 0.01% | — |
| Rajesh Bhardwaj | Promoter | 51.37% | — |
| Gaurav Singhania | Promoter | 20.87% | — |
| Sana Warsi | Promoter | 8.71% | — |
| Ashish Lalu Hasija | Promoter | 4.35% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.