Thinking Hats Entertainment Solutions Limited
Thinking Hats Entertainment Solutions Limited(THESL)
Total Shares
34,29,000
Issue Size
₹15.09 Cr
Price Band
₹42 – ₹44
Lot Size
3000 shares
Min. Investment
₹1,32,000
Max. Investment
₹1,32,000
Open Date
25 Sep, 2024
Close Date
27 Sep, 2024
Allotment
30 Sep, 2024
Listing
03 Oct, 2024
Max. Investment
₹1,32,000
Announced
25 Sep, 2024
Opening Date
25 Sep, 2024
Closing Date
27 Sep, 2024
Basis of Allotment
30 Sep, 2024
Initiation of Refunds
01 Oct, 2024
Credit of Shares
01 Oct, 2024
Listing Date
03 Oct, 2024
Live GMP
Est. Listing: ₹51
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About Thinking Hats Entertainment Solutions Limited IPO
Incorporated in February 2013, Thinking Hats Entertainment Solutions Limited specializes in concept development, event design, and production for live events, corporate functions, MICE, social and virtual events, as well as OTT content production and experiential marketing with a focus on content development, intellectual property curation, and tech-centric product development.
The company makes exclusive content for OTT platforms such as Netflix, Amazon, Sony Liv, MX Player, Disney+H
Thinking Hats Entertainment Solutions Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 37.9% increase in shares
Thinking Hats Entertainment Solutions Limited IPO Financials Health
Thinking Hats Entertainment Solutions Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 3000 | ₹1,32,000 |
| Retail Maximum | 1 | 3000 | ₹1,32,000 |
| HNI Minimum | 2 | 6000 | ₹2,64,000 |
(All values in CR)
Thinking Hats Entertainment Solutions Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 0.49 |
| EPS Post IPO | 2.48 |
| EPS Pre IPO | 3.41 |
| P/BV | 3.5 |
| P/E Post IPO | 17.77 |
| P/E Pre IPO | 12.89 |
| PAT Margin (%) | 11.61 |
| ROCE | 29.37% |
| ROE | 28.11% |
| RoNW | 28.11% |
(All values in CR)
Strength & Risk of Thinking Hats Entertainment Solutions Limited IPO
1. Diversified service portfolio with more than 10 years of track record.
2. Geographical presence.
3. Strong in-house concept creation and designing expertise.
4. Marque Clientele.
5. Meeting expectation of clients and maintaining long term relationship with clients.
6. Well experienced management team with proven project management and implementation skills.
1. The company significantly relies on event management division for a significant amount of revenue, and any interruption or reduction in the customers in the said division may adversely affect its business and results of operations.
2. The company is exposed to claims from inadequate performance and defects that may affect the events managed by it and which may have an adverse effect on its business, financial conditions and results of operations.
3. Its business is subject to occasional/ seasonal fluctuations that may affect the company cash flows and business operations.
4. The company depends on its long term customers for a significant portion of the company revenue, and any decrease in revenues or sales from any one of such key customers may adversely affect its business and results of operations.
5. The company typically does not have firm commitment with its customers. If the company customers choose not to source their requirements from it, there may be a material adverse effect on its business, financial condition, cash flows and results of operations.
6. The company operates in limited geographies for a significant portion of its revenue and also depends on limited number of customers for the company revenue from operations. Projects in new geographies may not be as profitable as in existing geographies.
7. Its operations are subject to risks of mishaps or accidents that could cause damage or loss to life and property and could also result in loss or slowdown in its business.
8. Its business is dependent on third party vendors for activities related to the event like décor & production, lighting, and other equipment, other services & facilities etc. Non-availability of such vendor may adversely affect its business and results of operations.
9. If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operate its business, it may have a material adverse effect on the company's business, results of operations and financial condition.
10. Its business is dependent upon the taste and preferences of the audience. Any shift in consumer taste and preference will have a negative impact on its business.
Thinking Hats Entertainment Solutions Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| HNI | 357.02 | 8,76,000 | 31,27,47,000 | 1 |
| Market Maker | 1.00 | 1,80,000 | 1,80,000 | 0.79 |
| QIB | 67.67 | 3,24,000 | 2,19,24,000 | 96.47 |
| Retail | 347.64 | 20,49,000 | 71,23,08,000 | 3 |
| Total | 322.25 | 32,49,000 | 1,04,69,79,000 | 4 |
Thinking Hats Entertainment Solutions Limited IPO GMP
Last updated 20 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 20 Sep, 2024 | 44 | ₹7▼ | 16000 | ₹51 (15.91%) | - | 20 Sep, 2024 |
| 21 Sep, 2024 | 44 | ₹15▼ | 34200 | ₹59 (34.09%) | - | 21 Sep, 2024 |
| 23 Sep, 2024 | 44 | ₹20▼ | 45600 | ₹64 (45.45%) | - | 23 Sep, 2024 |
| 24 Sep, 2024 | 44 | ₹25 | 57000 | ₹69 (56.82%) | - | 24 Sep, 2024 |
| 25 Sep, 2024 | 44 | ₹25▼ | 57000 | ₹69 (56.82%) | - | 25 Sep, 2024 |
| 26 Sep, 2024 | 44 | ₹30 | 68400 | ₹74 (68.18%) | - | 26 Sep, 2024 |
| 27 Sep, 2024 | 44 | ₹30 | 68400 | ₹74 (68.18%) | - | 27 Sep, 2024 |
| 30 Sep, 2024 | 44 | ₹30 | 68400 | ₹74 (68.18%) | - | 30 Sep, 2024 |
| 01 Oct, 2024 | 44 | ₹30 | 68400 | ₹74 (68.18%) | - | 01 Oct, 2024 |
| 03 Oct, 2024 | 44 | ₹30 | 68400 | ₹74 (68.18%) | - | 03 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
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Thinking Hats Entertainment Solutions Ltd. (THES) IPO Overview
The Initial Public Offering (IPO) of Thinking Hats Entertainment Solutions Ltd. (THES) marks its debut on the Emerge Platform of the National Stock Exchange (NSE). The company is issuing 34,29,000 equity shares, offering an opportunity to investors to become part of an expanding entertainment solutions industry.
About the Company
THES is a prominent player in the entertainment industry, providing a wide array of services from event management to content creation. Incorporated in 2013, the company has grown under the leadership of Rajesh Bhardwaj, Gaurav Singhania, and Shruti Singhania.
Key IPO Details
- Type of Issue: 100% Book Built
- Fresh Issue Size: 34,29,000 Equity Shares
- Face Value: ?10 per share
- Listing Exchange: NSE Emerge
- Promoters: Rajesh Bhardwaj, Gaurav Singhania, Shruti Singhania
- Issue Opens: September 25, 2024
- Issue Closes: September 27, 2024
Financial Overview and Strengths
The financial performance of THES has shown promising trends. Here’s a breakdown of the company’s financials as mentioned in the Red Herring Prospectus:
- Revenue Growth: Steady growth with diversified revenue streams across entertainment sectors.
- Profit Margins: Healthy profit margins, showcasing the company’s ability to maintain profitability despite operating in a competitive industry.
Key Strengths of THES
- Experienced Management: A team of industry veterans with a combined experience in entertainment and event management.
- Diverse Portfolio: THES offers a broad range of services, making it resilient against market volatility in any single sector.
- Growth in Demand for Entertainment Services: Rising disposable income and growing demand for digital content present expansion opportunities for the company.
IPO Pros and Cons
Pros
- Growth Potential: With the booming entertainment sector, THES is well-positioned to capture a larger market share.
- Diversification: The company has a diversified business portfolio, reducing dependence on a single source of revenue.
- Strong Management Team: Led by seasoned promoters with substantial industry expertise.
Cons
- First Public Issue: Being the company's first public issue, the market's reaction is unpredictable, and there is no past trading history.
- Industry Risks: The entertainment industry is highly competitive and subject to changing consumer preferences, which could impact revenue.
- Market Risk: The share price could be volatile due to the lack of a sustained market for the company’s equity shares.
Risk Factors
Investors are advised to carefully evaluate the risk factors associated with this IPO:
- Lack of Market History: As this is THES's first issue, there is no assurance of sustained trading post-listing.
- Competition: THES operates in a highly competitive industry, and larger players may leverage their size to gain more market share.
- Economic Factors: Changes in consumer spending patterns due to economic downturns could affect the company's revenue growth.
Conclusion
The IPO of Thinking Hats Entertainment Solutions Ltd. presents both opportunities and risks for potential investors. With a growing presence in the entertainment industry and a diversified business model, the company is set for expansion. However, market uncertainties and competition must be factored into the investment decision.
Investors looking for exposure to the entertainment sector might find this IPO attractive, but it is critical to weigh the risks associated with an initial offering and market volatility.
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FAQs About Thinking Hats Entertainment Solutions Limited Ipo
Thinking Hats Entertainment Solutions Limited IPO will open on 25 Sep, 2024 and close on 27 Sep, 2024. Investors must apply within this period to participate.
The Thinking Hats Entertainment Solutions Limited IPO price band is set between ₹42.00 and ₹44.00 per share. The minimum lot size is 3000, requiring an investment of at least ₹132000.00.
The Thinking Hats Entertainment Solutions Limited IPO shares are expected to be listed on 03 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Thinking Hats Entertainment Solutions Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Thinking Hats Entertainment Solutions Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.