Sunshine Pictures IPO fully subscribed within 90 minutes of opening

MUMBAI: Sunshine Pictures has made a quick opening act in the primary market.

The Sunshine Pictures initial public offering (IPO), promoted by filmmaker Vipul Amrutlal Shah, was fully subscribed within 90 minutes of opening for public subscription on August 18.

According to data from the National Stock Exchange of India, the issue had received bids for 54.59 lakh shares against the 54.86 lakh shares on offer by 11.30 am. The retail investor portion was subscribed 1.49 times, while the non-institutional investor category was subscribed 1.16 times.

The Rs 282-crore IPO opened at a price band of Rs 342 to Rs 360 per share and will remain open until August 20. The issue comprises a fresh issue and an offer for sale (OFS) by promoters.

Before the IPO opened, Sunshine Pictures raised Rs 84.64 crore from nine anchor investors. The investors included Innovative Vision Fund, Khandelwal Finance Pvt Ltd, Arnesta Global Opportunities Fund, Uni Growth Fund, Zeal Global Opportunities Fund, Visionary Value Fund, The Asio Fund VCC, Shine Star Build Cap Pvt Ltd and LRSD Securities Pvt Ltd.

The grey market also indicated positive sentiment around the issue. Market tracking platforms put the grey market premium (GMP) at around 20 to 21 per cent. Investorgain reported a GMP of Rs 75, implying a potential listing gain of around 20.83 per cent, while IPO Watch reported a GMP of 20.28 per cent.

Under the OFS, Vipul Shah is selling 20.31 lakh shares, while Shefali Vipul Shah is offloading 10.06 lakh shares.

Sunshine Pictures plans to use up to Rs 112.50 crore from the fresh issue to meet its long-term working capital requirements. The remaining proceeds are earmarked for general corporate purposes.

The company operates across the entertainment value chain, covering the origination, development, production, marketing and distribution of films and web series. Its portfolio also spans television content.

The IPO marks a significant step for Sunshine Pictures as it seeks to expand its operations and strengthen its position in India’s entertainment industry. The public listing is also expected to increase the company’s visibility and provide a market for its equity shares.

With the issue finding buyers within a short window on the first day, Sunshine Pictures’ market debut has started with a strong show of investor appetite. The bigger box-office test, however, will come when the shares make their stock market debut.