Fw: IPO Note - Shemaroo Entertainment Ltd

 

Shemaroo Entertainment Ltd: Subscribe Issue opens 16-Sep-14, Issue closes 18-Sep-14, Price band Rs155-170 Shemaroo Entertainment Ltd. (SEL) is one of India's largest Film and Entertainment Content House involved in content aggregation, distribution, production and post-production. Its content library spans over 2,900 titles of which over 700+ titles are perpetual rights (wholly owned) and the remaining 2,000+ titles are aggregate rights (partially owned). SEL's primary distribution channels are Broadcast Syndication (Satellite, Terrestrial and Cable TV), which generates over 50% of the Company's revenues, New Media (Mobile, IPTV, YouTube, etc), Home Video (VCD, DVD, Blu-ray) and Others (In-flight entertainment and overseas sales). SEL has posted strong revenue growth of 26.4% and maintained profitability in the last 4 years. Valuations for the company stands at 15.4x FY14 earnings (post issue diluted equity at lower price band), which we believe to be fair given how peers such as Eros International, JMD Telefilms, Media One and! Prime Focus are currently priced, based on FY14 earnings and their respective growth and risk characteristics. We recommend clients to subscribe to the issue in the price range of Rs155- Rs165 and further avail the 10% discount available to retail investors.

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Warm Regards, Amar Ambani