The Studio LSD IPO made its much-anticipated debut on the NSE SME platform on 25 August 2025, but the listing disappointed investors as shares opened at ₹43.20 per share, marking a steep 20% decline from the issue price of ₹54. This weak listing came despite the fact that the IPO was oversubscribed 3.23 times, led largely by retail investors who subscribed 4.58 times, indicating a strong appetite from small investors ahead of the listing.

The Studio LSD IPO was a Book Built Issue worth ₹70.13 crores, consisting of a Fresh Issue of 110 lakh shares aggregating to ₹56.1 crores and an Offer for Sale (OFS) of 27.50 lakh shares totaling ₹14.03 crores. The IPO opened for subscription on 18 August 2025 and closed on 20 August 2025. The allotment was finalized on 21 August 2025, and shares listed on the NSE SME exchange on 25 August 2025.

The IPO price band was fixed between ₹48 and ₹51 per equity share, with the issue price determined at ₹54 per share. At the upper end, the market capitalization of Studio LSD stood at ₹264.65 crores. The lot size for the IPO was 2,000 shares, and retail investors had to invest in a minimum of two lots (4,000 shares), requiring a total investment of ₹2,04,000.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Studio LSD IPO was reported at ₹0 prior to listing, suggesting no premium or discount was expected in the unlisted market. The absence of GMP movement hinted at weak demand and a cautious investor approach before the listing.

Subscription Status

The subscription data showed that Studio LSD IPO attracted reasonable interest. By the final day of bidding, the IPO was subscribed 3.23 times overall. The retail portion saw strong demand, subscribed 4.58 times, while the Non-Institutional Investors (NII) category was subscribed 2.91 times. However, the Qualified Institutional Buyers (QIBs) showed lukewarm interest, with subscriptions at just 1.45 times.

Objectives of the IPO

Studio LSD stated that the net proceeds from the IPO will be used for:

1. Capital Expenditure – ₹1,800 lakhs to expand and modernize production capabilities.

2. Working Capital Requirements – ₹2,492 lakhs to support day-to-day operations.

3. General Corporate Purposes to strengthen financial flexibility.

About Studio LSD

Studio LSD Limited, based in Mumbai, is a multimedia production house specializing in original storytelling for television and OTT platforms. Founded by Prateek Sharma and Parth Shah, the company is known for delivering soap operas, episodic dramas, reality shows, and special events. The company focuses on content innovation, creating captivating narratives across genres, while also venturing into intellectual property (IP) ownership models to generate long-term revenue.

For FY 2025, Studio LSD reported a revenue of ₹105.01 crore, reflecting significant growth compared to previous years. The company operates with a pan-India presence, working with talented industry professionals across various segments of scriptwriting, production, post-production, and distribution.

Business Model

Studio LSD operates under two main models:

• Commission-Based Model: Broadcasters and OTT platforms commission shows, pay on a per-episode basis, and retain IP rights. This model provides steady revenue.

• IP Ownership Model: The company develops content independently, retains ownership, and monetizes via licensing, syndication, and brand collaborations. Though riskier, this model ensures higher margins and long-term growth.

Currently, most of its revenue comes from the commission-based model, but the company is investing in IP-driven projects to expand revenue sources.

Industry Overview

The Indian Media and Entertainment (M&E) sector is one of the fastest-growing industries globally. With the rise of digital adoption, increased OTT penetration, and regional language consumption, content demand is at an all-time high. Reports suggest that India’s OTT audience has reached 481 million users, accounting for 34% penetration. By 2026, the OTT segment is expected to grow at 14.1% CAGR, reaching ₹21,032 crore.

India’s broadcasting and digital markets are also expanding rapidly. With a middle-class expansion, higher disposable income, and affordable high-speed internet, demand for original and regional content has surged. This trend is favorable for companies like Studio LSD, which focus on storytelling and audience engagement.

Strengths of Studio LSD

1. Creative Excellence – High-quality and innovative storytelling.

2. In-house Production – End-to-end content development and management.

3. Technological Adaptation – Use of VFX, AR, AI, and modern equipment.

4. Diverse Content Portfolio – From soap operas to OTT-driven projects.

5. Strategic Partnerships – Collaborations with major broadcasters and OTT players.

Risk Factors

Despite its strengths, the company faces challenges:

• High client concentration: A large portion of revenue comes from a few clients.

• Dependence on key contracts: Loss of major deals could hurt revenues.

• Market volatility: Content demand is highly dependent on consumer preferences.

• Competition: The Indian M&E industry is highly competitive with established production houses.

Market Debut Performance

Despite oversubscription, the weak listing at ₹43.20 per share has raised concerns among investors about the company’s valuation and near-term performance. Analysts suggest that the poor listing may be due to the lack of grey market activity, cautious institutional participation, and overall weak investor sentiment in the SME space.

However, long-term investors remain optimistic given the company’s growth in revenues, expansion into IP-based content, and rising demand in the media and entertainment sector.

Conclusion

The Studio LSD IPO listing highlights the unpredictability of the SME IPO market. While retail investors showed enthusiasm with oversubscription, the stock’s 20% fall on listing day reflects valuation concerns and cautious sentiment. The company’s future growth will depend on its ability to expand into IP-driven projects, maintain strong partnerships, and tap into the rapidly growing OTT and digital content market.

For investors, the stock may be a long-term content industry play, but the weak listing signals the need for careful monitoring of the company’s financial performance, client diversification, and execution strategy in the competitive Indian M&E landscape.

The Upcoming IPOs in this week and coming weeks are Abril Paper Tech, Sneha Organics, Sugs Lloyd, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering.

The Current active IPO are Shivashrit Foods, Anondita Medicare, Classic Electrodes (India), ARC Insulation & Insulators, Mangal Electrical Industries, .

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