Studio LSD, a Mumbai-based multimedia production house, is all set to launch its Initial Public Offering (IPO) on the NSE SME platform. The company is known for its vibrant and original storytelling across television and OTT platforms. With its pan-India presence, it has collaborated with talented individuals to deliver genre-defining entertainment content that has made a mark with modern audiences.

The IPO opens on August 18, 2025, and closes on August 20, 2025. The allotment date is scheduled for August 21, 2025, and shares are expected to be listed on the NSE SME on or about August 25, 2025. The total issue size is ₹70.13 crore, which includes a fresh issue of ₹56.1 crore and an offer for sale of ₹14.03 crore.

The price band for the IPO has been set at ₹48 to ₹51 per equity share. With this, the company’s market capitalisation at the upper price band is estimated at ₹264.65 crore. The lot size for this IPO is 2,000 shares, and investors need to apply for a minimum of 2 lots (4,000 shares) which amounts to an investment of ₹2,04,000. This makes it suitable for high net-worth retail investors and SME market participants.

The lead manager of the issue is Corpwis Advisors Private Limited, while Purva Sharegistry (India) Private Limited is acting as the registrar. The market maker for this IPO is Rikhav Securities Limited.

Grey Market Premium (GMP)

Currently, the Grey Market Premium (GMP) of Studio LSD IPO is reported at ₹0, which means there are no listing gains being indicated at this stage. The GMP is largely driven by demand and supply in an unregulated market and is often speculative. In this case, no real trading activity has been observed in the grey market, hence no premium is being commanded.

Financial Performance

The company’s revenues from operations have shown steady growth. For FY 2023, revenues stood at ₹4,671.22 lakh, which grew to ₹10,249.48 lakh in FY 2024, and further to ₹10,500.70 lakh in FY 2025. This reflects a consistent upward trajectory.

The EBITDA also improved significantly, from ₹377.97 lakh in FY 2023 to ₹1,484.46 lakh in FY 2024, and further to ₹1,604.28 lakh in FY 2025. The Profit After Tax (PAT) also displayed healthy growth – ₹279.50 lakh in FY 2023, ₹1,090.37 lakh in FY 2024, and ₹1,167.00 lakh in FY 2025. This highlights that Studio LSD has managed to scale operations while maintaining profitability.

On valuation terms, the pre-issue EPS stands at ₹2.85, while the post-issue EPS is ₹2.25 for FY 2024. The pre-issue P/E ratio is 17.89x, and the post-issue P/E ratio is 22.68x, which is significantly higher compared to the industry P/E of 14x. The ROCE for FY 2024 is 57.29%, and the ROE is 53.78%, which reflect a strong operational performance.

However, analysts believe the IPO is fully priced, and given that the GMP indicates no listing gains, short-term investors may not find much value in subscribing purely for listing day profit.

IPO Objectives

The company plans to use the net proceeds of the issue for:

1. Capital Expenditure – ₹1,800 lakh.

2. Working Capital Requirements – ₹2,492 lakh.

3. General Corporate Purposes – balance amount.

This indicates that the funds will primarily be used for business expansion and strengthening day-to-day operations.

Allotment Process

The IPO allotment date is August 21, 2025, and investors can check their allotment status online. The process involves visiting the registrar’s website, selecting Studio LSD IPO from the dropdown, and entering details such as application number, PAN, or DP client ID. The system will then display whether the allotment has been successful.

Analyst Recommendation

Despite strong financial performance and steady growth in revenues and profits, analysts suggest that the IPO is expensive compared to industry peers. The absence of any Grey Market Premium (GMP) further suggests that there may not be substantial listing gains. Therefore, the recommendation for investors is to avoid subscribing for listing gains. Long-term investors who believe in the company’s growth potential in the Indian media and entertainment industry may still consider participation with a long horizon.

Conclusion

Studio LSD’s IPO represents an opportunity to invest in a high-growth creative content company with a proven track record in the Indian entertainment industry. While the financial growth is impressive, the valuation appears stretched. Short-term investors may not benefit from listing day gains, but those with long-term confidence in the sector and the company’s creative capabilities could still see value in subscribing.

The Upcoming IPOs in this week and coming weeks are Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Studio LSD, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure.

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