Studio LSD Limited, a Mumbai-based media and entertainment company best known for its original storytelling in television and OTT formats, has opened its ₹70.13 crore SME IPO, attracting strong attention from investors in the first two days of bidding. According to the NSE SME platform, the issue has already been subscribed 1.74 times as of 11:30 AM on Day 2 (19 August 2025).

The IPO subscription window opened on August 18, 2025, and will close on August 20, 2025. This IPO is a Book Built Issue, consisting of a Fresh Issue of 110 lakh equity shares (₹56.10 crore) and an Offer for Sale (OFS) of 27.50 lakh shares (₹14.03 crore) by existing shareholders.

IPO Highlights

Corpwis Advisors Pvt Ltd is the Book Running Lead Manager, while Purva Sharegistry (India) Pvt Ltd is acting as the registrar to the issue. Rikhav Securities Ltd is the market maker for the IPO.

Company Overview

Founded in Mumbai, Studio LSD is known for creating high-engagement fiction content across leading Indian television channels and OTT platforms. The company collaborates with writers, directors, and creative partners across India to produce original content in multiple genres including drama, romance, thriller, and biopics.

Key promoters Prateek Sharma and Parth Shah have a strong track record in producing content that resonates with the modern Indian audience and is popular among younger, digitally-native viewers. The company’s growing library of intellectual property gives it long-term monetisation opportunities through distribution, syndication and repeat streaming.

Financial Performance

Studio LSD has posted steady and consistent financial growth over the last three years:

The high Return on Equity (ROE) and Return on Capital Employed (ROCE) underscore efficient capital utilisation. However, the post-issue P/E of 22.68×—significantly higher than the industry average of 14×—indicates that the IPO is fully priced at current valuation.

Use of Proceeds

The company intends to deploy the net proceeds toward:

• ₹18 crore for capital expenditure, to upgrade production equipment and studio infrastructure

• ₹24.92 crore for working capital requirements

• The remaining funds will be used for general corporate purposes

Grey Market Premium (GMP) and Listing View

The current Grey Market Premium (GMP) for Studio LSD IPO is ₹0, indicating no expected listing premium in unofficial markets. This suggests a neutral sentiment among informal investors and implies that the stock may list at par with the issue price unless subscription momentum improves significantly on the final day.

Conclusion

The Studio LSD IPO has seen a healthy subscription so far, driven by the company’s strong financial performance and rising demand for made-for-OTT content in India. However, the IPO is fully valued, and the current GMP is flat, signalling limited near-term listing upside.

Investors with a long-term view on the Indian media and entertainment sector and higher risk appetite may consider this IPO, given the company’s strong ROE, scalable business model and expanding content portfolio.
For short-term or listing gains, conservative investors may choose to avoid, particularly as the SME segment can be more volatile post-listing.

The Upcoming IPOs in this week and coming weeks are Shivashrit Foods, ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Studio LSD.

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