Thinking Hats Entertainment Solutions (THES) stands out as India's leading Entertainment and Experiential Marketing Company, specializing in Content Development, Intellectual Property Curation, and Tech-Centric Product Development. Their offerings span a range of sectors including Film Production, Event Curation and Management, and Content Creation for Streaming Platforms. This multifaceted approach enables THES to deliver a comprehensive experiential marketing strategy that resonates across various consumer touchpoints.

The IPO aims to raise ₹15.08 Crores, comprising a Fresh Issue of 34.29 Lakh Shares. The shares are priced within a band of ₹42 to ₹44, with a minimum lot size of 3,000 shares, leading to a minimum investment requirement of ₹1,32,000 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,64,000 for two lots (6,000 shares).

HORIZON MANAGEMENT PRIVATE LIMITED acts as the book-running lead manager, with MAS SERVICES LIMITED serving as the registrar for the issue. Giriraj Stock Broking Private Limited is the designated Market Maker for this IPO.

IPO Details

Allotment Date: The allotment is expected to be finalized on or about September 30, 2024, with shares tentatively set to list on the NSE SME by October 3, 2024.

GMP Insights: The Grey Market Premium (GMP) is projected to range between ₹20 and ₹26, indicating a favorable sentiment among market participants. However, investors are cautioned that GMP does not always reflect genuine market conditions and should not be solely relied upon for investment decisions.

Financial Performance

A closer look at the financial metrics of Thinking Hats Entertainment Solutions reveals a robust performance trajectory:

Revenue for FY24: ₹2,670.12 Lakhs

Revenue for FY23: ₹2,227.80 Lakhs

Revenue for FY22: ₹11,245.20 Lakhs (noting a significant drop)

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for FY24 stands at ₹499.58 Lakhs, with previous figures of ₹299.93 Lakhs in FY23 and ₹54.04 Lakhs in FY22.

Furthermore, the Profit After Tax (PAT) showcases steady growth:

FY24: ₹309.16 Lakhs

FY23: ₹200.79 Lakhs

FY22: ₹37.21 Lakhs

Valuation Metrics

For the Thinking Hats Entertainment Solutions IPO, the valuation appears favorable. The company is issuing shares at a pre-issue EPS of ₹3.57 and a post-issue EPS of ₹2.47. The pre-issue P/E ratio is noted at 12.32x, while the post-issue P/E ratio is 17.81x, juxtaposed against an industry P/E ratio of 16.00x.

Return on Capital Employed (ROCE) for FY24 stands impressively at 29.37%, and Return on Equity (ROE) is 28.11%. These metrics suggest that the IPO is attractively priced, considering industry standards.

Investment Consideration

Given the positive financial outlook and strong market sentiment reflected in the Grey Market Premium, analysts recommend that investors apply for the Thinking Hats Entertainment Solutions Limited IPO, anticipating potential listing gains of 54% to 60%.

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