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Tag: NSE Emerge

  • Bodhi Tree Multimedia’s debut on NSE Emerge to fuel expansion & growth

    Bodhi Tree Multimedia’s debut on NSE Emerge to fuel expansion & growth

    KOLKATA: It is not a common practice for production houses in India to venture into the capital market. But in quite a unique move, content production company Bodhi Tree Multimedia Ltd recently debuted on NSE Emerge. It has already raised Rs 3.71 crore from its SME initial public offering, which will go towards expansion activities and strategic growth, said Bodhi Tree Multimedia managing director Mautik Tolia.

    Started in 2013 by Tolia and Sukesh Motwani, the production house initially focused on general entertainment on TV, and later expanded into other genres and also into digital content. Along with working for major broadcasters, it has produced content for OTT platforms like Voot, Viu.

    Tolia said that they had been considering going public since last year, and the process would have been finished in the last financial year if the Covid2019-induced lockdown had not struck suddenly. Hence, they had to push it back by a couple of months.

    “You are at a point in entertainment industry where you are at an inflection point with digital content, TV content. Moreover, new avenues of content production are emerging. If you want to take advantage of that, this is the right time to focus on accessing the capital market because it is a long-term way for a company to grow. Eventually, if you want to develop your own IP, being listed opens lots of doors for you. It’s a strategic objective, more than anything else,” Tolia explained.

    The company posted Rs 27.45 crore consolidated revenue for FY20. For the first five months of FY21, it has reported Rs 4.86 crore revenue and profit of 0.32 crore. In a filing on the stock exchange, the company has also stated that it intends to utilize the issue proceeds towards working capital requirements, general corporate purpose and meeting the issue expenses.

    Elara Capital VP – research analyst (Media) Karan Taurani also endorsed the decision of getting listed. Noting that content making has, in fact, picked up during Covid period due to increased amount of time spent on TV and digital platforms, Taurani said this has led to greater demand for good content from major broadcasters and OTT players alike. According to him, Bodhi Tree Multimedia is a solid production house which has made quality TV shows and web-series. Hence, Taurani expressed confidence that it will get a good valuation.

    Taurani went on to mention that being platform-agnostic will also work in Bodhi Tree’s favour in a market where most listed content creators churn out shows either for their own channels or OTT platforms. Hence, it will provide multiple opportunities overall, he shared.

  • Bodhi Tree Multimedia enters capital market with IPO

    Bodhi Tree Multimedia enters capital market with IPO

    KOLKATA: Bodhi Tree Multimedia promoted by Sukesh Motwani and Mautik Tolia which produces content for television, films and digital platforms has reported robust performance in FY20. Being one of the few content production companies to get listed in a decade, the company recently entered the capital market through an IPO on NSE Emerge (SME Platform of NSE).

    Despite the pandemic, the company witnessed a turnover of Rs 27.45 crores demonstrating a burgeoning growth. In addition to this, Bodhi Tree Multimedia expects a good FY20-21 with the value of the order book which will be serviced in the coming year.

    Bodhi Tree Multimedia founder director Sukesh Motwani said “The entertainment industry boom with the explosive rise in digital OTT content along with an increasing growth television content gives us an unique position to create rooted Indian content for the Indian as well as global market. It’s the best time to be a content creator.”

     “The entertainment industry has the distinction of not only qualifying as a recession proof sector, but also as a sector with enormous growth potential. As an established player in creating content for television and films and digital platforms, Bodhi Tree Multimedia continues to demonstrate its resilience in a challenging market. Operating in the entertainment industry with a potential to grow exponentially in the years ahead, the company is all geared to capitalize on this exponential growth potential. Amidst the COVID-19 restrictions around the world and the uncertainty in the global economic outlook, we will continue to focus on growing our business profitably and prudently. The outlook for FY21 looks promising with orders in hand, ” Bodhi Tree Multimedia managing director Mautik Tolia said.

    The company’s IPO’s net proceeds will be utilized for meeting the company’s working capital requirements, general corporate purposes and meeting expenses related to IPO.  The company has issued 3.90 lakh equity shares at a price of Rs 95 per equity share. The IPO opened for public subscription on 9 October 2020 and closed on 13 October 2020.

    As an established player at the forefront of creating differentiated and edgy content on television and digital platforms. Bodhi Tree Multimedia is leveraging its brand in the market for entertainment content. The Company has several shows that are at various stages of development, under production and on air with marquee clients in this space.

  • Vertoz shares gain in opening trade

    Vertoz shares gain in opening trade

    MUMBAI: It was a rare sight to witness at the bourse today when Vertoz Advertising became the first programmatic advertising company to be listed on National Stock Exchange this morning. The price for the public issue of 15.84 lakh equity shares was fixed at Rs 108 per share. Within the first 3 hours, the stock skyrocketed 21.6 per cent trading at Rs 129.6 after opening at Rs 116.

    Founded in 2012, Vertoz has offices worldwide with its global headquarter in New York, USA. It offers engaging and innovative advertising and monetisation solutions to clients as a better option to the traditional methods of media buying and selling. The company’s technology, advanced capabilities and programmatic platform makes for a highly scalable software platform that powers and optimises the marketplace for real-time trading of digital advertising inventory between advertisers and publishers.

    Indiantelevision.com got talking to the  company’s founders and CEO Ashish Shah and founders and chairman Hiren Shah where they spoke about the company’s growth, division of funds raised from the IPO, programmatic advertising in India and much more. Excerpts: 

    Why did Vertoz take the IPO route when most agencies prefer private investments or acquisitions?

    Ashish: We believe in doing different things rather than doing things differently. A lot of companies in our sector have gone through a private equity round and we did too had the same option but we chose to have an IPO as it helps in distributing the wealth in a better way. There are a lot of people in the company, investors, M&A, and all of that requires cash. Private equity wouldn’t have helped in solving that problem.

    What was the revenue of the company last year and how much has it grown? What is your projection for next year?

    Hiren: Our net revenue stood at Rs 20 crore in 2016 and at Rs 9 crore in Q1 2017. We are expecting revenue of Rs 30-40 crore in 2018. The way India is growing and with people moving to digital, we are expecting a huge growth in the segment. 

    Will you be looking at acquisitions going forward?

    Hiren: Yes, but we will be looking at acquiring companies and not getting acquired. We have a subsidiary in the US and other European countries for acquiring digital businesses. We will be using the funds raised from this IPO to acquire those businesses. 

    When can we expect that to happen?

    Hiren: Soon! It should happen in the second half of 2018. 

    When will you be listed on NSE completely?

    Hiren: It is mandatory for small and medium-sized enterprises to be listed on NSE Emerge for at least two years or four annual general meetings. Once we are able to comply with that, we will be listed on NSE, maybe in late 2019 or early 2020. 

    How do you intend to use the funds raised for the IPO?

    Hiren: We would be using around 70 per cent of the funds in inorganic growth and acquisition of businesses and the rest 30 per cent at a macro level on working capital of our business.

    Do you think the Indian media industry has understood programmatic advertising and are leveraging it to the best use as opposed to other markets? 

    Hiren: It is a long way to go for India as people here are still not aware about programmatic advertising. They still follow traditional methods of advertising and it was the case with the US as well but they have evolved in programmatic to a greater extent. India on the other hand, still needs to understand the core of it but with prime minister’s Digital India movement, programmatic will see better days. 

    How do you think will programmatic advertising shape up Indian media over the next few years, say by 2020?

    Ashish: India is a growing economy and is rapidly adopting various policies and changes for a future ready industry. We would be able to achieve what western countries have achieved in a quicker time. 

    How much do advertisers spend on programmatic now? How much is it in the west?

    Hiren: Advertisers shell out less than 5 per cent of the advertising spends and a major chunk still goes into traditional media. In western countries, this number is close to 60 per cent.

    When do you think will we be able to use programmatic advertising in radio?

    Hiren: Although programmatic advertising is already happening in radio and television in other counties, it would start in India very soon, maybe by 2019. Some radio players are using programmatic in jingles but that is only limited to online radio. 

    How will programmatic adverting shape up in India going forward?

    Ashish: programmatic is the need of hour and has huge potential in the ad world. Advertisers can take quick decisions on what they should do or change in their marketing communications. Although programmatic advertising will evolve in India, it will also change its form with various technologies coming in place.

    In western countries, in-house teams are created for this. Is it a challenge for agencies to sustain? 

    Ashish: I don’t see it as a challenge for agencies as it is just about economies of scale.Everybody has a room for everything.