Sunshine Pictures IPO kicksoff: Should you apply or avoid? Here's what analyst say, check GMP

The initial public offering (IPO) of Sunshine Pictures opens for subscription on Tuesday, August 18. The film-making and distribution player is offering its shares in the range of Rs 342-360 apeice and investors can apply for minimum 41 equity shares and its multiples thereafter. The issue will close for bidding Thursday, August 20.

The IPO of Sunshine Pictures includes a fresh share sale of 48,00,034 equity shares worth Rs 173 crore and an offer-for-sale (OFS) of up to 30,37,157 equity shares worth Rs 109 crore. It is eyeing to raise a total of Rs 282 crore from its IPO. The net proceeds from the issue shall be utilized towards funding working capital requirements and general corporate purposes.

Incorporated in 2007, Sunshine Pictures is a production company engaged in the business of originating, creating, developing, producing, marketing and distributing films, TV serials, and web series. It is a technology-driven content creator specializing in innovative commercial films, covering script development, production, intellectual property creation, rights monetization and distribution.

Ahead of its IPO, Sunshine Pictures raised Rs 84.64 crore from 9 anchor investors as it allocated 23,51,140 equity share for Rs 360 apiece. Its anchor book included names like Innovate Vision, Khandelwal Finance, Arnesta Global Opportunities Fund, Uni Growth Fund, Zeal Global Opportunities Fund, Visionary Value Fun, The Asio Fund VCC Fund, Shine Star Build Cap and LRSD Securities.

For the financial year ended on March 31, 2025, Sunshine Pictures reported a net profit of Rs 40.02 crore, with a revenue of Rs 76.27 crore It clocked a net profit of Rs 34.46 crore with a revenue of Rs 105.80 crore for the financial year 2024-25. At the current valuations, it commands a market capitalization little more than Rs 1,120 crore.

Sunshine Pictures has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation. Retail investors will get 35 per cent of the reservation in the issue. Last heard, it was commanding a grey market premium (GMP) of Rs 68-70 apeice, suggesting listing gains of around 18-19 per cent for investors.

GYR Capital Advisors is the sole book running lead manager of Shankesh Jewellers IPO and Bigshare Services is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Tuesday, August 25. Here's what a host of brokerage firms say about the IPO of Sunshine Pictures:

SBI Securities
Rating: Avoid
Sunshine Pictures's It’s standalone production – ‘The Kerala Story’, emerged as the highest return-on-investment blockbuster in 2023. It has recorded negative revenue, EBITDA and PAT CAGR of 25.4 per cent, 8.6 per cent and 13.4 per cent, respectively over the FY24-FY26 period, given the high uncertainty of project success and working capital requirements, said SBI Securities.

"While the company possesses a list of upcoming projects, the success of the same depends on audience acceptance and box office performance. The issue is valued at FY26 P/E multiple of 27.8 times based on post-issue capital. We recommend investors to 'AVOID' the issue," it adds.

Master Capital Services
Rating: Subscribe for long-term
Sunshine Pictures is positioned to benefit from the growing demand for diverse and digital-first content through its experience in film, television and web series production. Digital media has emerged as the largest revenue contributor. It is supported by rising screen additions, premium cinema experiences and increasing OTT monetization of digital rights, said Master Capital Services.

"Its technology-driven, data-led approach, strong relationships with studios and creative professionals, established content portfolio, Sunshine Music Music and Sunshine Digital (Originals) verticals, and pipeline of six films and two web series provide a platform to participate in the evolving Indian M&E industry. Investors may consider the IPO as a potential long-term investment," it said.

BP Equities
Rating: Avoid
We remain cautious due to the lumpy nature of the business, with revenue and earnings highly dependent on project execution, release schedules and content success, said BP Equities. "While the upcoming pipeline offers growth potential, limited earnings visibility and the inherent unpredictability of individual projects keep the risk-reward unfavourable. We recommend an 'avoid' on the issue," it said.

Ventura Securities
Rating: Subscribe
Sunshine Pictures, founded in 2007, is a Mumbai-based production house with 13 films, two web series and three TV serials, alongside music and digital businesses. Led by promoter and CMD Vipul Amrutlal Shah, the company combines self-financed productions with co-productions and operates an in-house post-production pipeline, said Ventura with a 'subscribe' rating.

Swastika Invesmart
Rating: Neutral
Sunshine's EBITDA margin surged 2,953 bps to 78.65 per cent in FY26 despite a revenue decline. This sharp improvement is mainly due to production costs of unreleased projects being capitalized as inventory, rather than a genuine improvement in operational efficiency. Relative to pure-play listed media peers the operational return ratios and low leverage justify a slight premium, said Swastika.

Cash Flow from Operations (CFO) collapsed to −₹33.21 crore lakhs, revealing severe working capital lock-up and non-cash-backed P&L profits However, the valuation leaves limited margin of safety if content releases face production delays or subdued viewer traction. It is  suitable primarily as a high-risk, tactical exposure for investors looking to participate in content creation, it added with a 'neutral' tag.

SMC Global Securities
Rating: Neutral
Sunshine Pictures is well positioned for medium-term growth, supported by experienced promoters, an established industry track record, a diversified content pipeline and a prudent production model that balances standalone and co-produced projects, said SMC Global Securities.

Expansion across films, web series, music and digital content, along with new-age media opportunities, could broaden revenue streams and improve monetisation. However, earnings remain exposed to unpredictable audience preferences, box-office performance, customer concentration and dependence on creative talent and industry relationships, it adds with a 'neutral' tag.