Sunshine Pictures stock disappoints investors despite a positive listing; shares list at 10% premium

Shares of Sunshine Pictures made a positive stock market debut on Tuesday, August 25 as the media and entertainment content maker was listed at Rs 395.90 on NSE, a premium of 9.97 per cent over its issue price of Rs 360. Similarly, the stock settled with a premium of 9.44 per cent over its issue price at Rs 394 on BSE Ltd.

As of the listing price, investors made a profit of nearly Rs 1,470 on every lot alloted to them. However, listing on Sunshine Pictures has been much below the expectations. Ahead of its listing, the company was commanding a grey market premium (GMP) of Rs 65-80, suggesting a listing gain of 17-22 per cent for the investors.

The IPO of Sunshine Pictures ran for subscription between August 18 and August 20. It had offered its shares in the price band of Rs 342-360 per share with a lot size of 41 shares. The company raised a total of Rs 282 crore from its IPO, which included a fresh share sale of Rs 173 crore and an offer-for-sale (OFS) of up to Rs 109 crore.

The issue was overall subscribed a solid 105.81 times, attracting bids worth nearly Rs 20,900 crore via over 34.18 lakh applications. The quota for qualified institutional bidders (QIBs) was subscribed a whopping 123.52 times, while the allocation for non-institutional investors (NIIs) was subscribed 197.04 times. The portion for retail investors was booked 56.60 times.

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.

Brokerage firms mostly had a positive view on the issue but with a word of caution, suggesting it a for long-term risky bet. GYR Capital Advisors was the sole book running lead manager of Sunshine Pictures IPO and Bigshare Services served as the registrar of the issue.