Phantom Digital Effects, the company behind the VFX of Bahubali and RRR, to launch Rs 29.10 crore IPO. Here are the details

Phantom Digital Effects Limited is set to start its IPO process between October 12 and October 14, 2022, to raise about Rs 29.10 crore. Here's more about the IPO, what the company does and what its financials look like.

First, the important details about Phantom's IPO:

• IPO size: Fresh issue worth Rs 25.08 crore and sale of existing shares worth Rs 4.02 crore
• IPO share price range: Rs 91 to 95 per share
• Number of shares you need to buy when you subscribe for 1 lot: 1200 shares 
• The minimum investment for a retail investor (like you and me): 1 lot - Rs 114,000
• Maximum investment for a retail investor: 1 lot - Rs 114,000.  
• 50% of the IPO quota is reserved for Qualified Institutional Buyers (QIB) ie banks and mutual funds, 15% is reserved for High Net-worth Individuals (HNIs) and 35% is for us; ie retail-category investors. 

Second, the IPO's important dates:

• The IPO process begins on October 12, 2022 
• The IPO closes on October 14, 2022
• The allotment will be decided on October 19, 2022
• If you are not allotted shares, your money will be refunded on October 20, 2022
• If you are allotted shares, they will be credited to your Demat account by October 21, 2022
• The IPO will list on NSE's Small and Medium Exchange on October 25, 2022.

What does Phantom Digital do? Phantom Digital Effects Limited is a full-fledged creative VFX studio that provides high-end visual effects solutions for commercials, feature films, and Web series globally. It is a TPN Certified studio (Trusted Partner Network) that began its operations in 2016 and now operates in US and Canada. PhantomFX offers a wide range of VFX services that look like :

• Completing a Shot with final compositing,
• Creating 3D elements,
• photoreal creatures, and environments,
• Rig/Wire removal,
• paint cleanup,
• rotoscope,
• 3D animation (storyboard, animation),
• Pre-visualization of game cinematics,
• Fire/water Fx and other natural phenomena 3D ride animation.

Some of the recent Indian projects & international projects that PDEL has executed successfully include- Vikram, RRR, Beast, Robot 2.0, Minnal Murali, Bahubali 1 and 2, Puli (South), Avengers, Superman and Lois, Transformers, etc.

The company has two studios located in Mumbai and Chennai. Phantom is well-equipped with advanced technology, and has experienced promoters and a technically sound Operation Team. 

Why does Phantom Digital need an IPO? Phantom plans to use the IPO proceeds towards:

• Capital expenditure to set up studios (Rs 17.37 crore)
• General corporate purposes (Rs 7.71 crore)

The company's financial health: (Rs in lakhs)

Conclusion: Phantom seems to have seen an increase in revenues and assets over the years and quite a substantial increase in profits in the year ending March 2022 and for the first quarter of FY 2023. But past trends do not dictate sustainable future possibilities, and hence a possible investment needs an even further study that includes a view of experts. 

Have you thought of having a VFX company in your portfolio?