Ullu, an Indian Over-The-Top (OTT) media streaming platform known for its edgy content has filed its preliminary draft papers with the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO).
IPO Details Funding Objectives
The IPO, as outlined in the Draft Red herring Prospectus (DRHP), involves a fresh issue of upto 62,62,800 equity shares with a face value of Rs 10 each.
There is no offer-for-sale (OFS) component in this IPO and Ullu Digital has set aside 3,15,600 equity shares with a face value of Rs 10 specifically for the market maker in the issue.
Funding Objectives
The company aims to raise funds for various purposes, including the production of new content, acquisition of international shows, procurement of state-of-the-art equipment, staff recruitment, working capital needs, and other general corporate requirements. The net proceeds from the IPO will play a crucial role in supporting Ullu Digital's expansion plans.
Listing Plans
Ullu Digital has set its sights on the BSE SME platform for the listing of its shares. If approved, this move will mark a significant development in the SME IPO landscape, with the company aiming to become the largest SME IPO to date.
Financial highlights
As per the annual financial statement submitted to the Registrar of Companies, the OTT platform reported a significant growth. The revenue from operations doubled, reaching Rs 93.1 crore in the fiscal year ending March 2023, marking substantial growth from the Rs 46.8 crore reported in the previous fiscal year, FY22. Similarly, the platform reported nearly a fourfold surge in profits during this period.
About the company and its ownership
Ullu is a subscription-based platform that streams web series, movies, and various content types. The company relies solely on its subscription service as its primary source of revenue. According to DRHP data filed, Vibhu Agarwal, the founder and CEO, owns approximately 61.75 per cent of the company, while the remaining 33.25 per cent ownership belongs to his wife, Megha Agarwal.
The OTT platform provides subscription offers with varying durations, including 7-day, 1-month, 3-month, and one-year plans. Subscribers can choose from different packages, with rates ranging from Rs 99 to Rs 594.
