Sunshine Pictures
IPO Size: Rs. 282 cr
- Fresh Issue of Rs. 173 cr (15% dilution) for Rs. 112 cr working capital
- Offer for Sale (OFS) of Rs. 109 cr by promoter (100% to drop to 75% post IPO)
Price band: Rs. 342-360 per share
M cap: Rs. 1,121 cr (IPO is 25% of m cap)
IPO Date: Tue 18th Aug to Thu 20th Aug 2026, Listing Tue 25th Aug 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Mumbai based Production House
Sunshine Pictures is a 19 year old production house for films, TV shows, web series for OTT of Mr. Vipul Shah. Company has, till date, produced 13 commercial films (7 co-produced and 6 self-produced), 2 web series, 3 TV serials, 1 short commercial film, including recently released Kerala Story 2 and Governor. Ongoing projects comprises films ‘Hisaab’ and ‘Samuk’ both, scheduled for FY27 release, 1 web series for Amazon titled ‘Nanavati vs Nanavati’.
Marquee Project
Company’s most famous and highest grossing film was The Kerala Story, released in May 2023. This film grossed Rs. 147 cr revenue, entirely accounting for FY24 revenue of Rs. 134 cr. Thus, FY24 was company’s highest net profit year in the last 5 fiscals, with Rs. 53 cr PAT.
Unpredictable and Varying Financials
In past 5 years, company’s topline has swung between 27 cr to Rs. 134 cr to Rs. 74 cr, and net profit has dwindled from Rs. 2 cr to Rs. 53 cr to Rs. 40 cr, creating extreme volatility.
Moreover, business requires a lot of working capital. On FY26 revenue of Rs. 74 cr, debtors stood at Rs.67 cr whereas inventory was at Rs. 75 cr, as of 31.3.26.
In last 18 years of existence, company’s net worth is at Rs. 145 cr (primarily Kerala Story profit), whereas it needs Rs. 173 cr in fresh issue to fund future growth. Thus, business’ requirement of upfront and large capital, along with future revenue being unpredictable makes fundamentals weak.
Micro-Cap Film Production House
M cap of Rs. 1,121 cr implies a PE multiple of 24x on FY26 EPS of Rs. 15.2. Even if a rough 20% growth is assumed for FY27E, PE of 20x for current year is quite high for a business undertaking 3-4 projects with unpredictable profits. Media and film production business has seldom rewarded stock market investors.
