KOLKATA: It is not a common practice for production houses in India to venture into the capital market. But in quite a unique move, content production company Bodhi Tree Multimedia Ltd recently debuted on NSE Emerge. It has already raised Rs 3.71 crore from its SME initial public offering, which will go towards expansion activities and strategic growth, said Bodhi Tree Multimedia managing director Mautik Tolia.
Started in 2013 by Tolia and Sukesh Motwani, the production house initially focused on general entertainment on TV, and later expanded into other genres and also into digital content. Along with working for major broadcasters, it has produced content for OTT platforms like Voot, Viu.
Tolia said that they had been considering going public since last year, and the process would have been finished in the last financial year if the Covid2019-induced lockdown had not struck suddenly. Hence, they had to push it back by a couple of months.
“You are at a point in entertainment industry where you are at an inflection point with digital content, TV content. Moreover, new avenues of content production are emerging. If you want to take advantage of that, this is the right time to focus on accessing the capital market because it is a long-term way for a company to grow. Eventually, if you want to develop your own IP, being listed opens lots of doors for you. It’s a strategic objective, more than anything else,” Tolia explained.
The company posted Rs 27.45 crore consolidated revenue for FY20. For the first five months of FY21, it has reported Rs 4.86 crore revenue and profit of 0.32 crore. In a filing on the stock exchange, the company has also stated that it intends to utilize the issue proceeds towards working capital requirements, general corporate purpose and meeting the issue expenses.
Elara Capital VP – research analyst (Media) Karan Taurani also endorsed the decision of getting listed. Noting that content making has, in fact, picked up during Covid period due to increased amount of time spent on TV and digital platforms, Taurani said this has led to greater demand for good content from major broadcasters and OTT players alike. According to him, Bodhi Tree Multimedia is a solid production house which has made quality TV shows and web-series. Hence, Taurani expressed confidence that it will get a good valuation.
Taurani went on to mention that being platform-agnostic will also work in Bodhi Tree’s favour in a market where most listed content creators churn out shows either for their own channels or OTT platforms. Hence, it will provide multiple opportunities overall, he shared.
