IPO Details
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IPO Size
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Schedule of Insomnia Media & Content Services IPO
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End date
Allotment of bids
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Listing on exchange
About Insomnia Media and Content Services
The offer consists of a fresh issue component. The fresh issue will include up to 48,00,000 equity shares of face value of ₹10 each. The total number of shares and aggregate amount are yet to be finalised. The price band is TBA. The lot size is TBA.
The IPO opening date is TBA. The closing date is TBA. The listing date is TBA. The allotment date is TBA. The initiation of refunds is TBA. The credit of shares to the demat account will take place on TBA.
Objectives of Insomnia Media and Content Services IPO
- Funding the working capital requirements of the company.
- General corporate purposes.
Insomnia Media and Content Services IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 48,00,000 equity shares of face value of ₹ 10 each |
Offer for Sale | - |
EPS (in ₹) for FY24 | 1,134.89 |
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors (NIIs) | Not less than 15% of the net offer |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
The Indian Media and Entertainment (M&E) industry represents a sunrise sector for the economy that is making significant strides. The increasing availability of fast, affordable internet, rising incomes, and growing consumer durable purchases have significantly aided the sector. India's media and entertainment sector is unique compared with other markets, known for its high volumes and rising Average Revenue Per User (ARPU). The country's entertainment and media industry is expected to see 9.7% annual revenue growth, reaching US$7,360 crore by 2027. The advertising-based video on demand (AVoD) segment is projected to grow at a 24% CAGR, reaching US$260 crore by 2025. Revenue from the Indian video OTT market, dominated by services such as Amazon Prime Video, Netflix and Disney+ Hotstar, is projected to double from US$180 crore in 2022 to US$350 crore by 2027.
Growing mobile and smartphone penetration has boosted adoption of online video viewing in India. Indian Over-The-Top (OTT) platforms have demonstrated significant global growth, achieving a 194% increase in international viewer revenue over recent years. According to PwC's latest report, the Indian OTT video market revenue is projected to double from US$180 crore in 2022 to US$350 crore by 2027.
Company Information
In 2019, Juhi Jubin Mehta founded Insomnia Media and Content Services LLP (earlier known as AVG Value Advisory LLP), established as an integrated media content house in India with activities across intellectual property rights (IPR) creation, content creation, music & audio catalogues, and content licensing and distribution. Together with film-based copyrights and other intellectual property rights, and audio-visual content rights, the brand "Insomnia" is synonymous with creating IPRs which have unique characters and disruptive scripts that both inspire and entertain. Over the years, they have successfully adapted to changing content consumption patterns by expanding into content creation, aggregation, and licensing for broadcasting and streaming on OTT platforms and television channels. They are continuing the expansion into new media platforms.
The IPRs they have successfully created and developed as long-format content in the form of films and assigned to film studios and profitably monetised include the sleeper-hit social comedy Janhit Mein Jaari starring Nushrratt Bharuccha, released in 2022; the critically and commercially acclaimed courtroom drama Sirf Ek Bandaa Kaafi Hain starring Manoj Bajpayee, released in 2023; the social drama Sab Moh Maya Hai starring Annu Kapoor and Sharman Joshi, released in 2023; and the upcoming bilingual Malayalam-Telugu epic action entertainer Vrushabha starring megastar Mohanlal, which is scheduled for release in late 2025.
Not just restricted to long-format content such as films, they also have a music division and have an impressive contract for production and distribution of 300 music videos with a global music distribution giant based in Luxembourg. Over 79 of these music videos have already been released by the distribution company on its Ishtar Music (formerly known as VENUS Music) label.
Strengths of Insomnia Media and Content Services IPO
Strengths of Insomnia Media and Content Services IPO
The company primarily operates on an IPR creation and services-based model, where it provides services to other film studios and established film banners who take on the actual risk of the performance of the said films/web series created from the said IPR. The film production services are provided against watertight contracts with studio partners, and they don't invest in the actual shooting and production of any content until it is pre-sold.
Core expertise in creating IPR for contemporary audiences
The company has demonstrated its core expertise in its ability to identify concepts relevant to contemporary audiences, acquire the rights, develop strong scripts, and convert the said IPs into films and/or music videos. The IP creation revolves around acquisition of life rights/book rights/concept rights (as the case may be), followed by development of concepts, scripts, character sketches, mood boards, and story bibles. The past body of work, including Janhit Mein Jaari or Sirf Ek Bandaa Kaafi Hain, has been appreciated by audiences across India and has been profitable both commercially and creatively.
Regional music
The company has already created an IPR library of over 130 music videos distributed by global music giant Believe International, France. They are also creating a further 170 music videos that will be ready for release in the next 12 months. The music division of IMCS is profitable, and their content is monetised on all major digital streaming platforms and apps, including YouTube, YouTube Music, Spotify, Wynk Music, and JioSaavn, among others. IMCS owns all this IPR in perpetuity. The music catalogue is largely focused on Bhojpuri music and targets the 230 million Bhojpuri-speaking audience that primarily originates in UP-Bihar but is now spread globally.
Risks of Insomnia Media and Content Services IPO
- Failure in sourcing content and adding IPRs :
Acquisition of content is an integral part of their business. Their ability to successfully acquire content depends on their ability to maintain existing relationships and form new ones with industry participants. While they have benefited from long-standing relationships with certain industry participants in the past, there can be no assurance that they will be able to successfully maintain these relationships and continue to have access to content through such means. Their Content Library includes content licensed from third parties on a fixed-term basis. There can be no assurance that, upon expiry or termination of these arrangements, content will be available to them at all or on acceptable financial or other terms. If any such relationship were to be adversely affected, or they are unable to form new relationships or renew these arrangements in a timely manner or at all, or their access to content otherwise deteriorates, or if any party fails to perform under its agreements or arrangements with them, it could have a material adverse effect on their business prospects, financial condition, and results of operations.
- Dependence on studios :
They generate revenues from the exploitation of their content library through some renowned studio partners. There can be no assurance that they shall be able to negotiate favourable commercial terms with the platform owners. Their failure to maintain these relationships with the aforementioned platform owners or to establish and capitalise on new relationships could harm their business or prevent their business from growing, which could have a material adverse effect on their business prospects, financial condition, and results of operations.
- Foreign exchange control regulations :
The company is involved in business transactions with international clients located globally. Their international operations make them susceptible to the risk of currency fluctuations, which may directly affect their operating results. In case they are unable to adhere to the timelines prescribed under the applicable laws or are unable to mitigate the risk of currency fluctuation, it may adversely affect their business, results of operations, financial condition, and cash flows.
Insomnia Media and Content Services Financials
Peer Comparison
| Company Name | Revenue from Operations (₹ Cr) | P/E Ratio | EPS (Basic) (₹) | NAV per share (₹) |
|---|---|---|---|---|
Insomnia Media and Content Services Limited | 22.753 | --- | 1134.89 | 1343.11 |
Balaji Teleflims Limited** | 625.126 | 36.31 | 1.96 | 42.47 |
Saregama India Ltd** | 803.004 | 49.95 | 10.27 | 76.20 |
Anchor Investor Bidding Date: TBA
Registrar: KFin Technologies Limited
Book Running Lead Managers: GYR Capital Advisors Private Limited
Business Model
The company earns its revenue through the following: Insomnia is an all-in-one media house offering a range of services to create an agile ecosystem for entertainment. Their business activities can broadly be divided into: (I) IPR Creation & Development (II) Music & Audio Catalogues (III) Film Production Services (IV) VFX Services.
Company Growth Trajectory
The total income of the company for the fiscal period 2024 was ₹23.42 crores against ₹5.63 crores total income for the fiscal period 2023, representing an increase of 315.71% in total income. This increase was primarily due to the growth in the overall market, the increasing number of paid OTT subscribers, a digital content consumption jump in Tier 2 and Tier 3 markets across India, and the advent of pan-India content where South Indian content is being appreciated by Hindi-speaking markets and vice versa, thereby leading to an increase in market size and resulting in increasing revenue for all players.
Profit After Tax (PAT) for the fiscal 2024 was ₹7.98 crores against profit after tax of ₹2.25 crores in fiscal 2023, representing a 255.41% increase. This was due to the overall improvement in optimisation of costs and enhanced monetisation.
Insomnia Media and Content Services Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 23.42 | 5.63 | 5.28 |
Profit Before Tax (in ₹ crores) | 11.00 | 2.98 | 2.90 |
Profit After Tax (in ₹ crores) | 7.98 | 2.24 | 2.16 |
EPS (Basic) ₹ | 7944.26 | 1873.6 | 2089 |
EBITDA (in ₹ crores) | 12.075 | 2.81 | 2.07 |
Insomnia Media and Content Services Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 11.00 | 2.98 | 2.90 |
Net Cash from Operating Activities (₹ crores) | -6.00 | 4.44 | -2.66 |
Net Cash from Investing Activities (₹ crores) | 0.58 | 0.02 | -0.56 |
Net Cash from Financing Activities (₹ crores) | 5.76 | -4.76 | 3.66 |
Net Cash & Cash Equivalents (₹ crores) | 0.48 | 0.14 | 0.44 |
How to check allotment status of Insomnia Media and Content Services IPO?
Visit the Registrar's Website
To check the IPO allotment status for Insomnia Media and Content Services Limited IPO, visit the official website of KFin Technologies Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps
- Select 'Equity' from the dropdown menu
- Choose 'Insomnia Media and Content Services Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search' Your Insomnia Media and Content Services Limited IPO allotment status will be displayed.
Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Insomnia Media and Content Services Limited IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN Then click 'Submit'. Your Insomnia Media and Content Services Limited IPO bid and allotment details will be displayed.
How to apply for Insomnia Media and Content Services IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Insomnia Media & Content Services IPO FAQs
What is the Insomnia Media and Content Services IPO?
Insomnia Media and Content Services Limited's IPO consists of a fresh issue of up to 48,00,000 equity shares of face value of ₹10 each. The total offer size is up to 48,00,000 equity shares of face value of ₹10 each as well.
Is Insomnia Media and Content Services IPO coming?
Yes, Insomnia Media and Content Services Limited is expected to come up with its IPO soon.
Who is the Chairman of Insomnia Media and Content Services IPO?
Mrs. Juhi Jubin Mehta is the Chairman of Insomnia Media and Content Services Limited.
What is the lot size of shares of Insomnia Media and Content Services IPO?
The company hasn’t given any information on the lot size yet.
