IGI Logo

Innovatus Entertainment Networks

• Innovatus Entertainment Networks is coming out with an initial public offering (IPO) of 15,48,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 50 per equity share.
• The issue will open for subscription on July 25, 2023 and will close on July 27, 2023.
• The shares will be listed on BSE SME.
• The share is priced 5.0 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Inventure Merchant Banker Services.
• Compliance Officer for the issue is Sonal Gandhi.

Profile of the company

The company offers all the Direct marketing solutions - Management, CRM, B2B and B2C, Activations and Exhibitions. It is a creative platform for complete 'Info-tainment' with a 360 degree solution. It focus on concept development to creative's to a total turnkey presentation and on ground execution. It looks forward to reach a new level of innovation, through integrated media and satisfactory engagement of the audience and carve an exemplary niche in the field of 'Infotainment' and create a unique identity of a dedicated company on the global map.  

It offers a complete range of designing, media and printing services. Its strength is media buying where it understand the clients marketing objective and use the correct media to achieve that objective. It is able to understand the various media available and use the right mix of media and the right prices to the achieve the client’s media objectives. It relies on third parties like material suppliers, designers, media providers and other service providers to help it meet its contractual obligations and provide services as required by its client.

Proceed is being used for:

• Augmenting additional working capital requirements
• Purchase of exhibition related material
• General corporate purposes  

Industry overview

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making significant strides. The increasing availability of fast and cheap internet, rising incomes, and increasing purchases of consumer durables have significantly aided the industry. India’s media and entertainment industry are unique as compared to other markets. The industry is well known for its extremely high volumes and rising Average Revenue Per User (ARPU). This significantly aided the country’s industry and made India leading in terms of digital adoption and provided companies with uninterrupted rich data to understand their customers better. India has also experienced growing opportunities in the VFX sector as the focus shifted globally to India as a preferred content creator.

As per the latest report by the PwC, India’s Media and entertainment Industry is expected to reach Rs 4,30,401 crore ($53.99 billion) by 2026. Advertising revenue in India is projected to reach Rs 394 billion ($5.42 billion) by 2024. Television would account for 40% of the Indian media market in 2024, followed by print media (13%), digital advertising (12%), cinema (9%), and the OTT and gaming industries (8%). The Indian M&E industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate. This can be majorly credited to rising incomes, increasing internet penetration and a growing push toward digital adoption. 

Exhibition is an event / platform for congregation of exhibitors and visitors with an intention to gather information and meet each other to evaluate and explore business opportunities. Business exhibitions and trade shows are exhibitions held during a limited period of time in which a large number of exhibitors display their product/ technologies / business knowhow or other services with the ultimate aim of selling to the trade, industry users and bulk buyers. Exhibitions are normally associated and related to a particular industry or group.  

Pros and strengths

Creative activations and lateral approach: It aims to generate results at pat with the expectation of its clients, through research, compelling creative works and strategic media planning. Its strength lies in creative activations and lateral approach to innovative concepts and their Innovatus Entertainment Networks Draft Prospectus flawless execution. It considers in building long term relationships with its clients. It strives to measure success for its clients through increased brand awareness, impact on sales volume and other parameters mutually agreed with the clients.

Engage Partnership & Sponsorship: The two major benefits of having a partnership or a sponsorship are to defray the costs and boost potential participation. Hence, it always want to consider calling on corporate sponsors to fund a portion of the event or, it try to collaborate with partners who can offer an event venue or manpower to run the event.

Focus on clients: It has built robust relationships with its customers through its ability to provide comprehensive services. Building long term relationships with its clients. It strives to measure success for its clients through increased brand awareness, impact on sales volume and other parameters mutually agreed with the clients. Its success in exhibitions can be attributed to continuous monitoring and improvement of service quality through exhibitor feedback.  

Risks and concerns

Operate in highly competitive: It faces stiff competition from international / local competitors operating in this market and also from the un-organized players, who provide exhibition services similar to those offered by it. Its major competitors are trade bodies and industry associations who conduct exhibitions for the benefit of their respective industries. Many international players have also entered the market through joint ventures with local players or by setting up their own offices in India. Although, there exist no prima facie substantial entry barriers in the exhibition industry, developing new brands has its own risks and lead time. 

Revenues dependent on marketing and advertising budget: The Company largely depends upon revenues of the marketing and advertising budget of companies/exhibitors, who participate in its Events. The marketing and advertising budget may fluctuate depending upon certain general economic and business conditions in the markets, profitability and earnings of its exhibitors. Any reduction in the marketing and advertising budget of companies/ exhibitors may affect the performance of the company.

Events and exhibitions are major source of income: It is dependent on events and exhibitions as the major source of its revenue. Any decrease in ad-spend by its clients or a reduction in effective advertising rates, or the loss of clients due to its inability to attract new advertising customers could have a material adverse effect on its business, results of operations and financial condition. Further, the revenue is also dependent on the quality of its services and preference of advertising clients for one media over another.  

Outlook

The company offers all the Direct marketing solutions - Management, CRM, B2B and B2C, Activations and Exhibitions. It is a creative platform for complete 'Info-tainment' with a 360 degree solution. It offers a complete range of designing, media and printing services. Its strength is media buying where it understand the clients marketing objective and use the correct media to achieve that objective. On the concern side, it faces stiff competition from international / local competitors operating in this market and also from the un-organized players, who provide exhibition services similar to those offered by it. Its major competitors are trade bodies and industry associations who conduct exhibitions for the benefit of their respective industries.

The company is coming out with an IPO of 15,48,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 50 per equity share to mobilize Rs 7.74 crore. On performance, the company’s revenue from operations for the FY 2023 was Rs 1093.93 lakh as compared to Rs 787.90 lakh during the FY 2022 showing an increase of 38.84%. This exhibits the strengthening of business post covid 19 restrictions. Profit after tax increased from Rs 30.19 lakh for the FY 2022 to Rs 48.26 lakh in FY 2023. Going forward, the company’s focused on increasing the number of client relationships and having more number of relationship managers to service these relationships. Its strategy is to increase the number of client relationships and then leverage those client relationships into offering in a whole suite of media products. During downturn of the markets increased number of client relationships will add stability to its earnings. As a part of this it also plan to strengthen its sales team to bring in new client relationships to leverage its existing group offerings.