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The Rs 600-crore initial public offering (IPO) of UFO Moviez India saw twice the demand compared to the number of shares on offer. The 6.8-million share offering recorded 13.4 million bids, most of which were from institutional investors. A day before its IPO was launched, the digital movie distribution firm raised Rs 180 crore from 10 anchor investors.
The IPO price band was Rs 615-625 a share. While the qualified institutional category was subscribed 4.4 times, the high net worth investors segment was subscribed 1.2 times. The category for retail investors remained marginally undersubscribed.
Anchor investors included Reliance Mutual Fund, SBI Mutual Fund, Pinebrige Global Funds and Bharti Axa Life Insurance. Though such investors are given allotment before the issue is open to the public, their shares are subject to a lock-in period.
Through the IPO, private equity companies 3i and Providence, along with the promoters, offload a portion of their holdings.
UFO Moviez has a share of about 50 per cent in the digital distribution business. Its revenue sources include distribution fee, rentals and in-cinema advertising. For FY14, its operating cash flow stood at Rs 120; for the first nine months of FY15, it was Rs 69 crore. Axis Capital and Citigroup Global Markets were the investment bankers for the UFO Moviez IPO..
