Ullu Digital Limited, a domestic over-the-top (OTT) platform, has submitted a draft red herring prospectus (DRHP) for an initial public offering (IPO) to the BSE SME.
The company has suggested issuing up to 62,62,800 new equity shares in order to raise money. Notably, there is no offer for sale (OFS) component in the company’s DRHP.
In the IPO, Ullu hopes to raise between Rs. 135 and Rs. 150 crores, according to a Moneycontrol report. This will put the company’s worth between Rs. 500 and Rs. 570 crore, or $60 and $70 million.
The issue’s book-running lead managers are Skyline Financial Services Ltd. and Narnolia Financial Services Ltd.
The OTT platform intends to use the proceeds from the IPO for working capital requirements, hiring new employees, purchasing foreign shows, modern equipment, and other general corporate purposes.
According to the DRHP, Megha Aggarwal owns 33.25 percent of the business, while Vibhu Agarwal, the company’s founder, holds 61.75% of the shares. Ullu is owned by Zenith Multi Trading DMCC to the tune of 5%.
Ullu’s operations yielded revenue of Rs 58.33 crore and profit of Rs 12.28 crore for the half year ending in September 2023 (Apr-Sep 2023).
Web series, movies, and other content are streamed on Ullu, a membership-based platform. The majority of the company’s income comes from subscription sales.
The company’s subscriber count as of September 2023 is 20,92,975. However, from 27,59,397 subscribers in March 2023, the company’s user base decreased by more than 24%. As of the end of March 2022 and 2021, respectively, the company had approximately 17,70,439 and 11,46,646 subscribers.
From Rs 46.8 crore in FY22 to Rs 93.1 crore in FY23, Ullu’s operating revenue doubled. When compared to FY22, its profits increased 3.87 times to Rs 15.1 crore from Rs 3.9 crore.
Ullu has become another tech company preparing for an upcoming initial public offering. Awfis, Ola Electric, FirstCry, ixigo, and Unicommerce are a few of the companies on the list.
