Ullu Digital has submitted its initial paperwork to SEBI for an IPO( Initial Public Offering). The SME’s IPO includes a fresh issue of up to 62,62,800 equity shares valued at ₹10 each, as per its Draft Red Herring Prospectus (DRHP).
The IPO lacks an offer-for-sale (OFS) portion. Ullu Digital allocated 3,15,600 equity shares valued at Rs. 10 each for the market maker in the offering.
The Mumbai-based OTT platform intends to use IPO proceeds for creating new content, buying international shows, acquiring modern equipment, staffing, working capital, and general corporate needs. Its shares are slated for listing on the BSE SME platform.
The SME IPO will set aside at least 35% of shares for retail individual investors, at least 15% for non-institutional investors, and a maximum of 50% for qualified institutional buyers, with 5% designated for mutual funds.
Narnolia Financial Services Ltd serves as the book-running lead managers, while Skyline Financial Services Ltd acts as the registrar for the public issue. The company has not yet determined the price range for the issue. Ullu Digital stated in the DRHP that the price band’s upper limit, beyond which the offer price and anchor investor offer price will not be finalized, and no bids will be accepted, must be at least 105% of the floor price.
According to the DRHP, Vibhu Agarwal, the founder of Ullu Digital, holds 61.75% of the shares, while Megha Aggarwal owns 33.25%. Additionally, Zenith Multi Trading DMCC holds a five percent stake in Ullu. Both the Agarwals are also the promoters of the company.
Comprehensive Overview of the Ullu App:
- The Ullu app offers web series, short films, and shows.
- Owned by Vibhu Agarwal and his wife Megha Agarwal, the company plans to allocate Rs 30 crore for new content production, Rs 20 crore for acquiring international shows, and Rs 15 crore for technology investment.
- Additionally, Rs 50 crore will be utilized for meeting the company’s working capital needs.
- Vibhu and Megha Agarwal hold a 95 percent stake in Ullu, while the remaining 5 percent is owned by public shareholder Zenith Multi Trading DMCC.
- Narnolia Financial Services serves as the merchant banker for the issue.
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