B.A.G. Convergence Makes Modest Debut with 21.90% Premium, Lists at ₹106.05 Against Weak Subscription

B.A.G. Convergence Limited, the digital media and content production company offering technical assistance and production services for television channels and websites with presence across YouTube, Facebook, Instagram, and Connected TV platforms, made a modest debut on NSE SME on October 8, 2025. After closing its IPO bidding between September 30-October 3, 2025, the company commenced trading with a 16.09% premium opening at ₹101 and rose to ₹106.05 with gains of 21.90%.

B.A.G. Convergence Listing Details

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B.A.G. Convergence Limited launched its IPO at ₹87 per share with a minimum investment of 3,200 shares costing ₹2,78,400. The IPO received weak response with a subscription of just 1.38 times - individual investors at 0.83 times, NII at 2.63 times, and QIB at 1.38 times.

First-Day Trading Performance Outlook

Listing Price: B.A.G. Convergence share price opened at ₹101 representing a premium of 16.09% from the issue price of ₹87, and rose to ₹106.05, delivering modest gains of 21.90% for investors reflecting positive market sentiment towards the digital media sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Digital Presence: Multi-platform content distribution across website news24online.com, YouTube, Facebook, Instagram, and Connected TV partnership with Samsung through app preinstallation, plus part of legacy B.A.G. Network with decades of broadcasting experience.
• Advanced Technology Integration: AI-driven solutions for content optimization, cloud-based broadcasting infrastructure, high-definition and 4K content production capabilities, and OTT streaming services ensuring wider digital reach.
• Strong Profitability Metrics: Exceptional PAT margin of 25.37%, outstanding EBITDA margin of 39.04%, moderate debt-to-equity ratio of 0.57, and impressive RoNW of 40.96% demonstrating strong operational efficiency.

Challenges:

• Aggressive Valuation Metrics: Alarming price-to-book value of 18.13x and post-issue P/E of 19.62x appearing fully priced despite strong margins, operating in highly competitive digital media field with numerous regional and national players.
• Limited Operating Scale: Small revenue base of ₹35.85 crore and workforce of just 87 employees indicating limited operational scale requiring significant scaling to maintain growth trajectory and justify premium valuation.

Utilisation of IPO Proceeds

• Business Expansion: ₹13.49 crore for expansion of existing business enhancing production capabilities and digital infrastructure across multiple platforms.
• Content Development: ₹13.30 crore for acquisition and production of content strengthening content library and competitive positioning in digital media space.
• Brand Building: ₹5.00 crore for brand building expenses enhancing market visibility and audience engagement across television, digital, and OTT platforms.
• General Corporate Purposes: Supporting business operations and strategic initiatives for sustained growth in competitive digital media segment.

Financial Performance of B.A.G. Convergence

• Revenue: ₹35.85 crore for FY25, showing steady growth of 18% from ₹30.33 crore in FY24, reflecting consistent market demand for digital content production services.
• Net Profit: ₹9.41 crore in FY25, representing solid growth of 17% from ₹8.05 crore in FY24, demonstrating operational efficiency and strong pricing power with exceptional profitability margins.
• Financial Metrics: Outstanding RoNW of 40.96%, moderate debt-to-equity ratio of 0.57, exceptional PAT margin of 25.37%, outstanding EBITDA margin of 39.04%, alarming price-to-book value of 18.13x, and estimated market capitalisation of ₹225.03 crore.