Connplex Cinemas Makes 10% Premium Debut, IPO Subscribed 35.67×

Connplex Cinemas Limited, the entertainment company operating "Smart Cinemas" across India, made a solid debut on NSE SME on August 14, 2025. After closing its IPO bidding between August 7-11, 2025, the company commenced trading with a 10% premium at ₹195, meeting market expectations and reflecting strong investor confidence in the entertainment sector.

Connplex Cinemas Listing Details

Connplex Cinemas Limited launched its IPO at ₹177 per share with a minimum investment of 1,600 shares costing ₹2,83,200. The IPO received an exceptional response with a subscription of 35.67 times - NII leading at 49.75 times, QIB at 44.21 times, and individual investors at 24.75 times, indicating overwhelming investor interest across all categories in the cinema exhibition business.

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First-Day Trading Performance Outlook

Listing Price: The Connplex Cinemas share price opened at ₹195 on NSE SME, representing a premium of 10.17% from the issue price of ₹177, delivering solid gains for investors and meeting market expectations before settling at ₹187 later in the session.

Growth Drivers and Challenges

Growth Drivers:

Exceptional Financial Growth: Revenue surged by 59% to ₹96.78 crore in FY25 with PAT jumping dramatically by 365% to ₹19.01 crore, reflecting strong demand for cinema entertainment and operational efficiency improvements.

Diversified Cinema Formats: Offers Express, Signature, and Luxuriance formats catering to diverse audience preferences across Tier-I, Tier-II, and Tier-III cities, maximising market reach and revenue potential.

Strong Franchise Model: Robust franchisee support system with quick setup processes enabling rapid expansion and revenue sharing from screenings, food and beverages, and advertising opportunities.

Strategic Market Positioning: Focus on emerging markets with strategic locations and advanced technology integration, providing competitive advantages in the entertainment sector.

Challenges:

Profit Sustainability Concerns: A Sudden surge in the bottom line from ₹4.09 crore in FY24 to ₹19.01 crore in FY25 raises questions about the sustainability of current profit levels in the competitive entertainment industry.

High Valuation Metrics: Price to Book Value of 45.62 and post-IPO P/E ratio of 17.78, indicating aggressive pricing that may limit short-term appreciation potential for investors.

Small Scale Operations: Relatively small revenue base of ₹96.78 crore and limited employee count of 96, potentially restricting competitive positioning against larger cinema chains.

Utilisation of IPO Proceeds

Working Capital Requirements: ₹37.63 crore for funding working capital requirements supporting inventory management and business operations in the entertainment sector.

Equipment Purchase: ₹24.44 crore for the purchase of LED screens and projectors, enhancing cinema technology capabilities and viewer experience across locations.

Corporate Office: ₹14.79 crore for purchase of corporate office space, improving operational infrastructure and administrative capabilities for business expansion.

Financial Performance of Connplex Cinemas

Revenue: ₹96.78 crore for FY25, showing exceptional growth of 59% from ₹60.83 crore in FY24, reflecting strong recovery and expansion in the cinema exhibition business. 

Net Profit: ₹19.01 crore in FY25, representing a remarkable growth of 365% from ₹4.09 crore in FY24, indicating substantial operational improvements and margin expansion. 

Financial Metrics: Exceptional ROE of 127.28%, impressive ROCE of 98.25%, low debt-to-equity ratio of 0.03, strong RoNW of 77.78%, healthy PAT margin of 19.88%, robust EBITDA margin of 27.48%, high Price to Book Value of 45.62, and market capitalisation of ₹338.07 crore..