Studio LSD Makes Weak Debut with 20% Discount

Studio LSD Limited, the multimedia production house specializing in content for television and OTT platforms, made a weak debut on NSE SME on August 25, 2025. After closing its IPO bidding between August 18-20, 2025, the company commenced trading with a significant 20% discount at ₹43.20, falling short of market expectations and reflecting cautious investor sentiment towards the media production sector.

Studio LSD Listing Details

Studio LSD Limited launched its IPO at ₹54 per share with a minimum investment of 4,000 shares costing ₹2,16,000. The IPO received a moderate response with a subscription of 3.23 times - retail investors leading at 4.58 times, NII at 1.25 times, and QIB at 1.00 times, indicating strong retail interest despite weak listing performance.

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First-Day Trading Performance Outlook

Listing Price: The Studio LSD share price opened at ₹43.20 on NSE SME, representing a discount of 20% from the issue price of ₹54, delivering disappointing losses for investors and falling significantly short of market expectations.

Growth Drivers and Challenges

Growth Drivers:

• Comprehensive Production Capabilities: Full-service multimedia production house offering concept development, scriptwriting, line production, post-production services, and distribution support for television and OTT platforms.
• Strong Financial Metrics: Outstanding ROE of 53.78%, impressive ROCE of 57.29%, healthy PAT margin of 11.17%, and solid EBITDA margin of 14.85% indicating operational efficiency.
• Experienced Management: Industry expertise in content creation with comprehensive capabilities covering all aspects from development to distribution in the competitive media landscape.

Challenges:

• Modest Revenue Growth: Revenue increased by only 2% to ₹105.01 crore in FY25, indicating limited market expansion and competitive pressures in the fragmented media production industry.
• Small Scale Operations: Relatively small revenue base and limited employee count of 16 potentially restricting competitive positioning against larger production houses.
• High Valuation Concerns: Post-IPO P/E ratio of 24.01 and Price to Book Value of 8.02 indicating aggressive pricing that contributed to poor listing performance.

Utilisation of IPO Proceeds

• Working Capital Requirements: ₹27.40 crore for funding working capital needs supporting content production and business operations in the multimedia production sector.
• Capital Expenditure: ₹18 crore for capital expenditure requirements enhancing production capabilities and technology infrastructure for content creation.
• General Corporate Purposes: ₹8.50 crore for general corporate purposes supporting business operations and strategic initiatives.

Financial Performance of Studio LSD

• Revenue: ₹105.01 crore for FY25, showing modest growth of 2% from ₹102.49 crore in FY24, reflecting limited expansion in the competitive media production market. 
• Net Profit: ₹11.67 crore in FY25, representing growth of 7% from ₹10.90 crore in FY24, indicating stable operational performance despite modest revenue growth. 
• Financial Metrics: Exceptional ROE of 53.78%, impressive ROCE of 57.29%, solid RoNW of 53.78%, healthy PAT margin of 11.17%, robust EBITDA margin of 14.85%, high Price to Book Value of 8.02, and market capitalisation of ₹280.22 crore.