Thinking Hats Entertainment Solutions IPO Lists at ₹60 Above Issue Price

Thinking Hats Entertainment Solutions Limited, a company specializing in concept development, event design, and content production for various platforms, made a strong debut on the Indian stock market on Thursday, 3rd October 2024, with its shares listing at a significant premium to the issue price on the National Stock Exchange (NSE) SME platform.

Listing Details

• Listing Price: Thinking Hats Entertainment Solutions shares were listed at ₹60 per share on the NSE SME platform, marking a strong start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. Thinking Hats Entertainment Solutions had set its IPO price band from ₹42 to ₹44 per share, with the final issue price being fixed at the upper end of ₹44.
• Percentage Change: The listing price of ₹60 on the NSE SME translates to a premium of 36.36% over the issue price of ₹44.

First-Day Trading Performance

• Opening vs. Latest Price: Following its strong opening, Thinking Hats Entertainment Solutions' share price experienced some volatility. By 10:13 AM, the stock was trading at ₹57, down 5% from its opening price but still 29.55% above the issue price, hitting the lower circuit for the day.
• Market Capitalisation: As of 10:13 AM, the company's market capitalisation stood at ₹71.18 crore.
• Trading Volume: The traded volume was 9.81 lakh shares with a traded value of ₹5.85 crore, indicating significant investor interest on the first day of listing.

Market Sentiment and Analysis

• Market Reaction: The market initially reacted very positively to Thinking Hats Entertainment Solutions' listing, but the stock experienced some selling pressure during early trading.
• Subscription Rate: The IPO was heavily oversubscribed by 322.19 times, with NIIs leading at 356.81 times, followed closely by retail investors at 347.64 times, and QIBs at 67.67 times.
• Price Band: After hitting a high of ₹61, the stock touched its lower circuit of ₹57 (5% below the opening price) during morning trading.

Growth Drivers and Challenges

Expected drivers of future performance:

• Talented team with a successful track record in event management and content creation
• Established connections with key clients and industry figures
• Strong brand recognition in event management and retail visual merchandising
• Growing demand for OTT content production

Potential challenges:

• Highly competitive and fragmented entertainment and event management sector
• Dependence on key clients and OTT platforms
• Potential volatility in project-based revenue streams

Utilisation of IPO Proceeds

Thinking Hats Entertainment Solutions plans to use the funds for:

• Prepayment or repayment of certain loans
• Funding working capital requirements
• General corporate purposes

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased by 20% to ₹2,670.1 lakh in FY2024 from ₹2,227.8 lakh in FY2023
• Profit After Tax (PAT) rose by 54% to ₹309.16 lakh in FY2024 from ₹200.79 lakh in FY2023

As Thinking Hats Entertainment Solutions begins its journey as a listed entity, market participants will closely monitor its ability to leverage its expertise in event management and content production to drive future growth and shareholder value. The strong listing, despite some early volatility, and substantial oversubscription rates suggest positive market sentiment towards the company's prospects in the dynamic entertainment and event management sector.