Homegrown over-the-top (OTT) platform Ullu Digital Limited has filed a draft red herring prospectus (DRHP) with the BSE SME for an initial public offering (IPO).
The company has proposed to raise funds via fresh issue of up to 62,62,800 equity shares. Notably, the company’s DRHP doesn’t have any offer for sale (OFS) component.
As per Moneycontrol report, Ullu plans to raise around Rs 135-150 crore in the IPO. This will value the company around Rs 500-570 crore or $60-70 million.
Narnolia Financial Services Ltd and Skyline Financial Services Ltd are the book-running lead managers of the issue.
The OTT platform plans to deploy the IPO proceeds for the production of new content, purchase of international shows, purchase of state-of-the-art equipment and hiring of staff, working capital requirement and other general corporate purposes.
As per the DRHP, founder of the company Vibhu Agarwal commands 61.75% shares while Megha Aggarwal owns 33.25% of the company. Zenith Multi Trading DMCC has a 5% stake in Ullu.
For the half year ending September 2023 (Apr-Sep 2023), Ullu generated Rs 58.33 crore revenue from operations with a profit of Rs 12.28 crore.
Ullu is a membership-led platform which streams web series, movies, and other forms of content. The company earns the majority of its revenue from the sale of subscriptions.
As of September 2023, the company has 20,92,975 subscribers. However, the user base of the company declined over 24% from 27,59,397 subscribers during March 2023. The company had around 17,70,439 and 11,46,646 subscribers at the ends of March 2022 and 2021, respectively.
During FY23, Ullu’s revenue from operations grew two-fold to Rs 93.1 crore as compared to Rs 46.8 crore in FY22. Its profits jumped 3.87X to Rs 15.1 crore in FY23 as compared to Rs 3.9 crore in FY22.
Ullu has joined the list of tech-companies that are planning their public listing soon. The list includes ixigo, Unicommerce, Ola Electric, Awfis, and FirstCry among others.
