New Delhi, Aug 25 (HS): Multimedia production house Studio LSD, known for creating original content for TV and OTT platforms, made a disappointing debut on the stock market today, leaving IPO investors in the red.

The company’s shares, issued at ₹54 under its IPO, got listed on the NSE SME platform at ₹43.20, marking a steep 20% discount. Heavy selling pressure post-listing dragged the stock further down to ₹41.05, hitting the lower circuit within hours. As a result, investors suffered a first-day loss of nearly 23.98% on the issue price.

Studio LSD had launched its ₹74.25 crore IPO between August 18-20, which received a lukewarm response and was overall subscribed 2.35 times. Qualified Institutional Buyers subscribed 1.001 times, Non-Institutional Investors 1.02 times, while Retail Investors showed stronger interest at 3.26 times. The IPO involved fresh equity shares worth ₹59.40 crore along with an Offer for Sale of 27.50 lakh shares at a face value of ₹2. The proceeds are earmarked for capex, working capital, and general corporate purposes.

On the financial front, the company claimed strong growth momentum in its prospectus. Net profit rose from ₹2.79 crore in FY23 to ₹10.90 crore in FY24, and further to ₹11.67 crore in FY25. Revenues showed consistent expansion, climbing from ₹46.71 crore in FY23 to ₹102.49 crore in FY24, and marginally higher at ₹105.01 crore in FY25.

Significantly, the company also highlighted its debt-free status. While it had a small debt of ₹6 lakh at the end of FY23, Studio LSD became completely debt-free from FY24 onwards and maintained the same status as of FY25.

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Hindusthan Samachar / Jun Sarkar