The Indian arm of London's Alternate Investment Market (AIM)-listed animation and game art company DQ Entertainment made a successful stock exchange debut listing with 69% premium to issue price of Rs 80/share and is currently trading at Rs 111 after hitting a high of Rs 140.
This means a smart profit for a clutch of pre-IPO investors who invested Rs 25.69 crore to pick approximately 5.97% stake (before IPO equity dilution) one month ago. The group of investors was led by IDFC Investment Advisors Limited (IDFC) through its IDFC Hybrid Infrastructure Portfolio. Other investors included some corporate bodies besides high networth investors.
As against the issue price which valued DQ Entertainment (International) at Rs 640 crore, at the current price, the company commands a market cap of Rs 913 crore(~$ 200 million). SBI Capital was the book running lead manager.
DQ Entertainment had raised private equity funding from players like India Value Fund and Peepul Capital, who exited after the firm's AIM listing in 2007. It raised around $56 million through the AIM issue and now joins other AIM-listed Indian firms who are going ahead with issues back home of their Indian subsidiaries or business units. Another such firm is Bollywood producer Eros International Plc which plans to list Eros International Media Limited.