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UFO Moviez makes tepid debut, lists 4% below issue price

Digital cinema solutions firm UFO Moviez India Ltd’s shares made a tepid debut, listing at Rs 600 each, a 4 per cent discount to the IPO price of Rs 625 on the NSE on Thursday.

Shares of the digital cinema solution provider touched a high of Rs 622.90 intraday and low of Rs 590 each on NSE in weak market, as per the information available with the bourse.

The scrip of the company closed the day at Rs 603.50 a piece, up 0.58 per cent, on NSE in weak Mumbai market.

UFO Moviez is India’s largest digital cinema distribution network and in-cinema advertising platform (in terms of numbers of screens), according to CRISIL. It operates a satellite-based, digital cinema distribution network. It is co-promoted by Sanjay Gaikwad, Narendra Hete and Apollo International.

It had raised about Rs 180 crore (nearly $28.5 million) from a bunch of domestic and foreign investors that came as anchor investors.

The firm had opened its IPO with a price band of Rs 615-625 a share, which allowed it to raise around Rs 420 crore (excluding anchor allotment).

The IPO had got off to a slow start and was covered just 30 per cent at the end of the second day. However, at the close of the issue, it saw bids for twice the number of shares it had floated.

The issue saw both its private equity backers—3i and Providence— besides promoters selling shares.

Providence, which invested in the company in 2011, is the single-largest shareholder, while 3i, which backed UFO Moviez in 2007, is the second-largest equity holder in the firm. While Providence is part exiting, it is not yet clear how much stake 3i is paring in the IPO.

When it had filed its documents last December, the firm had sought to raise up to Rs 750 crore through the offer-for-sale issue. It had later cut this by one-fifth to Rs 600 crore.

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