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DQ Entertainment IPO at price band of Rs. 75 to 80, IPO opens on March 8

DQ Entertainment IPO Price

DQ Entertainment (International) Limited, a Hyderabad based animation firm would be coming out with IPO on March 8, 2010. DQ Entertainment said on Thursday that it is planning to raise Rs. 1.28 Billion through an Initial Public Offering (IPO) of 16,048,011 equity shares of Rs. 10 each.

DQ Entertainment Limited IPO is set at a price band of Rs 75-80 per share which would comprise 20% of the post issue capital. The promoters holding would be reduced to 75 percent from the current 94.03 percent after the issue. The company plans to close Initial Public Offering by 10-Mar-2010.

It really needs to be seen how DQ entertainment is able to make profits in-spite of rampant piracy market.

A few facts about DQ Entertainment Limited:

  • It is a fully integrated broad based entertainment group and is a global leader in the creation, production, distribution, licensing and marketing of all forms of entertainment.
  • With a workforce of around 3500 (including permanent and freelancers) and production sales and distribution centers at Hyderabad, Chennai, Mumbai, Kolkata, Manila, Ireland, Paris, Los Angeles and Japan DQ Entertainment is all set to expand further.
  • The company generates more than 70% of its revenues from Europe and the remaining 30% from US.
  • DQ Entertainment currently has an order book of 95 million USD.
  • The previous financial year March 2009 saw a profit of Rs 161 Million from DQ entertainment from the revenue of 1.5 billion Rs.
  • DQ Entertainment is currently involved with brands like Iron Man which is the first 3D animated TV series, third season of Mickey Mouse Clubhouse and is producing properties like Little Prince and Little Nicolas.

Future Plans of DQ Entertainment:

  • The red herring prospects lists a Nasscom-Ernst & Young report which indicates that the current animation industry of around 68 Billion USD is all set to grow with a compounded annual growth of 10% for the next three years atleast. Going by this report the company’s prospects are looking good.
  • DQ Entertainment intends to use the revenue generated from IPO in the following way: (Rs in Millions)
    • Rs 549.58 Cr for IP content creation
    • Rs 392.31 Cr for Development of Infrastructure and Addition facilities at SEZ Unit in Andhra Pradesh.
    • Rs 129.22 Cr for investment in subsidiary DQ Entertainment (Ireland) Ltd.