Ullu Digital Files Draft Papers For INR 135-150 Cr IPO

OTT streaming platform Ullu Digital has filed its draft red herring prospectus (DRHP) with the  BSE SME for an initial public offering (IPO).

As per the draft papers, the company’s IPO comprises a fresh issue of 62.63 Lakh shares but has no offer for sale (OFS) component.

As per a Moneycontrol report, Ullu Digital is looking to raise INR 135-INR 150 Cr via the IPO, which, if approved, would become the biggest SME IPO till date.

The platform plans to use the net proceeds raised via the IPO to meet its expenses for production of new content, purchase of international shows, tech investment, and to meet the working capital requirements.

The latest SME IPO draft filing by a digital company comes at a time when the SME IPOs have picked pace significantly in India in the last two years. Last year, blockchain and IT development startup Yudiz Solutions got listed at over a 12% premium on the NSE SME platform.

In 2022, drone startup DroneAcharya Aerial Innovations got listed on the BSE SME platform at almost a 90% premium to its issue price.

Fintech SaaS company Trust Fintech Limited also filed its DRHP with NSE Emerge earlier this week.

Ullu Digital, owned by Vibhu Agarwal and his wife Megha Agarwal, is a Mumbai-based OTT platform images in distribution, promotion, exhibition, marketing and delivery of various content on its digital platform and app, Ullu. 

As an OTT platform offering web series, short films, and shows, the company competes against the likes of Zee5, Hoichoi, as well as Netflix, Amazon’s Prime Video, among several others.

As per the company’s DRHP, its founder Vibhu Agarwal holds a 61.75% stake in Ullu Digital while Megha Aggarwal owns 33.25% of the company. 

Ullu’s operating revenue doubled to INR 93.1 Cr in FY23 from INR 46.8 Cr in the previous fiscal year. Its profits jumped to INR 15.1 Cr in the reported period from INR 3.9 Cr in FY22.