IPO Alert: DQ Entertainment IPO Opens Today

In the continuing flurry of new IPO’s hitting the Indian Stock Markets, here is one more fresh IPO listing up for grabs.

Opening today, DQ Entertainment IPO looks promising for various reasons.But, lets get down to the basics first

DQ Entertainment

Company Profile: DQE is one of the leading producers of animation, visual effects, game art and entertainment content for the Indian as well as global media and entertainment industry. It has a global client - partner base of over 90 producers, distributors, broadcasters and licensors including Walt Disney Television Animation, Nickelodeon Animation Studios Inc., Electronic Arts, Marvel Comics, American Greetings, NBC-Universal, BBC Group, M6/ France TV/ TF-1 Broadcasting groups from France, ZDF Germany and many more world-wide.

In India, it has production facilities in Hyderabad, Kolkata and Mumbai

DQE IPO Fast Facts

IPO Price Range: Rs.75-80 per share

No. of Shares: 16.05 Million

Capital To Be Raised: Rs.1.28 Billion

Issue Open Date: March 08

Issue Closing Date: March 10

Objective of Raising Capital via IPO: Primarily for infrastructure development and IP(Intellectual Property) creation

Financials:

For a relatively young company, DQE from April 2007 has grown very fast clocking over Rs.150 crore in revenues for FY08.The net profits have also doubled close to Rs.16 crore

Why One Should Subscribe To DQE IPO?

• A strong player in the fast growing animation industry.Even though the domestic animation industry is yet to pick up pace, DQE is well placed to cash in on the opportunity in near future
• A robust order book of Rs.456 crore for the next two years.This alone makes it a good bet for Investment with a 2-3 year horizon
• A strong client base with clients/partners including the likes of Disney, Nickelodeon, BBC etc
• A diversified client base.The company gets around 40% of its revenues from the US and close to 50% from Europe.The rest of the share is derived from India.

Well, i am seriously considering this one.Even if the company bets on the Outsourcing model, there is enough scope in the animation sector.Moreover, these niche industry IPO’s seem to be doing quite well in the recent months.Who knows i can strike gold too :P

What do you think? Will DQE get added to the list of successful IPO’s or turn out a dud.

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