Silly Monks Entertainment plans to raise Rs 15.12 cr from IPO

MUMBAI: Hyderabad-based digital entertainment company Silly Monks Entertainment is planning to Rs 15.12 crore from its initial public offer (IPO), which would open for subscription on 5 January and close on 10 January.

Silly Monks Entertainment would be the first digital entertainment company to be listed on NSE’s small and medium-sized enterprises (SME) platform Emerge.

The digital entertainment company is offering 12.60 lakh equity shares of face value of Rs 10 each. The IPO is fixed price offer and is offered at the price of Rs. 120 per share.

The company proposes to utilise the net proceeds from the IPO to acquire audio and video content, to expand their presence pan-India and general corporate purposes.

Silly Monks Entertainment has its focus on digital media publishing. The company publishes the digital content on various platforms such as YouTube, Facebook, Amazon, and Vuclip.

The contents published are either created by the company or acquired through outright purchase or through syndicated method.

In case of acquired content, the company owns the copyrights through an agreement with assignor and hence the publishing revenue is fully accrued to the company. When the content is through syndication, the company shares the revenue with the content partner.

The company is also engaged in movie/content production, celebrity’s social media management, App development, Audio content Distribution, Google Ad word and online/digital Advertising, event management, and live band performances.

Commenting on Company IPO, Silly Monks Entertainment founder and CMD T. Sanjay Reddy said, “For Silly Monks, we envision a 360-degree approach to our industry deliverables, to be considered a formidable player in this space. We certainly have the numbers to prove our mettle – 972+ YouTube channels delivering 375+ million views per month wherein we have recently achieved 1 billion minutes of video watch time in the month of October 2017 alone.”

Silly Monks posted a consolidated net profit of Rs 96 lakh in H1 FY18 on consolidated revenue of Rs. 6.54 crore. In FY17, the company posted a net profit of Rs 1.45 crore on revenue of Rs 12.01 crore. In the previous fiscal, the net profit was Rs 28 lakh on revenue of Rs 4.92 crore.

The lead manager of the issue is Aryaman Financial Services and the registrar to the issue is Bigshare Services.