OTT Platform Ullu Digital Files DRHP with SEBI for IPO Fundraising

Ullu Digital a Mumbai based over the top (OTT) streaming platform has taken a step towards growth by filing preliminary draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO solely comprising a fresh issue component aims to raise funds for various strategic initiatives including content production, acquisition of international shows, technological upgrades and team expansion.

IPO Details

As outlined in the Draft Red Herring Prospectus (DRHP) the IPO consists of up to 62,62,800 equity shares with a face value of ₹10 each, there is no offer for sale (OFS) component in this offering. Additionally, a portion of 3,15,600 equity shares is reserved for the market maker in the issue. The company will list its shares on the BSE SME platform.

Ullu Digital is promoted by couple Vibhu Agarwal and Megha Agarwal who collectively hold a 95% stake in the company. Another entity Zenith Multi Trading DMCC owns the remaining 5% as per the DRHP.
Vibhu Agarwal the founder of Ullu Digital holds a majority stake of 61.75 percent in the company while Megha Aggarwal another key figure possesses 33.25 percent ownership.

Ullu operates on a subscription based model offering weekly, monthly and annual subscription plans priced at ₹90, ₹198, and ₹459 respectively. As of September 2023 the platform boasted nearly 21 lakh active paying subscribers. The company collaborates with various production houses, creators and writers to develop content, maintaining involvement in budgeting and feedback while entrusting on the ground execution to its partners.

In the fiscal year 2022-23, Ullu witnessed substantial growth with revenue from operations soaring to ₹93.1 crore from ₹46.8 crore in FY22. Profits surged to ₹15.1 crore in FY23 compared to ₹3.9 crore in the previous fiscal year. Narnolia Financial Services has been appointed as the book running lead manager for the Ullu Digital's IPO while Skyline Financial Services will act as the registrar of the issue.

Final Words

Ullu Digital's decision to go public highlights its ambitious expansion plans and commitment to catering to the growing demand for digital content in India. With a growing financial performance and a clear roadmap for growth, the company aims to leverage the IPO proceeds to solidify its position in the competitive OTT landscape and continue providing engaging content to its subscribers.