Shares of this VFX-making company jumped 2 percent in Tuesday’s trading session after it raised Rs. 800 Mn via Qualified Institutional Placement (QIP) to fuel expansion. The shares have delivered a multibagger return of 129 percent in one year to its shareholders.
With a market capitalisation of Rs. 611 crores, the shares of Phantom Digital Effects Ltd started Tuesday’s trading session on a higher note at Rs. 454.90 compared to its previous close of Rs. 441.15. The shares hit a high of Rs. 455, gaining around 2 percent and are currently trading at Rs. 449.50 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing, announced that they had successfully raised Rs. 80 million (Rs. 8 crores) via Qualified Institutional Placement (QIP). Many investors participated in the process of QIP, in which, the well-known international investment banking firms BofA Securities and Morgan Stanley Asia (Singapore) PTE were one of them.
The well-known investment banking firm Morgan Stanely Asia Singapore Pte invested Rs. 16.99 crores which is equivalent to 21.24 percent of the QIP size. On the other hand, BofA Securities invested Rs. 15 crores, equivalent to 18.75 percent of the QIP size.
Furthermore, the company mentioned that the raised funds will be utilized for capital expenditure of Rs. 650 million for augmenting capabilities, Rs. 135 million to fund working capital requirements to meet the growing scale of operations, and the remaining Rs. 15 million will be used for general corporate purposes.
Digging into the company’s financial statement, the revenue magnified by 163 percent from Rs. 22 crores during FY21-22 to Rs. 58 crores during FY22-23. In addition, the net profits zoomed by 220 percent from Rs. 5 crores to Rs. 16 crores during the same timeframe.
The company has designed visual effects for prominent Hollywood and Bollywood films such as RRR, Joker, Avengers, Bahubali, and many more. The company has signed contracts with major production houses and OTT platforms, and the revenue mix is expected to change as the company expands in the international market.
Earlier, Phantom Digital Effects announced strategic expansions in India and globally, including a deal with a major OTT platform worth Rs. 1,200 million over four years. Moreover, the company is investing in technology and software development to enhance productivity and reduce manual work and is exploring opportunities in the gaming and animation sectors.
Headquartered in Chennai, Phantom Digital Effects was incorporated in 2016. The company provides high-end visual effects solutions for commercials, feature films, and Web series globally.
Written By Vaibhav Patil
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