Mumbai, 4th October 2023: In a historic turn of events, Pune-based Digikore Studios, a world-class visual effects (VFX) studio, achieved a remarkable milestone with its successful IPO launch, securing the prestigious title of the 3rd largest SME IPO subscription in India’s history. The company now stands on the threshold of a new chapter in its remarkable journey, with its shares being listed at Rs 270 on the NSE Emerge, against the issue price of Rs 171, indicating a 57.8 percent premium.
The recent IPO launch in September 2023 sent shockwaves through the investment landscape as it garnered an astounding oversubscription rate of 18.78 times on the very first day. Retail investors showcased remarkable enthusiasm, oversubscribing by a staggering 32.73 times their allocated portion, while non-institutional buyers demonstrated their eagerness by subscribing 15.02 times. Qualified Institutional Buyers (QIBs) too expressed unwavering confidence, subscribing to their allotted portion by 7.09 times.
By the end of the second day, Digikore’s IPO had been oversubscribed by an impressive 65.59 times, further solidifying its position as a future leader in the VFX industry. The crescendo came on the final day, with an incredible oversubscription of 243.11 times amounting to applications worth Rs. 5,411 crores. Investors bid for a remarkable 31,64,27,200 equity shares, far exceeding the total offering of 13,01,600 shares. This demand reaffirmed Digikore’s status as one of the hottest IPOs in recent memory.
Abhishek More, Founder and CEO of Digikore Studios, expressed his excitement, saying, “We are thrilled to reach this significant milestone, which reflects the tremendous trust and support from our investors. The VFX and animation industry in India is experiencing a remarkable transformation, driven by a growing appetite for top-tier visual experiences in cinema, television, and advertising. With ever-evolving technology, we are empowered to take on more ambitious and inventive projects.”
He further added, “The Indian VFX and animation sector is poised for a bright future, projected to achieve a robust CAGR of 20% to 25% and surging towards an estimated market value of INR 190 billion by 2025. At Digikore, we are not just witnessing but actively shaping this promising future. With the resources from our successful IPO, we are committed to pushing the boundaries of visual effects and animation, setting new industry standards, and contributing to the remarkable growth of the Indian VFX sector. We eagerly anticipate delivering more groundbreaking visual effects and animation work from India in the years ahead.”
But this achievement did not happen overnight. Let’s rewind to discover the incredible journey that led Digikore to this moment. Digikore Studios, initially setting sail as a 2D animation venture in 2000, embarked on an extraordinary journey characterized by resilience and transformation. Through the ups and downs, from nearly facing closure to emerging as a global VFX powerhouse, Digikore’s story embodies robust vision and adaptability. A pivotal moment came in 2010 when they secured their first major VFX project, James Cameron’s Titanic 3D, heralding a new era of possibilities.
While they briefly ventured into Bollywood, the company soon realized the importance of profitability over fame, leading to a refocus on Hollywood in 2016. Just when things were looking up, the unexpected challenge of COVID-19 hit. However, Digikore proved its adaptability, swiftly adjusting to the surge in streaming platforms’ demand, which kept their business afloat.
Digikore has played a pivotal role in some of the world’s most iconic movies and shows, including Thor: Love and Thunder, Black Panther: Wakanda Forever, Deadpool, Star Trek, Jumanji, Stranger Things, Game of Thrones, The Last Ship, Titanic 3D, and Ghost Rider: Spirit of Vengeance, among others. They count every major studio in their list of growing clients including Disney, Marvel, Netflix, Amazon, Apple, Warner Brothers, Sony, Paramount, and Lionsgate.
The VFX industry is undergoing a seismic shift toward Virtual Production, and Digikore stands at the forefront of this revolution. Digikore’s early adoption places it in a prime position to drive substantial revenue and profits in the coming years. It has a proud history of embracing cutting-edge technologies, from AI in 2022 to leading the way in Virtual Production. This disruptive technology will democratize filmmaking, reshaping how movies, TV series, and commercials are created.