Ullu Digital Files Draft Papers for IPO, Eyes Record-Breaking Fundraise

Ullu Digital, a Mumbai-based OTT streaming platform, has made a significant move in the financial landscape by filing draft papers with the BSE SME to initiate an initial public offering (IPO).

The company aims to raise between Rs 135-150 crore through this IPO, making it potentially the largest SME IPO in terms of size if approved.

The IPO is planned to be a fresh issue of approximately 62.6 lakh shares, reflecting the company's ambition to fuel its growth and expansion strategies. Sources close to the matter have indicated that Ullu Digital is poised to become a major player in the rapidly evolving OTT industry, leveraging its diverse content offerings and robust technology infrastructure.

Established as a prominent player in the OTT space, Ullu Digital engages in various aspects of content distribution, exhibition, promotion, marketing, and delivery through its platform and app, Ullu.
The platform is renowned for its extensive collection of web series, short films, and shows, catering to a wide range of audience preferences.

The brains behind Ullu Digital, Vibhu Agarwal and his wife Megha Agarwal, are set to utilise the funds raised from the IPO strategically.

A significant portion, amounting to Rs 30 crore, is earmarked for the production of new content, emphasising the company's commitment to continuously innovate and diversify its offerings.

Moreover, Rs 20 crore will be allocated for the acquisition of international shows, signalling Ullu Digital's intention to enhance its global presence and appeal.

In addition, a sum of Rs 15 crore is dedicated to investments in technology, reflecting the company's focus on leveraging cutting-edge tools and platforms to enhance the user experience and operational efficiency.

The allocation of Rs 50 crore towards meeting working capital requirements underscores Ullu Digital's prudent financial management approach, ensuring adequate liquidity to support ongoing operations and growth initiatives.

Furthermore, the remaining funds will be utilised for general corporate purposes, providing the company with the flexibility to seize emerging opportunities and navigate dynamic market conditions.

As per the ownership structure, Vibhu and Megha Agarwal hold a commanding 95 percent stake in Ullu Digital, underscoring their deep commitment and belief in the company's potential.

The remaining 5 percent of shares are held by public shareholder Zenith Multi Trading DMCC, reflecting a balanced ownership structure.

Narnolia Financial Services has been appointed as the merchant banker for the IPO, highlighting Ullu Digital's focus on partnering with reputed financial institutions to ensure a seamless and successful fundraising process.

Ullu Digital's decision to pursue an IPO underscores its confidence in its business model and growth prospects. With a well-defined strategy and strong financial backing, the company is poised to capitalise on the burgeoning opportunities in the dynamic OTT landscape, further solidifying its position as a leading player in the industry.