Connplex Cinemas IPO listed @ Rs. 195

August 14, 2025 admin Leave a reply Post Comment

About Connplex Cinemas

Who are the Promoters of Connplex Cinemas IPO?

What are the Objects of Connplex Cinemas IPO?

The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects

+Funding capital expenditure requirement for purchase of corporate office Rs. 14.79 Crore
+Funding capital expenditure requirement of purchase of LED Screens and Projectors Rs. 24.44 Crore
+Funding Working Capital Requirement Rs. 37.63 Crore
+Funding General Corporate Purposes

Chanakya’s IPO Review – Connplex Cinemas by Paresh Gordhandas, CA & Research Analyst

🔍 Connplex Cinemas IPO — Investment Review & Financial Health

Connplex Cinemas Limited operates premium “Smart Cinemas” primarily in Tier‑2, Tier‑3 and Tier‑4 cities under a franchise-based model. It offers recliner seating, advanced AV systems, diversified income streams (ticketing, F&B, advertising), and targets underserved regions with a luxury yet affordable experience 

📈 Financial Highlights

• Revenue (FY24): Rs.60.30 crore (↑58.6% YoY)

• PAT (FY24): Rs.4.09 crore (vs ₹1.65 crore in FY23, nearly 2.5x)

• H1 FY25: Revenue Rs.40.69 crore, PAT Rs.9.61 crore; EBITDA Rs.12.83 crore 

This turnaround reflects fast growth, improving margins, and operational leverage, particularly in the first half that propelled profits to ₹9.61 crore.

✅ Why Investors Should Consider Applying

1. Strong Profit Momentum: Sharp rise in PAT demonstrates the business is rapidly scaling with improving profitability. Half-year earnings alone exceed FY24’s full-year profit, indicating strong momentum 

2. Diversified Franchise Model: Revenue streams from box office, F&B, advertising, and private events diversify income and reduce risk, while franchise setup enables scalability with minimal capital deployment.

3. Underserved Cinematic Markets: Targeting Tier‑2/3/4 cities presents a growth opportunity—premium cinema experience is relatively untapped in these geographies.

4. IPO Utilization for Expansion: Capital from the Rs.90.27 crore issue will fund corporate office purchase (Rs.24.4 cr), working capital Rs.37.6 cr), and general corporate needs —supporting infrastructure and further growth.

5. NSE Emerge Approval in Place: Regulatory clearance from NSE Emerge is secured, enabling public listing for SME issuers, signifying regulatory readiness and compliance 

⚠️ Considerations & Risks

• Relatively Low Absolute Profits: Though growth is strong, the absolute PAT (~₹9–10 cr annualized) remains modest compared to larger players.

• Operational & Franchise Risks: Fragmented franchise operations may lead to inconsistencies in service, affecting brand reputation and margins 

• Capital Intensity & Tech Risk: Maintaining luxury standards with high-end projection and seating involves recurring CAPEX. Equipment costs and breakdowns can impact margins.

• Sectoral Risks: Changing movie schedules, pandemic resurgence, or competition from OTT platforms may impact footfall and revenues.

🏁 Final Take – Chanakya Insight

The Connplex Cinemas IPO is positioned at Rs.90.27 crore issue size under the NSE SME platform. It offers a well-timed growth bet—combining quality cinematic experience with a scalable franchise model and improving profitability. The company is moving from modest scale to growing profitability, with strong H1 FY25 earnings outpacing the prior full year.

For investors looking to bet on emerging cinema market in smaller cities, seeking early-stage gain from expansion phase, and willing to back a young, profitable business with rising margins, Connplex provides an intriguing, high-risk–high-reward opportunity.

Quicklinks

• Sahifund
• BigGaddi
• Research Reports
• Magajmari

Connplex Cinemas IPO GMP

Connplex Cinemas IPO review