Connplex Cinemas
- Connplex Cinemas is coming out with an initial public offering (IPO) of 51,00,000 equity shares in a price band Rs 168-177 per equity share.
- The issue will open on August 7, 2025 and will close on August 11, 2025.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 16.80 times of its face value on the lower side and 17.70 times on the higher side.
- Book running lead manager to the issue is Beeline Capital Advisors.
- Compliance Officer for the issue is Ratika Khandelwal.
Profile of the company
Connplex Cinemas is an entertainment company. The company is engaged in the business of development of theatres, entering into the franchise agreements specializing for exhibition and distribution of films, sharing revenue of screening of movies, sale of food & beverages and Sharing of Revenue from sale of Food & Beverages & advertisements at Various Franchised Cinema, and other related business under the Brand name “CONNPLEX” and other Brands registered under the name of Company. The company operates a network of Cinema offering a diverse range of cinematic experiences that cater to various audience preferences. Its business is built on three main pillars: A) Making / Developing of Cinema Theatres, B) film exhibition & film distribution (Including Event Hosting), and C) Revenue Sharing / Sale of Food and Beverages and Other Revenue incl. advertisement sharing.
Additionally, the company collaborates with filmmakers and studios to distribute films across its theatres and digital platforms, focusing on strategic marketing to maximize audience reach. Beyond regular screenings, it also provides event spaces for private screenings, corporate events, and community gatherings, creating additional revenue streams and engaging its local communities. It is distinguished by its customer experience which includes cinema making, film distribution, programming and latest technologies. Its strategic locations and theater technologies give it an edge in attracting and retaining audiences. It caters to a diverse audience, including families, young adults, and cinema enthusiasts, with programming designed to engage these segments through a mix of mainstream blockbusters, art films, and themed events.
It has redefined cinema experiences by strategically focusing on under-served markets in Tier 2, 3, and 4 cities, as well as expanding in metro locations including tier 1 cities across India. Its mission has always been to bring entertainment to regions where such experiences were previously unavailable or inaccessible. By introducing a cinema model that blends high grade standards, convenience, and affordability, it has broken traditional barriers, allowing audiences from various regions to enjoy a premium movie-going experience without the prohibitive costs typically associated with large multiplex chains. Its cinemas are constructed and designed with a deep understanding of customer preferences and regional nuances. With majority of recliner seating, sound systems, and high-definition projection technology, it ensures that every aspect of the movie experience is elevated. The smaller, boutique-style cinemas offer an intimate and private yet upscale environment, catering to local audiences who previously had limited access to cinemas. This approach allows it to build strong connections with its communities, providing them not only with a place to watch films but also with a venue for private events such as corporate screenings, birthday parties, and special premieres.
Proceed is being used for:
- Funding capital expenditure requirement for purchase of corporate office
- Funding capital expenditure requirement of purchase of LED screens and projectors
- Funding working capital requirement
- Funding general corporate purposes
Industry Overview
The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making significant strides. The increasing availability of fast and cheap internet, rising incomes, and increasing purchases of consumer durables have significantly aided the industry. India’s media and entertainment industry are unique as compared to other markets. The industry is well known
for its extremely high volumes and rising Average Revenue Per User (ARPU). This significantly aided the country’s industry and made India leading in terms of digital adoption and provided companies with uninterrupted rich data to understand their customers better. India has also experienced growing opportunities in the VFX sector as the focus shifted globally to India as a preferred content creator.
The Indian Media & Entertainment (M&E) sector is set for substantial growth, with a projected 10.2% increase, reaching Rs 2.55 trillion ($30.8 billion) by 2024 and a 10% CAGR, hitting Rs 3.08 trillion ($37.2 billion) by 2026. Advertising revenue in India is projected to reach Rs 330 billion ($3.98 billion) by 2024. The share of traditional media (television, print, filmed entertainment, OOH, music, radio) stood at 57% of the media and entertainment sector revenues in 2023. The country's entertainment and media industry is expected to see a growth of 9.7% annually in revenues to reach $73.6 billion by 2027. Revenue of the Indian video OTT market that is dominated by players such as Amazon Prime Video, Netflix, and Disney+Hotstar is set to double from $1.8 billion in 2022 to $3.5 billion by 2027. The Indian media and entertainment sector posted a robust 19.9% growth in 2022 and crossed the Rs 2 trillion ($24billion) mark in annual revenue for the first time led by a sharp jump in the digital advertising mop-up.
The Indian M&E industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate. This can be majorly credited to rising incomes, increasing internet penetration and a growing push toward digital adoption. In the long run, growth is the M&E industry is expected in retail advertisement on the back of several players entering the food and beverages segment, E-commerce gaining more popularity in the country, and domestic companies testing out the waters. India’s rural regions are expected to be the next regions for growth. India has also gotten on board with 5G and is already planning for 6G well ahead of the future. This push towards digital adoption especially in the rural regions will provide advertisers and publishers with an immense opportunity to capture untapped markets and help grow India’s media and entertainment industry forward.
Pros and strengths
Experience and new Technology: The company’s commitment to delivering a cinema experience distinguishes it from traditional cinema chains. It focuses on providing top tier amenities, including plush recliner seating, immersive surround sound systems, and high-definition screens that elevate the movie-watching experience. Each screening feels uniquely personal, offering a premium environment that appeals to discerning audiences. It continually invests in the latest sound and visual technology, including Dolby Atmos systems and advance 2K projectors, ensuring flawless clarity and immersive sound. This focus on technology enriches the customer experience in the evolving cinema industry.
Strong franchisee support system & quick franchise setup process: The company offers a comprehensive and supportive franchise system that empowers its franchisees to succeed. From the initial location selection to the construction phase, and throughout the operational and marketing setup, it ensures that every step is streamlined and efficient. Its franchisees benefit from ongoing guidance and operational support, ensuring that they adhere to its high standards while also maximizing profitability. The quick setup process, supported by modular cinema designs and strategic partnerships with key vendors, allows its franchisees to launch quickly and effectively. This approach accelerates the return on investment and has been a critical factor in its rapid expansion across diverse markets.
Variety of cinema formats: The company has developed a range of cinema formats to ensure it meet the diverse needs of its audience. Its Express Model is ideal for compact spaces in densely populated areas, providing a quick and efficient cinema experience without compromising on standards. The Signature Model offers a more elevated experience, with premium design elements and personalized services that cater to customers seeking a high-end, immersive environment. Its flagship Luxuriance Model delivers the ultimate in opulence, combining cutting-edge technology with luxurious interiors to create an unparalleled cinema experience. These varied formats allow it to serve different market segments while ensuring that each cinema reflects its commitment to quality and customer satisfaction.
Risks and concerns
Top ten suppliers contribute majority of its purchases: The company’s top ten suppliers contributed around 39.19%, 56.02% and 71.56% and of its total purchases and Direct Cost for the years ended March 31 2025, March 31, 2024 and March 31, 2023 based on Restated Financial Statements. However, its top suppliers may vary from period to period depending on the demand-supply mechanism and thus the supply process from these suppliers might change as it continues to seek more cost-effective suppliers in normal course of business. Since its business is concentrated among relatively significant suppliers, it could experience a reduction in its purchases and business operations if it loses one or more of these suppliers, including but not limited on account of any dispute or disqualification. While the company has maintained good and long-term relationships with its other suppliers too, there can be no assurance that it will continue to have such long-term relationship with them. It cannot assure that it shall do the same quantum of business, or any business at all, with these customers, and loss of business with one or more of them may adversely affect its purchases and business operations.
Rise of OTT platforms and changing content consumption patterns: The emergence and growing popularity of Over-the-Top (OTT) content platforms have transformed consumer viewing habits, offering convenient and cost-effective alternatives to traditional cinema-going. The shift toward on-demand digital entertainment may lead to a reduction in cinema attendance, especially among audiences who prioritize flexibility and content variety. This evolving preference could affect box office collections, lower demand for theatrical releases, and reduce concession revenue, all of which form the core of its business model. Furthermore, if studios increasingly choose direct-to-digital releases for select films, the availability of exclusive theatrical content could decline, limiting its ability to attract consistent footfall. To stay relevant, it has invested in premium viewing experiences and curated content offerings that distinguish the in-theater experience. However, the influence of OTT platforms continues to grow, and there is no assurance that consumer behavior will revert to traditional formats. This shift may pose long-term challenges to growth, customer engagement, and content acquisition.
Increased competition from alternative entertainment forms: The growing availability of alternative entertainment options, particularly home-based streaming platforms and other digital content services, presents a significant challenge to its cinema operations. Customers now have the option to enjoy a wide variety of content from the comfort of their homes, often at a lower cost than attending a movie theater. This shift in consumer behavior could result in decreased foot traffic in its cinemas, leading to a reduction in ticket sales and concession revenue. With fewer customers choosing to visit cinemas, its revenue streams may become increasingly strained, and the underutilization of its facilities could drive up the cost per customer. This could also weaken its position in the market, as other forms of entertainment continue to grow in popularity, pulling customers away from traditional cinema experiences. The competition from home entertainment and other alternative platforms remains fierce, and there is no assurance that it can fully offset the impact on customer attendance and revenue generation. Continued erosion of market share could pose a significant threat to its long-term profitability and position within the entertainment industry.
Outlook
Connplex Cinemas is an entertainment company operating “Smart Cinemas” throughout the nation, providing a premium movie experience with advanced technology, comfortable seating, and a focus on Indian preferences. The company has strong franchisee support system & quick franchise setup process. It also has strong diversified revenue stream. On the concern side, the company’s top ten suppliers contribute majority of its purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability. Moreover, the rise of OTT platforms and changing content consumption patterns may reduce cinema footfall and impact long-term business viability.
The company is coming out with a maiden IPO of 51,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 168-177 per equity share. The aggregate size of the offer is around Rs 85.68 crore to Rs 90.27 crore based on lower and upper price band respectively. On performance front, revenue from operations increased significantly by 58.56% from Rs 6,029.74 lakh in Fiscal 2024 to Rs 9,560.96 lakh in Fiscal 2025. This growth was primarily attributable to higher income from setting up cinema operations (including franchisee fees). Moreover, net profit increased sharply from Rs 408.75 lakh in Fiscal 2024 to Rs 1,900.99 lakh in Fiscal 2025, reflecting operational leverage and improved business performance.
The company’s strategy includes enhancing revenue from non-ticket sources to ensure diversified and stable income streams. These ancillary revenue streams include food and beverage sales, in-cinema advertising, and private events. By offering regionally tailored, F&B options and dynamic pricing, it can maximize sales during peak times. Additionally, it will leverage its strong brand presence to collaborate with advertisers, offering on-screen and off-screen promotional opportunities for businesses. Another focus will be on renting out its cinemas for corporate events, private screenings, and special occasions. This will allow it to capitalize on underutilized screening times, generating revenue even during non-peak hours. Expanding partnerships with local and international brands for product placements and in-cinema activations will further strengthen this revenue segment.
