B.A.G.CONVERGENCE IPO

B.A.G.CONVERGENCE IPO

Essential IPO Details at a Glance

Important Dates for Investors

• Opening Date: 30 Sep 2025
• Closing Date: 03 Oct 2025
• UPI Payment Deadline: 03 Oct 2025 (5 PM)
• Allotment Announcement: 06 Oct 2025
• Refund Processing: 07 Oct 2025
• Demat Credit: 07 Oct 2025
• Stock Market Listing: 08 Oct 2025
• Mandate Validity End: 18 Oct 2025
• Anchor Investor Lock-in Release (50%): 05 Nov 2025
• Anchor Investor Lock-in Release (Remaining): 04 Jan 2025

*Dates may be revised as per official updates.

Understanding B.A.G. CONVERGENCE LIMITED

Founded in 2007, B.A.G. CONVERGENCE LIMITED operates in the dynamic digital media and entertainment sector, specializing in creating and distributing engaging content. The company initially established its presence with News24online and subsequently launched a suite of Hindi and Bollywood-focused digital portals, carving out a significant niche in the Indian digital landscape.

B.A.G. CONVERGENCE has demonstrated a strategic evolution in its business model, transitioning from reliance on advertising models like Google AdSense to generating revenue primarily through content aggregators and direct client partnerships. This shift reflects an agile approach to monetization in the ever-changing digital media ecosystem. Furthermore, the company has shown foresight in adapting to technological advancements by moving from desktop-centric platforms to a mobile-first strategy. This was exemplified by the launch of News24 and E24 apps, significantly expanding its reach and catering to the growing mobile user base across 2G to 5G networks. The company’s focus on a mobile-first approach and diversified revenue streams positions it well to capture growth in India’s expanding digital consumption market.

IPO Issue Details and Financial Overview

The B.A.G. CONVERGENCE LIMITED IPO aims to raise a total of ₹48.72 crores from the primary market. This entire issue comprises a fresh issuance of shares by the company, indicating that all the funds raised will directly flow into the company’s coffers to fuel its growth initiatives and strategic objectives.

As the IPO consists solely of a fresh issue, it signals the company’s intent to utilize the capital for business expansion and operational enhancements rather than providing an exit route for existing shareholders. This inflow of capital is crucial for a company operating in a rapidly evolving sector like digital media, enabling it to invest in technology, content, and market expansion. The company’s competitive strengths also highlight a track record of high EBITDA margins and consistent growth in revenue and profitability over the last three years, which may offer a positive outlook on its financial health and operational efficiency.

Strategic Allocation of IPO Proceeds

B.A.G. CONVERGENCE LIMITED has outlined a clear plan for the utilization of the funds raised through this IPO. The capital infusion is strategically earmarked across various segments aimed at strengthening its market position, enhancing content capabilities, and ensuring long-term sustainable growth.

A significant portion of the funds, approximately 27.70%, is allocated towards Business Expansion, indicating a focus on scaling operations and potentially entering new markets or verticals within the digital media space. Another substantial allocation, 27.30%, is dedicated to Content Acquisition/Production, which is critical for a media company to maintain relevance, attract new audiences, and offer diverse content. Brand Building, with a 10.30% allocation, highlights the company’s commitment to reinforcing its brand presence and market recognition in a competitive industry. The remaining 34.70% is designated for General Corporate Purposes, providing the company with flexibility to meet various operational and strategic needs as they arise, including working capital requirements, general administrative expenses, and other unforeseen exigencies.

Core Strengths and Advantages

B.A.G. CONVERGENCE LIMITED possesses several competitive strengths that position it favorably within the dynamic digital media landscape:

• **Established Market Leadership:** The company enjoys a leadership position with its trusted Hindi news channel (News24) and popular entertainment channel (E24), complemented by a robust digital presence. This strong brand recall and audience loyalty in key segments provide a stable foundation for growth.
• **Experienced Leadership Team:** The company benefits from the extensive experience of its promoter, Anuradha Prasad Shukla, who brings over 30 years of expertise in the media industry. This is further bolstered by a skilled senior management team, contributing to sound strategic decision-making and efficient operations.
• **Strategic Platform Partnerships:** B.A.G. CONVERGENCE has forged crucial partnerships with leading OTT (Over-The-Top), CTV (Connected TV), and various other digital platforms. These collaborations are instrumental in expanding its content reach to a wider audience and unlocking diverse monetization opportunities beyond traditional advertising.
• **Diversified Content Portfolio:** The company offers a wide array of content, spanning news, entertainment, and sports. This diverse offering not only caters to varied audience preferences but also enables the company to generate multiple revenue streams, reducing dependence on a single content category.
• **Strong Financial Performance:** Demonstrating financial resilience, the company has maintained high EBITDA margins and exhibited consistent growth in both revenue and profitability over the past three years. This strong financial track record reflects effective cost management and successful business strategies.

Key Risks to Consider

While B.A.G. CONVERGENCE LIMITED presents compelling opportunities, potential investors should also be aware of certain risk factors:

• **Legal and Regulatory Proceedings:** The company and its group entities are involved in various legal proceedings. Any adverse outcome from these litigations could potentially have a negative impact on the company’s operations, financial position, and reputation.
• **Dependence on Advertising Revenues:** A significant portion of the company’s revenue is derived from advertising. A downturn in general economic conditions or shifts in advertising spending patterns could adversely affect the company’s profitability and financial performance.
• **Operational Dependency on Leased Properties:** The company does not own certain key properties, including its registered offices, which are taken on lease. This creates an operational dependency on landlords and lease agreements, and any issues related to these arrangements could disrupt operations.
• **Intense Industry Competition:** The digital media sector is characterized by intense competition from numerous other media houses, content creators, and digital platforms. This fierce competition for audience attention and advertising share could pressure the company’s market position and profitability.
• **Regulatory Changes and Controls:** The digital media industry is subject to evolving regulatory frameworks and potential stricter government controls on digital platforms. Such changes could impact the company’s content distribution strategies, monetization models, and overall business operations.

Current Subscription Status and Investor Interest

The subscription figures provide insights into investor demand for the B.A.G. CONVERGENCE IPO. As of the closing date, the issue garnered a total subscription of 1.38 times, indicating moderate investor interest overall. Here’s a breakdown by investor category:

Qualified Institutional Buyers (QIBs) subscribed to their reserved portion 1.38 times, showing a decent level of confidence from institutional investors. The Non-Institutional Investors (NII) category demonstrated strong demand, oversubscribing their portion by 2.63 times. However, Retail Individual Investors (RII) showed a subscription of 0.83 times, meaning their reserved portion was not fully subscribed. The overall subscription rate of 1.38 times suggests a balanced, albeit not overwhelmingly high, investor appetite for the IPO.

*GMP figures are unofficial and may vary; exchange data is more reliable.

Participating in the B.A.G. CONVERGENCE IPO

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes. Ensure you have completed all necessary steps to apply for the IPO within the specified timeline.