On technical front, it seems to be forming a base.
Can become strong once give closing above 480 on DTF. Looking like it should move up, can be a trap as well. Stop loss of closing below 200 DMA
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Funds will be used for developing new technologies and for to start the journey in gaming & animation space.
I see this development as big strategic move with respect to longevity of the business, If they execute it well In that case the combination of vfx in OTT & movies along with gaming & animation will be deadly.
Disclaimer- Invested & Biased and having conviction on the promoters.
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Don’t think PhantomFX will get involved itself in distribution as it has no competency at all in that space. Its the other producers or large distributors who will take a call… Also, from what i know it is getting released in the super busy Pongal/Sankranthi season with lot of competition from other movies. So, while they continue to release the movie during Pongal in Tamilnadu, they have opted to postpone their release in other languages- in Telugu, they have postponed the theatrical release to the subsequent weeks. Not sure about Kannada though.
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Ayalaan is available for booking in most of the multiplexes and theatres in Bangalore and Chennai via Bookmyshow. In the earlier thread(deleted now), it was too early to check.
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https://in.bookmyshow.com/buytickets/ayalaan-bengaluru/movie-bang-ET00311489-MT/20240112
Going to watch over the weekends.
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https://static.nseindia.com/s3fs-public/2023-05/PR_cc_20042023.pdf
This press release above basically gives 2 conditions for migrating from NSE/BSE SME exchange to main board , which are as below:
- It should have a net worth of minimum 50 crores.
- It should have been listed on the exchanges for a minimum of 3 years
Also posting a link for some early reviews for the film
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Add one more point based on 27.11.2023 concall:
Question: you said that you are looking for inorganic opportunities.
So, can I know what are your specific criteria for the companies which you are looking for? And also, are you looking for opportunities in India itself or any other foreign companies like Canada, US or Europe?
Answer : We are looking at acquisitions. As of now, we have brokered a deal with a couple of companies. So, the fund that we are raising will be going towards that as well. So, right now, I am not in a liberty to reveal who they are. Once the deal is sealed off, I will probably reveal it. But that is for sure going to add more value to the brand because these are two different new verticals, not into VFX. So, this is definitely going to add value to what Phantom has built over the years and this is definitely going to build the very big – create a very big wave in the market.
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I did watch Ayalaan movie on Friday. Overall occupancy was around 20%(morning show). It was released without much publicity compared to other big tamil( captain miller) and telugu( gunturu kaaram) movies released on the same day for Sankranthi. First half was impressive but second half turns out to be average. Overall I think it is getting getting good word of mouth publicity reflecting in better occupancy over weekend. If we look at the no of ticket sold it is at par with other tamil movie like captain miller.
Phantom has done good work with VFX effects in the movie.
Looks like movie will be released in Hindi in near future.
Disclosure: Invested
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2 days collection about to reach 20cr, with hindi and telugu release atleast it should get the good response.
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What I wanted to ask was didn’t Phantom sell the rights of the movie for a specified amount? I guess it was 19 crores?
So whatever additional the movie makes, phantom won’t get a piece of it?
Would be great if someone clear my doubts, thank you.
Disc- Invested, 6.37% of portfolio.
They have paid 17cr for the distribution rights, We don’t know in how much they have sold the distribution rights (overseas & domestic).
Usually in co-production business the profit share is 8-10%
Disc- Invested
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Dr. Rohit ji…Phantom digital has acquired Distribution rights at 17 Cr for Overseas territory…These rights are sold to “Hamsini Entertainment” who further sold it to other country specific distributors barring USA
Coming to your question on will Phantom digital receive any profit share from collections too.
Since the deal is on a “Minimum Guarantee / MG” basis, we need to understand little bit on this type of deal. The MG deal comprises of two parts.
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Part A, is the initial amount along with the profit percentage which the seller/ Phantom would seek and to be paid in total before movie release.
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Part B, is basis the actual collections for that territory. In our case it will be basis “Overseas territory” collections only. Profit is shared if the collections for this territory cross certain threshold limit
Generally, MG deal is done to minimise the risk between the buyer and seller.
On Part A collection…During EGM meeting for QIP, Bejoy / CFO mentioned that they had already received 50% amount and the remaining amount will be received before movie release. Since the movie is already released we can assume that they would have got 100% payment by now.
On Part B collection and profit sharing… movie has got a good talk especially VFX portion…it is running successfully all across, with collections increasing day by day…even today 15th being a holiday in TN and I guess in USA too collections are increasing compared to Sunday… 16th TN collections will be high again as most of the theatres are already sold out or fast filling and more shows getting added but Overseas would drop and pick again in weekend
My view is that Phantom digital wasn’t looking to make huge profits out of it as their main intention was to showcase their VFX capabilities to the world, but the project got into financial trouble as one of the producer (24AM Studios) moved out and Phantom got in to support other producer (KJR Studios) from financial challenges so that the movie gets released and they will be able showcase their work…I guess they have achieved what they wanted with flying colours, the feedback on VFX is highly positive all across and is also acting as a strong contributor to overall movie’s success
Having said that, at this stage we don’t know the profit margin for part A and threshold limit plus profit sharing percentage for part B
I believe Phantom would not have sold it at cost for sure…for Part A, they might have taken a profit percentage anywhere in the range of min 10 to max 35% (inline with company’s profit margins) and would have left the remaining profits for part B which if it comes would be an added bonus
We can get more clarity on part A profit percentage and part B threshold limit details during Q3 concall (request callers to please ask these questions)
Part B portion will be realised only after Telugu and Hindi releases, probably in another month or so …I guess this would add another 50-100% above the final Tamil overseas collections
In short, PhantomFX is already in profit and received their money… profits from overseas collections if any will be an added bonus
D: Invested and positive on VFX Industry
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Mark these words from Mr. Bejoy Founder and CEO of Phantom digital
Success of Ayalaan movie will be a transformative stepping stone for the rise of Indian VFX industry and Indian cinema
I am sure Ayalaan, HanuMan movies success would have become talk of the town in Industry circles
Sharing my thoughts on the same
What it means for Indian VFX Industry and Indian Cinema
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Hollywood genres like Sci-Fi / Superhero movies which were largely un attempted or half attempted before can be made in India …HanuMan director has plans to make some 10 other Superhero movies, one is already in pipeline… Ayalaan director Ravikumar is only interested in Sci-Fi movies and his next also will be same including Ayalaan 2… and I am sure more movie makers will be already thinking in similar lines
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Budget is not a constraint, we can do it below 100-150 Crs …unlike the previous VFX heavy movie hits like Baahubali, RRR
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Technical capabilities and Quality is not a constraint…We don’t need to hire Hollywood Studios for making these kind of films…Indian VFX studios like Phantom digital has proven that they can handle large & complex projects alone
What it means for PhantomFX
- Brand Image - Ayalaan has put PhantomFX in one of the top Indian VFX studios to work with …It has become a popular name for Tamil audience …they would be interested to have their favourite Hero project handled by PhantomFX vs any unknown company
Note, Brand image also plays a key role in attracting talent and retaining them
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More projects - Given the quality and technical capabilities a directors top choices will have PhantomFX in the list…Also
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High chances are that Dir. Ravikumar will be working again with PhantomFX for his next projects
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Ayalaan 2 - Director, Producer and Hero at different times mentioned that they have plans for Ayalaan 2 (movie too ends with scope for part 2), but I guess this will depend on success of its Telugu, Hindi versions that would give them confidence and clarity on what scale it has to be taken up…with IP rights, for sure Phantom will be working for this series too
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Co-producer model - Unlike a service provider who is not worried about the success of the movie, producer will be more than happy to work with companies like Phantom willing to share risk and also providing a dedicated team putting their heart out there working right from the ideation stage ensuring that their baby is delivered with utmost quality…
This model looks a win-win for both … Phantom would bag more projects and bigger pie of VFX work along with IP rights for VFX models…but, given the risks in production Phantom has to make sure that their Investments are secured and 100% recoverable with learnings if any from Ayalaan
Needless to say about the advantage it gets over its competitors while increasing chances for grabbing more Hollywood projects
Disc: Invested and positive on VFX Segment
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50 Cr order from Ayalaan producer, KJR Studios
In the current business world people want every transaction to be profitable come what may… But, we are forgetting that there is something called LTV (Life Time Value) of a customer …It is much much bigger than the short term pain / deviation you take making adjustments to your customer needs
Needless to say, the message you send across by your positive acts to other potential customers …btw, yesterday actor Surya appreciated PhantomFX for their excellent VFX work…I believe there will be more to come by and in different forms
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Following the resounding success of the original Ayalaan, Phantom visual effects (VFX) studio, joined forces to push the boundaries of VFX and CGI with the highly anticipated sequel, Ayalaan 2.
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I was studying companies similar to phantom, and I found out about Prime Focus Company, which is also engaged in similar activities. I have observed that their balance sheet shows a consistent increase in debt year on year. Does this indicates that the sector is capital-intensive, and similar to Prime Focus, they might be incurring increasing debt due to plans for acquisitions and investments in technology?