Ullu’s IPO plan hits roadblock as govt bans OTT apps and websites over obscene content
Ullu Digital's Rs 135–150 crore IPO plans face uncertainty after a government ban on its app over obscene content, raising regulatory concerns just months after filing draft papers in February 2025.
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The upcoming IPO of OTT platform Ullu Digital may face turbulence after the Ministry of Information and Broadcasting (MIB) ordered Internet Service Providers to block access to the app in July 2025 over alleged obscene and unlawful content.
The government directive, issued under the IT Act, 2000, and the Digital Media Ethics Code Rules, 2021, invoked intermediary liability provisions, specifically Section 79(3)(b) and Rule 3(1)(d), to clamp down on 25 platforms including Ullu and ALTT. This comes just months after Ullu filed draft IPO papers with the BSE SME exchange in February 2025, aiming to raise Rs 135–150 crore, which would make it the largest-ever IPO in India’s SME segment.
According to the draft red herring prospectus, the IPO was to be entirely a fresh issue of about 62.6 lakh shares, with proceeds earmarked for content creation (Rs 30 crore), acquisition of international shows (Rs 20 crore), tech investments (Rs 15 crore) and working capital (Rs 50 crore). The remainder was allocated for general corporate purposes.
Founded by Vibhu Agarwal and Megha Agarwal, who collectively hold 95% stake, Ullu competes with listed players like Zee Entertainment and Shemaroo Entertainment. Its platform focuses on web series, short films and regional content, but has long courted controversy for its bold and adult-themed programming.
With the MIB's ban now in effect, investor confidence could be severely dented, potentially delaying or derailing what was touted as a marquee IPO in the SME space.
The company had appointed Narnolia Financial Services as the lead merchant banker for the issue. Ullu’s public offering was poised to eclipse past SME IPOs such as Spectrum Talent Management (Rs 105 crore) and Aashka Hospitals (Rs 101.6 crore).
