The initial public offering (IPO) of Identical Brains Studios Ltd. opened for subscription on Wednesday and is set to close on Friday, December 20. This Rs 19.95-crore IPO is a fresh issuance of 36.94 lakh shares, with no offer-for-sale (OFS) component, making it an exciting opportunity for investors.
Subscription Highlights
As of Wednesday, the SME IPO achieved a subscription rate of 146.8 times. Retail investors demonstrated significant interest, bidding for 27.73 crore shares compared to the 12.28 lakh shares available.
By Day 3 (Friday), as of 12:19 p.m., the IPO had been subscribed 237.66 times across investor categories:
- Qualified Institutional Buyers (QIBs): 17.46 times
- Non-Institutional Investors (NIIs): 289.61 times
- Retail Investors: 341.56 times
Subscription updates are provided in real-time, reflecting robust demand across all categories.
IPO Pricing and Investment Details
The price band for Identical Brains Studios IPO is set at Rs 51 to Rs 54 per share. Retail investors must apply for a minimum of 2,000 shares per lot, requiring a minimum investment of Rs 1,08,000 at the upper price band.
Key Players in the IPO Process
- Registrar: Bigshare Services Pvt. Ltd.
- Book-Running Lead Manager: Socradamus Capital Pvt. Ltd.
- Market Maker: Rikhav Securities Ltd.
Grey Market Premium (GMP) Update
The grey market premium (GMP) for the Identical Brains Studios IPO stood at Rs 44 as of 10:26 a.m. on Friday. This indicates a potential listing price of Rs 98 per share, translating to an expected listing gain of 81.48% at the upper price band.
Note: GMP figures are based on speculation and are not official stock price indicators.
Allotment and Listing Details
- Allotment Finalization: Expected on Monday, December 23
- Demat Credit and Refunds: Scheduled for December 24
- Listing Date: Shares will debut on the NSE SME platform, Emerge, on Thursday, December 26
Company Overview and Use of Proceeds
Identical Brains Studios Ltd. specializes in visual effects (VFX) services for films, web series, TV series, commercials, and documentaries. Known for award-winning projects like Scam 1992: The Harshad Mehta Story (2020) and Rocket Boys (2022), the company has carved a niche in the entertainment industry.
Planned Utilization of IPO Funds:
- Renovating its Andheri studio in Mumbai.
- Establishing a new branch office in Lucknow.
- Setting up advanced facilities for color grading, digital intermediate, and sound editing.
- Procuring computers, storage systems, and software.
- Meeting working capital needs and general corporate expenses.
Financial Performance
For the six months ending September 30, FY25, Identical Brains Studios reported revenues of Rs 11.39 crore and a net profit of Rs 2.4 crore. In FY24, the company achieved revenue of Rs 20.08 crore with a net profit of Rs 5.34 crore, reflecting steady financial growth.
Final Thought
The Identical Brains Studios IPO offers a compelling investment opportunity, driven by strong investor demand, attractive growth prospects, and robust financials. However, potential investors are advised to evaluate the risks and benefits thoroughly. Consulting financial advisors and reviewing the red herring prospectus before investing is crucial.
Disclaimer: Investments in IPOs involve market risks. Perform due diligence before making financial commitments.
