Recode Studios Makes Market Debut: Initial Public Offering Commences

Recode Studios IPO Sees Strong Sentiment on First Day of Subscription

The initial public offering (IPO) of Recode Studios opened for subscription on May 5, with the company aiming to raise ₹44.59 crore from the market. The IPO will close on Thursday, May 7, and the allotment is expected on Friday, May 8.

Recode Studios has set a price band of ₹150-158 per share for the IPO, which will see the company issue a mix of fresh shares and an offer for sale (OFS). The issue consists of a fresh issue of 0.25 crore shares aggregating to ₹39.55 crore and an offer for sale of 0.03 crore shares aggregating to ₹5.04 crore.

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The IPO subscription will open at 10 am on May 5, and the successful applicants are likely to receive their shares on Monday, May 11. Refunds for non-allottees will also be processed on the same day. The stock is scheduled to list on the BSE SME with a tentative listing date of May 12.

Recode Studios reported a strong grey market premium (GMP) of ₹40 on May 5, suggesting that the stock was likely to debut at ₹198, a premium of 25.32% from its IPO price. The company plans to utilise the net proceeds from the issue across multiple strategic areas to support its growth plans.

The net proceeds will be utilised as follows:

• ₹5.74 crore for capital expenditure towards setting up a new warehouse facility in Ludhiana, Punjab
• ₹5.41 crore for marketing and advertising initiatives to enhance brand visibility and awareness
• ₹19.50 crore towards meeting working capital requirements to support day-to-day operations and business expansion
• Remaining funds for general corporate purposes

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The lot size is 800 shares, requiring a minimum retail investment of ₹2.52 lakh (1600 shares, 2 lots) at the upper end of the price band. Seren Capital Pvt.Ltd. is the book running lead manager for the IPO and Mudra RTA Ventures Private Limited is the registrar of the issue. Asnani Stock Broker Pvt.Ltd. is the Market Maker of the company.

Recode Studios operates in India’s beauty and personal care space, focusing on cosmetics and related products. The company builds and sells its offerings under the “Recode” brand, with a portfolio of more than 350 SKUs spanning face, eye and lip make-up, skincare, body care, and beauty accessories. Its business is centred on branding, sourcing, and distribution rather than manufacturing.