Recode Studios Posts 5% Gain in Trading Debut

Recode Studios Makes Strong Debut on BSE SME

Recode Studios, a player in India's beauty and personal care industry, made a strong debut on the BSE SME today with its share price opening at ₹213.10, a 35% increase from the issue price of ₹158. The stock was locked in at a 5% upper circuit at ₹223.75 per share.

The ₹44.6 crore SME IPO was open for subscription from May 5 to May 7. The issue was priced at ₹150-₹158 per share. Notably, the IPO subscription status on the third bidding day was 234.64 times, according to chittorgarh.com.

Ahead of the public offering, the company raised ₹12.7 crore from anchor investors on May 4, providing early institutional backing. Established in 2021, Recode Studios functions under the "Recode" label and specializes in branding, sourcing, and retailing a diverse array of cosmetics, skincare, and body care items via a combination of physical locations, franchise stores, its own online platforms, and third-party e-commerce websites.

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Its products are available on platforms like Amazon, Nykaa, Myntra, and Flipkart, while its offline growth is supported by a blend of company-operated and franchised stores. As of September 2025, Recode had opened 24 stores across 14 states, comprising 3 company-owned stores and 21 franchise outlets.

The business offers more than 350 SKUs across makeup, skincare, body care, and beauty accessories, catering to consumers mindful of their budgets. In terms of finances, Recode has demonstrated significant growth, reporting total earnings of ₹57.5 crore and a net profit of ₹9.1 crore for the nine months ending December 2025, compared with ₹47.9 crore in revenue and ₹3.3 crore in profit for FY25.

Recode Studios is seeking funds through a mix of a fresh issue and an offer-for-sale (OFS). The initial public offering (IPO) comprises a fresh issue of ₹39.6 crore and an OFS of ₹5 crore, bringing the total issue size to ₹44.6 crore. At the highest price point, the company will achieve a post-issue market capitalisation of approximately ₹168 crore.

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The proceeds from the IPO are intended to establish a new warehouse facility in Ludhiana, invest in marketing and brand development, meet working capital requirements, and address general corporate needs. Seren Capital Pvt Ltd serves as the book-running lead manager, while Mudra RTA Ventures Private Limited acts as the registrar for the issue. Asnani Stock Broker Pvt. Ltd. is designated as the Market Maker for the company.