Behind every blockbuster film and streaming sensation lies an invisible world of visual magic—and Identical Brains Studios Limited is inviting investors to peek behind that curtain. This VFX company is set to transform the investment landscape with an initial public offering that promises to capture the imagination as deftly as their digital effects capture cinematic moments.
From December 18 to 20, 2024, Identical Brains Studios Limited will unveil an IPO that's as precisely crafted as their visual effects, seeking to raise ₹19.95 crores with 36.94 lakh shares priced between ₹51 and ₹54. The offering is strategically designed to welcome both passionate retail investors and seasoned high-net-worth individuals, with entry points ranging from ₹108,000 for a 2,000-share lot to more extensive investment opportunities. Meticulously timed, the share allotment is scheduled for December 23, 2024, with the company preparing to make its dazzling debut on the NSE SME platform on December 26, 2024. This is more than an investment—it's a ticket to the future of digital storytelling, where creativity meets financial opportunity.
Identical Brains Studios IPO is a fundraise worth ₹19.95 crores comprising purely of a fresh issue of 36.94 lakh shares with 186,000 shares reserved for the market maker Rikhav Securities Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from December 18, 2024, to December 20, 2024, providing an opportunity for investors looking to gain a stake in the VFX services sector.
| Identical Brains Studios IPO Date | December 18, 2024 - December 20, 2024 |
| Issue Type | Book Built Issue IPO |
| Price Band | ₹51 to ₹54 per share |
| Face Value | ₹10 per share |
| Lot Size | 2,000 shares |
| Fresh Issue Size | 3,694,000 shares worth ₹19.95 crores |
| Total Issue Size | 3,694,000 shares worth ₹19.95 crores |
| Listing at | NSE SME |
| Market Maker Portion | 186,000 - Rikhav Securities Ltd |
| Share Holding Post Issue | 14,025,958 |
| Share Holding Pre Issue | 10,331,958 |
The Identical Brains Studios IPO opens for subscription on December 18, 2024, and closes on December 20, 2024, with allotment scheduled for December 23, 2024.
| IPO Open Date | December 18, 2024 (Wednesday) |
| IPO Close Date | December 20, 2024 (Friday) |
| Basis of Allotment | December 23, 2024 (Monday) |
| Initiation of Refunds | December 24, 2024 (Tuesday) |
| Credit of Shares to Demat Account | December 24, 2024 (Tuesday) |
| Listing Date on BSE SME | December 26, 2024 (Thursday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 20, 2024 (Friday) |
Founded in 2019, Identical Brains Studios Limited specializes in computer-generated visual effects (VFX) for films, web series, TV shows, documentaries, and commercials. The company has gained significant recognition for its contributions to the industry, delivering high-quality VFX services that have supported projects nominated for prestigious awards, including the Filmfare OTT Awards, Filmfare Awards, and Dadasaheb Phalke Awards.
Notable accolades include winning two Filmfare OTT Awards for Best Visual Effects for “Scam 1992: The Harshad Mehta Story” (2020) and “Rocket Boys” (2022) in collaboration with Variate Studios LLP. Additionally, the company secured a Dadasaheb Phalke Award for Best Visual Effects for its work on the film “Phone Bhoot” (2022), solidifying its reputation as a leading player in the VFX industry.
The company plans to allocate the net proceeds from its issue toward several key initiatives. These include renovating its existing office and studio in Andheri, establishing a Colour Grading Digital Intermediate (DI) and Sound Studio, and setting up new branch offices in Andheri and Lucknow. Additionally, funds will be used to purchase advanced computers, storage systems, and software to enhance its operational capacity across current facilities.
The proceeds will also address incremental working capital requirements and support general corporate purposes, ensuring the company strengthens its infrastructure while expanding its presence in key markets. These investments aim to bolster the company's capabilities and position it for long-term growth in the VFX and post-production industry.
Identical Brains Studios Limited reportedly saw an annual rise of 150.71% in its revenue and 231.5% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of March 31, 2024, the key performance indicators reflect the company's financial health with Return on Equity (RoE) of 71.66%, Return on Capital Employed (RoCE) at 103.52% and a Debt-to-Equity ratio of 0.02. The Return on Net-Worth (RoNW) stands at 44.42%, and the PAT Margin was 26.62%. The Price to Book Value was 4.64. The company’s market capitalisation is ₹75.74 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 1,149.62 | 2,026.38 | 808.26 | 390.75 |
| Assets | 2,183.64 | 1,702.39 | 475.50 | 226.38 |
| Net Worth | 1,436.08 | 1,203.62 | 288.51 | 127.23 |
| Profit After Tax | 240.54 | 534.65 | 161.28 | 51.01 |
| Reserves & Surplus | 402.89 | 514.82 | 287.51 | 126.23 |
| Total Borrowing | 17.09 | 19.04 | - | - |
Amount in ₹ crores
The pre-IPO EPS is at ₹5.17 while the post-IPO EPS will be ₹3.43. Similarly, the pre-IPO Price to Earnings ratio is 10.44 and will become 15.74 post-IPO.
Identical Brains Studios Limited stands out in the VFX industry due to its integrated technology and infrastructure, enabling the delivery of end-to-end services. Its operations in strategically located hubs provide proximity to key entertainment centers, facilitating collaboration and efficient turnaround times. The company has a skilled creative and technical workforce, complemented by an experienced management team with strong industry relationships, driving strategic decisions and innovation. These factors have helped build its reputation as a trusted partner in the entertainment industry, ensuring significant revenue visibility and creating opportunities for long-term margin expansion.
Additionally, the company’s client-centric approach, use of advanced technology, and active participation in industry events enhance its market image. By offering scalable and integrated service capabilities, Identical Brains Studios reduces dependency on external vendors while maintaining quality and cost efficiency. This strong operational foundation positions the company as a key player in a rapidly growing industry, with the potential for sustained growth and profitability.
The company faces challenges from its heavy reliance on relationships with major Bollywood studios and top customers, making it vulnerable to any changes or loss of contracts. This dependency, combined with the dynamic nature of the entertainment industry, means fluctuations in content production or audience preferences could negatively impact revenue. The lack of long-term commitments from customers adds further uncertainty to the company’s revenue stability.
Intense competition in the VFX sector and the rapid pace of technological advancements demand continuous innovation and investment, which can strain resources. Additionally, the company’s history of delayed compliance with regulatory filings raises concerns about governance. Recent consolidations among film and content producers could reduce the breadth of its customer base, increase competition, and limit negotiating power, posing risks to future growth and profitability.
Investors eyeing Identical Brains Studios Limited's IPO have an opportunity to enter the dynamic VFX services sector. This offering is more than a financial move—it’s a chance to engage with a transformative media effects journey. To make a prudent investment, prospective buyers should thoroughly evaluate the company’s operational model, financial health, and long-term strategy.
Careful analysis of the offer document, past performance, competitive edge, and alignment with industry trends is essential. Aligning the investment with personal goals, consulting a financial advisor, and understanding the risk-reward balance can help turn this IPO into a calculated step towards harnessing the potential of a growing industry.
What is the Identical Brains Studios IPO?
The Identical Brains Studios Limited IPO is an NSE SME offering consisting of 36.94 lakh equity shares with a face value of ₹10, aiming to raise to ₹19.95 crore. The price band has been set between ₹51 to ₹54 per share, with a minimum order quantity of 2,000 shares. This IPO will be open for subscription from December 18, 2024, to December 20, 2024. Socradamus Capital Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while Pikhav Secruties Limited is the market maker.
When will the Identical Brains Studios IPO open?
The Identical Brains Studios IPO will open for subscription on December 18, 2024, and will close on December 20, 2024.
When is the Identical Brains Studios IPO listing date?
The tentative listing date for the Identical Brains Studios IPO is Thursday, December 26, 2024.
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