Identical Brains Studios Ltd., incorporated in 2019, is set to launch an SME IPO under the book-built issue category, aiming to raise Rs. 19.95 crore. Specializing in computer graphics visual effects (VFX) services, the company has worked on high-profile projects, contributing to films, TV series, web series, commercials, and documentaries. Its VFX work has earned prestigious nominations, including Filmfare and Dadasaheb Phalke Awards. The company is known for successful collaborations, such as winning Filmfare OTT Awards for Scam 1992 and Rocket Boys.
Identical Brains IPO Overview
The IPO will open on 18th December 2024 and close on 20th December 2024. The offer price for Identical Brains IPO shares is Rs. 51 to Rs. 54 each, with an issue size of 36.94 lakh shares. The IPO proceeds will support the renovation of the studio and office, the construction of new facilities, and the opening of a new branch in Lucknow. The listing is expected on 26th December 2024, at the NSE SME platform.
Company Financials
Identical Brains Studios has shown impressive growth, with revenue increasing by 150.71% and PAT (Profit After Tax) growing by 231.5% for the financial year ending March 2024.
- FY2024: Total Revenue: Rs. 2,026.38 Lac | PAT: Rs. 534.65 Lac
- FY2023: Total Revenue: Rs. 808.26 Lac | PAT: Rs. 161.28 Lac
Objectives of the Issue
The funds raised from the IPO will be used for:
- Renovating the current studio and office in Andheri.
- Constructing a sound studio and color grading DI.
- Establishing a new branch office in Lucknow.
- Enhancing technology infrastructure and capital expenditure for future growth.
IPO Evaluation and Peer Comparison
The Identical Brains IPO gmp has a P/E ratio of 10.42x, significantly lower than the industry average of 23.46x, indicating a potential undervaluation. Comparatively, peers like Digikore Studios and Phantom Digital Effects have higher P/E ratios, making this IPO an attractive investment for those looking for a competitive entry point.
IPO Strengths
- High-quality VFX services recognized in prestigious awards.
- Experienced management with industry ties.
- Potential for long-term growth in the booming entertainment sector.
IPO Weaknesses
- Dependence on relationships with major Bollywood studios.
- Vulnerability to shifts in consumer preferences and content demand.
- Risks associated with contract cancellations by filmmakers.
IPO Details
- Opening Date: 18th December 2024
- Closing Date: 20th December 2024
- Price Range: Rs. 51 – Rs. 54 per share
- Issue Size: 3,694,000 shares (Rs. 19.95 crore)
- Listing: NSE SME
Lot Size
- Retail investors: Minimum 1 Lot (2,000 shares) – Rs. 1,08,000
- HNI Investors: Minimum 2 Lots (4,000 shares) – Rs. 2,16,000
IPO Timetable
- IPO Opening: 18 December 2024
- IPO Closing: 20 December 2024
- Allotment Date: 23 December 2024
- Refund Initiation: 24 December 2024
- Listing Date: 26 December 2024
Conclusion
The Identical Brains Studios IPO presents a strong opportunity to invest in a rapidly growing VFX company with a proven track record in the entertainment sector. However, potential investors should carefully consider the reliance on Bollywood partnerships and the dynamic nature of the entertainment industry before making investment decisions.
