Identical Brains Studios IPO: The initial public offering (IPO) of Identical Brains Studios opened for subscription earlier today, December 18 and will close on December 20. The company, which aims to raise ₹20 crore through the SME IPO, has set a price band in the range of ₹51-54 per share.

Identical Brains Studios IPO has been fully subscribed till 11:40 am on the first day of bidding. It was booked 1.85 times, receiving bids for 45.42 lakh equity shares as compared to 24.60 lakh shares on the offer.

The retail portion of the public issue was subscribed the most 2.71 times while the Non Institutional Investors’ (NII) category received 2.3 times bids. However, the Qualified Institutional Buyers (QIB) are yet to bid for the IPO.

Identical Brains Studios GMP today

The company’s shares in the grey market continued trading at a premium of ₹38. This indicates an estimated listing price of ₹92, up 70.37 percent from the IPO price of ₹54. The GMP was the same as in the previous session (December 17). However, it rose from ₹32 on December 16 and ₹13 on December 15.

However, one must note that grey market premium is only an indicator of how the company’s shares are performing in the unlisted market and can change quickly.

Identical Brains Studios IPO details

The IPO is entirely a fresh issue of 36.94 lakh shares with not offer for sale component. For prospective investors, the minimum lot size for application is 2,000 shares and in multiples thereof. Retail investors are required to invest a minimum amount of Es 1.08 lakh to participate in the offering.

Identical Brains Studios IPO also raised ₹5.66 crore from anchor investors on December 17.

The company plans to allocate the net proceeds from the issue towards various strategic objectives, including capital expenditure for renovating its existing office and studio in Andheri, setting up a Colour Grading Digital Intermediate (DI) and Sound Studio, and establishing a new branch office in Andheri. Additionally, funds will be utilized to open a new branch office in Lucknow and to enhance the company’s infrastructure by purchasing computers, storage systems, and software to strengthen its current facilities. The proceeds will also support incremental working capital requirements and be used for general corporate purposes.

Identical Brains IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Socradamus Capital Private Limited is the book running lead manager of the Identical Brains Studios IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Identical Brains Studios IPO is Rikhav Securities Limited.

The allotment for the Identical Brains Studios IPO is expected to be finalised on Monday, December 23, 2024. The IPO will list on BSE, NSE with the tentative listing date fixed as Thursday, December 26, 2024.

Review

“The company is engaged in providing comprehensive VFX services for electronic media, films etc. It posted quantum jump in its top and bottom lines from FY24 onwards. Its portfolio includes few upcoming projects from well-known production houses. Based on its FY25 annualized earnings, the issue appears fully priced. Investors may park funds for medium to long term,” said Dilip Davda of Chittorgarh.com.

About Identical Brains Studios

Founded in 2019, Identical Brains Studios Limited specializes in providing cutting-edge computer-generated visual effects (VFX) services. The company caters to a diverse range of projects, including feature films, web series, TV series, documentaries, and commercials, delivering high-quality visual storytelling that enhances the cinematic experience.

The company has made significant contributions to acclaimed films and series, earning recognition in the entertainment industry. Notably, its work has been associated with projects that received multiple prestigious nominations. These include two Filmfare OTT Awards nominations, a Filmfare Awards nomination, and a Dadasaheb Phalke Awards nomination, all in the Best Visual Effects category.

Identical Brains Studios has also been celebrated for its award-winning work. It won 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 clinched the Dadasaheb Phalke Award for Best Visual Effects for its remarkable work in Phone Bhoot (2022).

Identical Brains Studios Limited reported remarkable financial growth, with revenue surging by 150.71 percent and profit after tax (PAT) soaring by 231.5 percent between the financial years ending March 31, 2023, and March 31, 2024.

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