Identical Brains Studios is a leading provider of computer-generated visual effects (VFX) services, offering a comprehensive suite of services across diverse sectors such as films, web series, TV series, documentaries, and commercials. With operations based in India, the company has successfully served some of the most renowned film and content producers, including major Bollywood studios. The core focus of Identical Brains Studios is to transform imagination into reality by creating captivating visuals that engage audiences and enhance storytelling. Their innovation in VFX technology has placed them at the forefront of the industry, enabling them to deliver exceptional results for high-profile projects.

The Identical Brains Studios IPO is a Book Built Issue offering a total of ₹19.95 Crores, comprising 36.94 Lakh fresh issue shares. The IPO subscription period opens on December 18, 2024, and closes on December 20, 2024. The allotment is expected to be finalized on or around December 23, 2024, with the shares being listed on the NSE SME on or about December 26, 2024.

The share price band for the Identical Brains Studios IPO is set between ₹51 and ₹54 per equity share. At the upper price band of ₹54 per share, the market capitalization of Identical Brains Studios would be approximately ₹75.74 Crores. The lot size of the IPO is 2,000 shares, and the minimum investment for retail investors is ₹1,08,000. High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,16,000 (2 lots). The book-running lead manager for the IPO is Socradamus Capital Private Limited, and the registrar is Bigshare Services Private Limited.

The Grey Market Premium (GMP) for the Identical Brains Studios IPO is currently ₹11, which indicates a potential listing gain of 20.37% based on the company's financial performance. However, it is important to note that trading in the grey market is not a reliable way to gauge the true price discovery of the shares, as it is driven by demand and supply in an unregulated manner.

As of December 16, 2024, the IPO price of ₹54 is expected to list at ₹58, offering potential gains of 20.37%. The IPO is attracting significant interest due to the growth prospects of the VFX industry and the company’s strong financial track record. Identical Brains Studios' rapid growth in revenue and profitability makes this IPO a promising opportunity for risky investors.

Identical Brains Studios IPO Review
The company is led by Raghvendra Rai, who has over a decade of experience in the VFX industry. Under his leadership, Identical Brains Studios has evolved into a leading VFX service provider. The company’s expertise in developing proprietary workflow processes and technologies has allowed it to offer cutting-edge VFX services to a diverse range of film producers.

Identical Brains Studios has shown consistent growth in its financial performance, with revenues from operations reaching ₹1,139.49 Lakh for the period ending on September 30, 2024. The EBITDA for the same period was ₹433.14 Lakh, demonstrating the company’s strong operational efficiency. Profit after tax for the period ended on October 31, 2024 stood at ₹240.54 Lakh.

In terms of valuation, Identical Brains Studios' IPO is priced at a pre-issue P/E ratio of 10.42x and a post-issue P/E ratio of 14.17x, which is competitive when compared to the industry P/E ratio of 15x. The company has a Return on Capital Employed (ROCE) of 103.52% and a Return on Equity (RoE) of 71.66% for FY24, indicating strong profitability and efficient use of capital.

Given the financial strength, growth prospects, and the GMP trend, the Identical Brains Studios IPO presents a strong investment opportunity for risk-tolerant investors. The potential listing gains, combined with the company's dominant position in the VFX industry, make it an attractive prospect.

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