Identical Brains Studios IPO: A Visual Future for Investors

Identical Brains Studios Limited is gearing up to transform the Indian VFX landscape with its upcoming IPO, amounting to ₹19.95 Crores. The fresh issue will comprise 36.94 Lakh shares, offering a price band of ₹51 to ₹54 per share. The IPO subscription period opens on December 18, 2024, and closes on December 20, 2024. The shares are expected to be listed on the NSE SME on December 26, 2024. This IPO offers an exciting opportunity for retail investors, with a minimum investment requirement of ₹1,08,000 (for 2,000 shares).

With a market capitalization of ₹75.74 Crores at the upper price band of ₹54, the company is set to further expand its reach in the booming VFX industry, already serving major Bollywood studios and prominent content producers. Led by Raghvendra Rai, who has over ten years of expertise in the VFX industry, the company has emerged as a leader in the development of proprietary workflows and cutting-edge visual effects technologies.

IPO Subscription Status & Grey Market Premium Insights

As of December 18, 2024, the Identical Brains Studios IPO has been subscribed 1.37 times, signaling strong investor interest. The Grey Market Premium (GMP) is currently at ₹28, reflecting an anticipated 51.85% listing gain based on current market sentiment.

The IPO GMP, though not a definitive indicator of final listing price, provides an early glimpse into potential investor returns. The premium has fluctuated recently, reaching a high of ₹28 on December 17, 2024, indicating growing optimism in the company’s future performance.

Financials & Valuation

The company has reported impressive financials, with a Revenue from operations of ₹1,139.49 Lakh for the period ending September 30, 2024, marking significant growth compared to previous years. For the fiscal year 2024, the EBITDA stood at ₹433.14 Lakh, while the Profit After Tax (PAT) reached ₹240.54 Lakh. These metrics demonstrate the company’s strong operational efficiency and financial health.

With a pre-issue P/E ratio of 10.42x and a post-issue P/E ratio of 14.17x, the company’s valuation is attractive compared to the industry P/E ratio of 15x. Additionally, the company boasts a Return on Capital Employed (ROCE) of 103.52% and a Return on Equity (RoE) of 71.66% for FY 2024, indicating its strong profitability and operational efficiency.

IPO Allotment & Listing Date

The Identical Brains Studios IPO allotment date is set for December 23, 2024, and investors can check their allotment status by visiting the registrar’s website and entering their application details. Once allotments are finalized, shares will be listed on the NSE SME on December 26, 2024.

Why You Should Consider Applying

This IPO presents an opportunity to invest in a rapidly growing company in the VFX services sector, which has seen significant demand from the film and entertainment industry. With strong financial performance, impressive growth metrics, and a promising Grey Market Premium, Identical Brains Studios has the potential for solid listing gains.

The Upcoming IPOs in this week and coming weeks are Transrail Lighting, Mamata Machinery, DAM Capital  Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO is Identical Brain Studios and NACDAC Infrastructure.
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