Identical Brains Studios, a prominent provider of computer-generated visual effects (VFX) services, is launching its IPO with a fresh issue of ₹19.95 Crores. The IPO is completely book built, offering 36.94 lakh shares. The subscription period for this Identical Brains Studios IPO opened on December 18, 2024, and closes on December 20, 2024. Investors can subscribe to shares in the price band of ₹51 to ₹54 per equity share, with a lot size of 2,000 shares. This equates to a minimum investment of ₹1,08,000 for retail investors. High-Net-Worth Individuals (HNIs) are required to invest ₹2,16,000 for two lots, or 4,000 shares.

The market capitalization of Identical Brains Studios at the upper price band of ₹54 per share is estimated at ₹75.74 Crores. The company's operations are primarily based in India, serving major Bollywood studios and other prominent content producers. Their offerings span a wide range of services for films, web series, TV series, commercials, and documentaries. Under the leadership of Raghvendra Rai, who has a decade of experience in the VFX industry, the company has built a reputation for developing cutting-edge VFX technologies.

As per the financials for the period ending September 30, 2024, Identical Brains Studios reported revenues of ₹1,139.49 lakh, marking a significant increase from previous years. The company also posted an EBITDA of ₹433.14 lakh and a profit after tax (PAT) of ₹240.54 lakh. These figures show a robust performance and suggest that the IPO is fairly priced, with a pre-issue P/E ratio of 10.42x and a post-issue P/E ratio of 14.17x, which is lower than the industry P/E of 15x. ROCE (Return on Capital Employed) for FY24 stands at 103.52%, while ROE (Return on Equity) is 71.66%, reinforcing the company's strong financial health.

Grey Market Premium (GMP) for Identical Brains Studios IPO has been fluctuating, with a significant rise in the past few days. As of December 17, 2024, the GMP is estimated at ₹28, showing a potential listing gain of 51.85%. This increase in GMP suggests that Identical Brains Studios is seeing strong demand in the grey market, indicating a potential for substantial gains upon listing. However, the GMP is not an official measure of listing price and should only be used for informational purposes.

IPO Subscription Status and Allotment Process

As of 7:00 PM on December 20, 2024, the Identical Brains Studios IPO was subscribed 506.09 times, a remarkable sign of strong investor interest. Retail investors and HNI investors have shown tremendous support, with the IPO subscription status reflecting high demand. The allotment date for the IPO is expected on December 23, 2024, and can be checked online through the registrar’s website. Investors can easily track their allotment status by entering their application number, PAN, or DP client ID.

Identical Brains Studios IPO Review

Looking at the financial performance of Identical Brains Studios, the company has shown strong growth over the years. With a revenue growth of over 40% from FY2022 to FY2024 and a solid profit margin, this IPO offers investors an opportunity to tap into a growing industry. The VFX market is expanding rapidly, with demand increasing for high-quality digital effects across films, series, and commercials. This positions Identical Brains Studios as a promising player in this space.

The company's IPO also attracts attention due to the GMP, which suggests potential listing gains. The increasing demand for VFX services and the company’s solid financials make the IPO worth considering for risk-seeking investors looking for potential short-term listing gains. While the P/E ratio is slightly below the industry average, the strong ROCE and ROE suggest that the company could deliver strong returns over the long term.

Conclusion

In conclusion, the Identical Brains Studios IPO presents an exciting opportunity for investors seeking to capitalize on the booming VFX industry. With strong financials, a good track record, and promising growth potential, the IPO is likely to see significant demand. The GMP and listing gains further support this view. Risky investors may consider subscribing to the Identical Brains Studios IPO for potential short-term gains.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Unimech Aerospace, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro and Newmalayan Steel. For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX