Recode Studios Limited, a beauty and personal care company operating under the “Recode” brand, launched its IPO to raise approximately ₹44.59 crore through a combination of fresh issue and offer for sale.

The IPO has attracted investor interest because of the company’s presence in India’s rapidly growing:

• Cosmetics sector
• Beauty products market
• Skincare segment
• Digital beauty retail ecosystem

The shares are proposed to be listed on the BSE SME platform.

IPO Structure And Issue Size

The IPO is structured as a Book Built Issue comprising:

• Fresh Issue: 0.25 crore shares aggregating to ₹39.55 crore
• Offer For Sale (OFS): 0.03 crore shares aggregating to ₹5.04 crore

The total issue size stands at:

• ₹44.59 crore

The fresh issue proceeds are expected to support expansion and business growth initiatives.

Important IPO Dates

IPO Timeline

• IPO Opening Date: May 05, 2026
• IPO Closing Date: May 07, 2026
• Allotment Date: Expected on May 08, 2026
• Tentative Listing Date: May 12, 2026

The shares are proposed to list on the BSE SME exchange.

IPO Price Band

The company fixed the IPO price band at:

• ₹150 to ₹158 per equity share

At the upper price band of ₹158 per share, the company’s estimated market capitalization stands at approximately:

• ₹168.18 crore

Lot Size And Minimum Investment

The IPO lot size was fixed at:

• 800 shares per lot

Retail Investor Requirement

Retail investors are required to apply for:

• Minimum 2 lots
• Total shares: 1,600
• Minimum investment: ₹2,52,800

HNI Requirement

High-Net-Worth Individuals (HNIs) must apply for:

• Minimum 3 lots
• Total shares: 2,400
• Minimum investment: ₹3,79,200

The higher investment requirement is common in SME IPO structures.

About Recode Studios Limited

Recode Studios Limited operates in the beauty and personal care (BPC) sector under the “Recode” brand in India.

The company focuses on:

• Branding
• Marketing
• Procurement
• Distribution of cosmetics and skincare products

Its business model is centered on brand development and retail distribution.

Product Portfolio

The company offers a range of beauty and personal care products including:

• Make-up products
• Skincare products
• Body care items
• Beauty accessories

The company caters to consumers through multiple sales channels across online and offline platforms.

Sales And Distribution Channels

Recode Studios distributes products through:

• Online marketplaces
• COCO stores
• FOFO stores
• Company website
• Mobile application

The multi-channel approach helps the company expand customer reach across different consumer segments.

Asset-Light Business Model

The company follows an asset-light business model, where manufacturing is outsourced to third-party manufacturers.

Under this strategy, the company primarily focuses on:

• Brand building
• Product marketing
• Customer acquisition
• Distribution management

This model helps reduce large capital expenditure requirements for manufacturing infrastructure.

Revenue Model Of The Company

The company earns revenue primarily through sales of:

• Cosmetics
• Beauty products
• Skincare products
• Personal care products

The beauty and personal care sector has witnessed significant growth in India due to rising consumer demand and increasing digital adoption.

Growing Beauty And Personal Care Industry

India’s beauty and personal care market has expanded rapidly due to factors such as:

• Rising disposable income
• Social media influence
• E-commerce growth
• Increasing beauty awareness

Demand for cosmetics and skincare products has increased significantly across urban and semi-urban markets.

Digital Platforms Driving Growth

Digital platforms have transformed the beauty retail industry.

Consumers increasingly purchase beauty products through:

• Mobile apps
• Online marketplaces
• Social media channels
• Brand websites

Companies with strong digital presence are benefiting from changing shopping habits.

Franchise And Retail Expansion

The company operates through both:

• COCO (Company Owned Company Operated) stores
• FOFO (Franchise Owned Franchise Operated) stores

This hybrid retail model helps the company balance direct brand control with scalable expansion opportunities.

Brand Building Focus

Recode Studios focuses heavily on brand positioning and customer engagement.

Beauty companies often invest significantly in:

• Marketing campaigns
• Influencer collaborations
• Digital promotions
• Product visibility

Strong brand recognition remains critical in the cosmetics industry.

Role Of Lead Manager And Registrar

The IPO is managed by:

• Seren Capital Private Limited as the Book Running Lead Manager

The registrar for the issue is:

• Mudra RTA Ventures Private Limited

These entities manage IPO-related operations including allotment and investor servicing.

Grey Market Premium (GMP) Status

The Grey Market Premium (GMP) of Recode Studios IPO was reported at:

• ₹189

The strong GMP reflects positive unofficial market sentiment ahead of listing.

However, GMP remains speculative and unofficial.

Understanding Grey Market Premium

Grey Market Premium refers to unofficial trading of IPO shares before listing on stock exchanges.

The premium depends on:

• Market demand
• Investor expectations
• Supply conditions

However:

• GMP is not regulated
• It does not guarantee listing performance
• Investors should evaluate company fundamentals independently

The grey market should only be viewed as an informal indicator.

Beauty Sector Attracting Investor Attention

The beauty and personal care industry has increasingly attracted investor interest due to:

• Strong consumption growth
• Expanding online retail
• Brand-driven business models
• Rising youth population

Beauty-focused brands have seen rapid growth through digital-first marketing strategies.

Competition In Cosmetics Industry

The beauty industry remains highly competitive with participation from:

• Domestic brands
• International companies
• Digital-first startups
• Retail chains

Companies compete on factors including:

• Product quality
• Pricing
• Brand image
• Distribution reach

Risks Associated With The Business

The company may face risks related to:

• Changing consumer preferences
• Competitive pricing pressure
• Marketing costs
• Dependence on third-party manufacturing
• Brand reputation management

Consumer trends in beauty products can change rapidly.

Importance Of Online Sales

Online sales channels continue playing a major role in the growth of beauty brands.

Digital commerce enables companies to:

• Reach wider audiences
• Launch products quickly
• Gather customer feedback
• Improve direct engagement

The online beauty market in India continues expanding rapidly.

SME IPO Market Activity

SME IPOs have witnessed strong investor participation in recent years.

Many small and medium-sized businesses are using capital markets for:

• Expansion funding
• Brand growth
• Working capital
• Market visibility

Consumer-focused brands often attract retail investor interest in SME segments.

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