Ludhiana-based beauty and personal care firm Recode Studio has seen its initial public offering (IPO) achieve remarkable success, garnering bids for approximately Rs 7,000 crore against a target of Rs 45 crore. This overwhelming response led to the SME issue being oversubscribed more than 155 times.
The IPO, which offered shares at a price band of Rs 150-158 per equity share with a lot size of 800 shares, was open for subscription from May 5 to May 7. The strong investor demand has also significantly boosted the company's Grey Market Premium (GMP), which jumped over four times from Rs 11-12 at the time of announcement to Rs 48-50 ahead of its market debut.
Stellar Demand Across Investor Categories
The public issue, despite the broader market's struggles, witnessed exceptional bidding from all investor segments. The non-institutional investors (NIIs) portion was booked an astounding 396 times, while the retail quota saw bids exceeding 214 times. In total, the company received nearly 1.57 lakh applications, indicating widespread interest.
Recode Studio successfully raised Rs 12.67 crore from five anchor investors prior to the main subscription period. The Rs 45 crore IPO comprised a fresh share sale worth Rs 5 crore and an offer for sale of up to 26.77 lakh equity shares valued at Rs 42 crore.
From 'Shark Tank' to Stock Market Success
Interestingly, Recode Studio had previously featured on a popular entrepreneurship reality show, 'Shark Tank,' but failed to secure funding from the investors. Despite this initial setback, the company's journey to the stock market has proven highly successful, reflecting strong confidence from public investors.
Incorporated in 2021, Recode Studio operates under the 'Recode' brand, focusing on branding, sourcing, and selling a diverse range of beauty and personal care products across India. Their product line includes make-up, skincare, body care items, and various beauty accessories.
The company's shares are slated for listing on the BSE SME platform on Tuesday, May 12. At the IPO price, Recode Studio commands a market capitalization of Rs 168 crore. Seren Capital served as the sole book-running lead manager for the issue, with Mudra RTA Ventures acting as the registrar.