Basilic Fly Studio IPO(NSE SME) Overview

Basilic Fly Studio’s IPO of 68.4 lakh equity shares comprises a fresh issue of 62.4 lakh shares by the company and an offer-for-sale of 6 lakh shares by the promoters. Basilic Fly Studio Limited is a visual effects (VFX) studio headquartered in Chennai, India with subsidiaries operating in Canada and the UK.

IPO opensSep 1, 2023
IPO ClosesSep 5, 2023
IPO Size (Rs.) ₹66.35 Cr
IPO Size (shares)6,840,000 shares
BreakupFresh 6,240,000 shares (₹60.53 Cr); OFS  (600,000 shares,  ₹5.82 Cr.)
Face Value:₹ 10
IPO Price in Rs :₹92 to ₹97 per share
Minimum Lot1200 Shares
Listing AtNSE SME
Market Maker15%
QIB Quota17%
NII Quota12.75%
Retail Quota29.75%
 Lead ManagerGYR Capital Advisors
RegistrarPurva Sharegistry
Market makerShare India securities

About Basilic Fly Studio Limited:

  • Basilic Fly Studio is a visual effects (VFX) studio headquartered in Chennai, India.
  • It was founded in 2012 by Balakrishnan and Yogalakshmi S. The studio has since expanded to have offices in Pune, Vancouver, and London.
  • Basilic Fly Studio offers a wide range of VFX services, including:
    • Digital matte painting
    • Compositing
    • Animation
    • Motion graphics
    • 3D modeling and animation
    • VFX for feature films
    • VFX for television and web series
    • VFX for commercials
  • The studio has worked on a number of high-profile projects, including:
    • “RRR” (2022)
    • “Kaithi” (2019)
    • “The Family Man” (2019-present)
    • “Ponmagal Vandhal” (2020)
    • “The Lion King” (2019)
  • Basilic Fly Studio is known for its high-quality work and its commitment to innovation. The studio is constantly pushing the boundaries of VFX technology, and it is always looking for new ways to create stunning visual experiences.
  • As of March 31, 2023, the workforce expanded to 341 employees, up from 234 on March 31, 2022.
  • The studio is equipped with state-of-the-art VFX facilities.
  • The studio has won numerous awards for its work, including the National Film Award for Best Visual Effects.

Basilic Fly Studio IPO: Financials

Particulars / Rs LacsFYE 23FYE 22FYE 21
Revenue (total income)7,895.152,528.781730.93
Profit Before Tax3,542.65116.2252.62
Profit after Tax2,774.0290.133.65
Share Capital1700100100
Net Worth3166.98394.16297.94
EPS 16.320.533.36
Net Asset Value18.6339.4229.75
Total borrowings   
– Long Term252.58309.0515.78
– Short Term174.5104.1819.28
Post issue Share Capital2,324
IPO price97.0
EPS Fy2311.9
PE Fy238.1
Market cap in Lacs22,542.8
Market Cap/sales2.9

Anchor Investors

Basilic Fly Studio IPO: Salient Points

  • The global animation and visual effects market size was estimated at USD 168 billion in 2021 and is projected to grow to USD 290 Bn by 2024 at a CAGR of 10.94% between 2020 and 2026 .
  • One of the main factors leading to the development of the VFX market worldwide is the introduction of augmented reality (AR). The increasing demand for digital content has created a need for innovation in visual effects for new experiences like AR.
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  • asilic Fly Studio is a leading VFX studio in India. It is known for its high-quality work and its commitment to innovation. The studio is well-positioned to grow in the years to come.
  • It posted excellent performance for FY23.
  • On completion of its expansion plans, it is set for fast-forward mode.
  • Company intends to utilize the Net Proceeds for the following objects

  • Company proposes to set up two new studios at Hyderabad and Salem, two strategic locations with a strong pool of VFX talent.
  • Hyderabad is known for its availability of CG expertise, while Salem is an emerging VFX talent hotspot. These new studios will help it to expand its reach and meet the growing demand for VFX services.
  • Key Performance Indicators of Basilic Fly Studio IPO.
IndicatorF.Y 2022-23F.Y 2022-21F.Y 2021-20
Revenue from Operations7,866.742,515.841,727.07
Total Income7,895.152,528.781,730.93
Net Profit for the Year / Period2,774.0290.133.65
Return on Net Worth87.59%22.86%11.31%
Return on Equity155.63%23.54%11.99%
Return on Capital Employed104.73%15.78%21.34%
Debt-Equity Ratio0.14%1.10%0.12%
  • Peers:
CompanyFVP/E RatioRoNW (%)NAVPAT ( Rs Lacs)
Basilic Fly Studio108.187.5918.632774.02
Prime Focus Limited121.3584.875.2419449.1
Phantom Digital Effects1034.836.6337.981619.56
  • The total income of company for fiscal year 2023 was ₹ 7895.15lacs against ₹ 2528.78 lacs total income for Fiscal year 2022. An increase of 212.21% in total income. The VFX industry’s profitability upswing is fueled by a booming entertainment market, driven by the popularity of advanced gadgets like 4G and 5G.
  • Export sales soared by 75.49%, accompanied by an overall sales increase of 24.23%.
  • Furthermore, to amplify its business potential, company has established a wholly owned subsidiary (WOS) in the UK (London) on April 6, 2022.
  • Basilic Fly Studio IPO is being offered at ts PE ratio of 8.1x (fy23 earnings).
  • I intend to apply in Basilic Fly Studio IPO subject to availability of funds. This is based on my assessment of its performance which looks quite spectacular and future expansion plans are in place.
  • The issue could make a new record in subscription and based on current trends can result in windfall profit for allottees.
  • GMP as reported on social media has been around Rs. 220.
  • GYR Capital Advisors is the lead manager. Past issues handled by them include Srivari Spices and Foods Limited, Essen Speciality Films Limited, MCON Rasayan India Limited, Agarwal Float Glass India Limited, Anlon Technology Solutions Limited, Uma Converter Limited, Sabar Flex India Limited, Mafia Trends Limited, Pritika Engineering Components etc.
  • SME IPO are quite illiquid and volatile and exit options sometimes is delayed.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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