Identical Brains Studios Limited offers computer-generated visual effects (“VFX”) services. The company provides VFX services for projects such as films, web series, TV series, documentaries, and commercials. Identical Brains Studios IPO is set to raise Rs 19.95 crores.
IPO opens
December 18, 2024
IPO Closes
December 20, 2024
IPO Size (Rs.)
₹19.95 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹51 to ₹54 per share
Minimum Lot
2,000 Shares
Listing At
NSE SME
QIB Quota
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Socradamus Capital Private Limited
Registrar
Bigshare Services Pvt Ltd
Market maker
Rikhav Securities Limited.
About: Identical Brains Studios
ncorporated in 2019, Identical Brains Studios Limited specializes in providing computer-generated Visual Effects (VFX) services.
Company caters to projects like films, web series, TV series, documentaries, and commercials.
Some of its notable productions likeinclude Scam 1992: The Harshad Mehta Story and Rocket Boys.
Raghvendra Rai and Sameer Rai are the company promoters.
Financials: Identical Brains Studios IPO
Particulars/ Rs. Lacs
6m FY25
2024
2023
2022
Revenue from operations
1,139.49
2,008.08
804.29
389.29
Restated Profit
240.54
534.65
161.28
51.01
Equity Share Capital
1,033.20
688.8
1
1
Net worth
1,436.08
1,203.62
288.51
127.23
Net Asset Value
13.9
11.65
2.79
1.23
Total borrowings
17.09
19.04
–
–
Post issue Share Capital
1,403
FV
10.0
IPO price
54.0
EPS Fy24
3.8
PE Fy24
14.2
EPS Fy25 (annualized)
3.4
PE Fy25 (annualized)
15.7
Market cap in Lacs
7,576
Market cap / Sales
3.77
Anchor: Identical Brains Studios IPO
Identical Brains Studios IPO: Salient Points
Indian VFX industry grew from USD 107.7 million in 2020 to USD 647.2 million in 2023, achieving a CAGR of 82%.
VFX industry continues to evolve with incorporation of new technologies, making production faster and more efficient.
This is a fresh issue only.
Use of Net proceeds
Renovation of the Andheri office and studio.
Establishment of a DI Colour Grading and Sound Studio.
Setting up a new office at Lucknow.
Upgrading facilities with computers and software.
Incremental working capital / General corporate.
Details of the number of films, web series, TV series, and commercial projects completed by our Company for the previous three years are given below:
Particulars
September 30, 2024
March 31, 2024
March 31, 2023
March 31, 2022
Films
16
21
25
25
Web Series
10
11
22
17
TV Series
–
–
–
4
Songs
1
–
2
2
Commercial Projects
1
–
–
1
Documentary
1
–
–
1
Advertisement
3
12
3
–
Shoot Supervision
1
–
1
–
Total
33
44
53
50
Key operational indicators
Indicator
September 30,2024
March 31,2024
March 31,2023
March 31,2022
No. of clients
30
44
36
33
No. of projects completed
33
44
53
50
Average duration to complete a project (days)
43.39
35.27
18.74
17.84
No. of permanent employees
18
19
18
18
No. of contractual employees
92
124
107
42
Peers:
Compnay
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW %
Identical Brains Studios
54.0
20.08
5.35
26.6%
14.2
3.77
44.42%
Prime Focus Limited
125
3,951
-488
-12.4%
1.1
-0.02%
Digikore Studios
304
44.96
9.54
21.2%
30.4
4.55
22.47%
Phantom Digital Effects
250
89
24.00
255.62
15.4
4.09
16.60%
Basilic Fly Studio
368
100
36.00
18.3
31
10.1
29.84%
Company operates in the constantly evolving entertainment industry, which is subject to rapidly changing consumer behaviour and tastes.
Their business thrives on a combination of direct contracts with film and content producers and subcontracting arrangements.
The company has won two Filmfare OTT Awards for Best Visual Effects for Scam 1992: The Harshad Mehta Story (2020) and Rocket Boys (2022) and one Dadasaheb Phalke Awards for Phone Bhoot (2022) for Best Visual Effect.
Their work includes upcoming projects like Tanaav 2, Criminal Justice 4 etc.
Projects done by them include Rocket Boys,, Khel Khel Mein, Murder in Mahim,The Crew, Article, 370, Mission Raniganj, Dream Girl 2, Adipurush, Indian 2, Kutch Express, Ek Villian Returns, Night Manager, Criminal Justice 3, Phone Bhoot, Satyamev Jayate 2, Angrezi Medium, Bad Cop, Scam 1992: The Harshad Mehta Story, Good Newwz, Panipat etc.
PE FY25 (annualized) 15.7x ; PE Fy24: 14.2x
Zero debt company
Revenues and profit have shown uptick.
I intend to apply in Identical Brains Studios IPO. This is a small issue and company is smaller compared to peers but valuations look reasonable compared to peers.
GMP as reported on social media is around Rs. 40 (70%).
Lead Manager Indorient Financial Services Ltd Services Private Limited has a fair track record based on past listings.
Market Maker Alacrity Securities Ltd too has a fair record if we go by past listings.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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.
