Recode Studios

Book Building issueSMEBSE₹44.59 Cr issue
+34.87%
Listing gain over issue price
Price band
₹150 – ₹158
Issue size
₹44.59 Cr
1 lot at cut-off
₹1,26,400
Lot size
800shares
Open
05 May 2026
Close
07 May 2026
Allotment
08 May 2026
Listing
12 May 2026

Listing performance

Issue price
₹158
Listed at
₹213.10
Listing-day close
₹223.75
Latest price
₹195.95
Listing gain
+34.87%
Return since listing
+24.02%

Scheduled dates

Tentative timetable — a past date is not confirmation the step completed

  1. Open
    05 May 2026
  2. Close
    07 May 2026
  3. Allotment
    08 May 2026
  4. Refund
    11 May 2026
  5. Demat credit
    11 May 2026
  6. Listing
    12 May 2026

Grey market premium

Unofficial and indicative — not a forecast

₹43

3 observations recorded — too few to plot a trend.

Day-wise premium · 3 observations
DateGMP%SaudaEst. listingGain / lot
12 May 2026₹43+27.22%₹26,100₹201₹34,400
11 May 2026₹43+27.22%₹26,100₹201₹34,400
10 May 2026₹50+31.65%₹30,400₹208₹40,000

Gain per lot assumes the premium holds to listing and that the application is allotted — allotment in an oversubscribed issue is a lottery, so it is indicative, not expected. Sauda is the rate paid for a submitted application itself.

Issue details

IPO date
05 May 2026 – 07 May 2026
Listing date
12 May 2026
Face value
₹10 per share
Price band
₹150 – ₹158
Issue price
₹158 per share
Lot size
800 shares
Issue type
Book Building issue
Listing at
BSE
Total issue size
₹44.59 Cr
Market cap at offer price
₹168 Cr
Promoter holding
88.93% → 65.01% pre-issue → post-issue
ISIN
INE2B6701015
Registrar
Mudra RTA Ventures Private Limited
Lead managers
Seren Capital Pvt.Ltd.
Registered office
R-89, Phase V, Focal Point, Punjab

Reservation and application size

How the issue is split between investor categories, and what each may bid

Investor categoryShares% of net% of total
Anchor investor · within QIB8,01,600——
Market maker 1,44,800——

Application size

Minimum 800 shares per lot, in multiples, at ₹158

ApplicationLotsSharesAmount
Retail (min)1800₹1,26,400
S-HNI (min)21,600₹2,52,800
S-HNI (max)75,600₹8,84,800
B-HNI (min)86,400₹10,11,200

Category limits

CategoryBid sizeCut-off
Retail (RII)Up to ₹2 lakhYes
Small HNI (sNII)₹2 lakh – ₹10 lakhNo
Big HNI (bNII)Above ₹10 lakhNo
EmployeeUp to ₹5 lakhYes

Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.

Anchor investors

Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.

Shares allocated
8,01,600
Anchor portion
₹12.67 Cr
at ₹158 per share

Valuation and performance

Valuation at offer price

₹158 per share

MetricPre-issuePost-issue
EPS (₹)4.0611.35
P/E (×)38.9213.92
Price to book (×)14.66—
Market cap—₹168 Cr

Key performance indicators

Latest reported period

Return on net worth
37.64%
ROCE
34.47%
Debt / equity
0.86
PAT margin
6.91%
EBITDA margin
12.82%
NAV per share
₹10.78
Price to book
14.66

Single period as reported. Year-on-year movement is in the financials table below, where every period is published.

About Recode Studios

Recode Studios Limited, incorporated in June 2021 and converted to a public company in September 2025, operates in the beauty, cosmetics and personal care segment in India. The company does not own manufacturing facilities and outsources all production to third-party contract manufacturers. It sells products under the 'Recode' brand through multiple channels including its own website and mobile application, third-party e-commerce platforms (Amazon, Flipkart, Myntra), franchisee-operated retail stores, and B2B distribution to institutional customers. The company is headquartered in Ludhiana, Punjab. Its revenue has grown from ₹1,966.16 lakhs in FY 2022-23 to ₹5,552.30 lakhs in the nine-month period ended December 2025. The company's product portfolio spans face make-up, eye make-up, lip make-up, face and body care, and accessories.

https://www.shop.recodestudios.com/ ↗

Company Analysis

from RHP

Recode Studios Limited is a direct-to-consumer beauty and personal care company that designs, markets and distributes cosmetics products primarily through online channels, franchise-operated stores and B2B distribution in India.

Recode Studios Limited, incorporated in June 2021 and converted to a public company in September 2025, operates in the beauty, cosmetics and personal care segment in India. The company does not own manufacturing facilities and outsources all production to third-party contract manufacturers. It sells products under the 'Recode' brand through multiple channels including its own website and mobile application, third-party e-commerce platforms (Amazon, Flipkart, Myntra), franchisee-operated retail stores, and B2B distribution to institutional customers. The company is headquartered in Ludhiana, Punjab. Its revenue has grown from ₹1,966.16 lakhs in FY 2022-23 to ₹5,552.30 lakhs in the nine-month period ended December 2025. The company's product portfolio spans face make-up, eye make-up, lip make-up, face and body care, and accessories.

Beauty and Personal CareCosmeticsDirect-to-Consumer (D2C) Retail

Objects of the Issue

  • Setting up a new warehouse facility in Ludhiana
    ₹574.20 lakhs p.42
  • Marketing and advertisement expenses
    ₹540.90 lakhs p.43
  • General corporate purposes
  • Funding of Capital expenditure towards setup of a new Warehouse Facility at Ludhiana, Punjab
    ₹574.20 lakhs p.44
  • Marketing and Advertisement expenses towards enhancing the awareness and visibility of our brand
    ₹540.90 lakhs p.96
  • Utilization towards Working Capital Requirements
    ₹1,950.00 lakhs p.47
  • General Corporate Purposes
    p.96
  • Funding of Capital expenditure towards setup of a new Warehouse Facility
    ₹574.20 lakhs p.107
  • Marketing and Advertisement expenses toward enhancing the awareness and visibility of our brand
    ₹540.90 lakhs p.101
  • Utilization towards working capital requirements
    ₹1,600.00 lakhs in FY 2026-27 and ₹350.00 lakhs in FY 2027-28 p.103
  • General corporate purposes
    [●] p.105

Issue Structure

Total Issue
Up to 28,22,400 Equity Shares aggregating to ₹[●] Lakhs
Fresh Issue
Up to 25,03,200 Equity Shares aggregating to ₹ [●] Lakhs
Offer for Sale
Up to 3,19,200 Equity Shares aggregating to ₹ [●] Lakhs by Promoter Selling Shareholders (Rahul Sachdeva, Karan Bansal and Preeti Trehan)
Price Band
Price Band to be decided and advertised at least two working days prior to Bid/Offer Opening Date
Lot Size
[●] equity shares and in multiples of [●] equity shares
Face Value
₹10 per Equity Share

Business Model

The company earns revenue through three primary channels: (1) online sales via its own website and mobile application as well as third-party e-commerce platforms, which contributed 44.75% of net sales of products in the April-December 2025 period; (2) franchisee-owned franchisee-operated (FOFO) retail stores, which contributed 23.90% in the same period; (3) B2B sales to institutional customers, retailers, makeup artists and influencers, which contributed 30.43% in April-December 2025. The company outsources all manufacturing to third-party manufacturers and does not own or operate any manufacturing facilities.

Business Segments

Includes foundations, primers, concealers and related face cosmetics products
Eye cosmetics products
Lip cosmetics products
Skincare and body care products
Includes brushes, sponges and similar tools
Includes foundation, compact, concealer, primer, contour, blush, highlighter, and setting/grip sprays
Includes eyeliner, mascara, kajal, eyeshadow, eyebrow pencils, and glitter pigments
Includes lipsticks, lip gloss, lip crayons, lip oil, and lip liners
Includes face wash, cleanser, toner, serum, moisturizer, face gel, sunscreen, scrub, masks, body lotion, shower gel, hand cream, and body oil
Includes makeup brushes, sponges, applicators, and cosmetic tools
Geographic revenue segment including Jammu and Kashmir, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Uttar Pradesh and Ladakh
Geographic revenue segment including Rajasthan, Gujarat, Dadra and Nagar Haveli, Daman and Diu, Maharashtra, and Goa
Geographic revenue segment including Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Bihar, and Odisha
Geographic revenue segment including Karnataka, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana, and Andhra Pradesh
Geographic revenue segment including Madhya Pradesh and Chhattisgarh
Cosmetic products for face make-up
Cosmetic products for eye make-up
Cosmetic products for lip make-up
Products for face and body care
Cosmetic accessories and related products
Franchise fees
Sale of Packing Material and Marketing Support Services
Face makeup products including foundations and related cosmetics
Eye makeup products and cosmetics
Lip makeup and lip care products
Skincare and body care products
Beauty accessories and related items
The company operates in a single segment - Beauty Products, offering a diversified portfolio across multiple categories

SWOT Analysis

Strengths
  • • Experienced management team with deep industry knowledge in beauty and personal care sector(p.48)
  • • Growing revenue and profitability trajectory with demonstrated financial performance(p.61)
  • • Significant expansion in working capital base supporting growth(p.47)
  • • Featured on Shark Tank India Season 2 and recognized for brand excellence(p.166)
  • • Strong revenue growth trajectory with 35 Crores in FY 2023-24(p.166)
  • • Award recognition for digital marketing excellence(p.166)
  • • Direct-to-consumer retail expansion with branded stores(p.166)
  • • Established franchise model for market expansion(p.166)
  • • Profitability and positive cash generation from operations(p.196)
  • • Omnichannel distribution model with integrated offline and online presence(p.248)
  • • Diversified product portfolio across multiple categories and price points(p.248)
  • • Strong revenue growth and improved profitability trajectory(p.257)
  • • Significant improvement in EBITDA margins and operating profitability(p.263)
  • • Strong financial position with improving debt-to-equity ratio(p.264)
  • • Efficient inventory management with reduced inventory holding days(p.265)
  • • Strong return on equity and return on capital employed metrics(p.249)
Weaknesses
  • • High employee attrition rate impacting operational continuity(p.50)
  • • Significant working capital intensity with growing current assets(p.47)
  • • Debt obligations with personal guarantees from promoters(p.51)
  • • Inadequate insurance coverage for key operational risks(p.49)
  • • Related party transactions without assurance of arm's length pricing(p.45)
  • • Potential conflicts of interest from promoters' involvement in similar business activities(p.46)
  • • Significant inventory concentration and working capital requirements(p.193)
  • • High reliance on trade receivables creating credit risk exposure(p.193)
  • • Dependence on unsecured borrowings from financial institutions(p.209)
  • • Limited number of geographically dispersed retail locations(p.166)
  • • Short operational history with limited track record(p.165)
  • • High current ratio and liquidity management challenges(p.193)
  • • Dependence on few major customers without long-term agreements(p.266)
  • • History of delays in payment of statutory dues(p.276)
  • • Significant outstanding income tax demands against promoter(p.271)
  • • Multiple trademark applications subject to objections and oppositions(p.280)
  • • Significant management changes and executive departures post-reporting period(p.267)
Opportunities
  • • Strategic warehouse expansion to improve supply chain efficiency and market reach(p.44)
  • • Growth through enhanced marketing and brand visibility initiatives(p.96)
  • • Working capital support for scaling operations and fulfilling growing demand(p.47)
  • • Expansion of distribution channels and product offerings in growing beauty and personal care segment(p.46)
  • • Expand direct-to-consumer retail presence through franchising(p.165)
  • • Develop health and nutrition product portfolio(p.165)
  • • Build beauty and wellness training infrastructure(p.166)
  • • Leverage social media and digital marketing capabilities(p.166)
  • • Expand into international markets through export(p.165)
  • • Expansion through multiple e-commerce platforms and digital channels(p.248)
  • • Scaling franchise operations to expand geographic reach(p.248)
  • • Growing beauty and personal care market in India(p.257)
  • • Potential for improved margins through operational efficiency and scale(p.263)
  • • Expansion of warehouse operations to support business growth(p.221)
  • • Opportunity to enhance brand visibility through marketing investments(p.265)
Threats
  • • Rapid changes in consumer preferences and industry trends requiring continuous innovation(p.44)
  • • High exposure to foreign currency fluctuations impacting import costs(p.47)
  • • Dependence on third-party manufacturers creating supply chain vulnerability(p.97)
  • • Regulatory compliance risks in digital marketing and e-commerce operations(p.45)
  • • Vulnerability to economic slowdown affecting consumer discretionary spending(p.54)
  • • Geopolitical disruptions and supply chain constraints affecting logistics and availability(p.54)
  • • Payment collection risks from cash-on-delivery and third-party payment gateways(p.45)
  • • Capital project execution risks for proposed warehouse facility(p.44)
  • • Intense competition in beauty and cosmetics sector(p.162)
  • • Regulatory changes in cosmetics and pharmaceutical classifications(p.159)
  • • Dependence on supplier relationships and supply chain vulnerabilities(p.193)
  • • Customer concentration risk in distribution channels(p.216)
  • • Volatility in input costs and foreign exchange fluctuations(p.219)
  • • Regulatory compliance burden under multiple labour and employment laws(p.160)
  • • Intense competition in the beauty and personal care sector(p.266)
  • • Dependence on recurring orders from customers without formal commitments(p.266)
  • • Regulatory and compliance risks including tax and statutory obligations(p.276)
  • • Foreign exchange fluctuation risks(p.242)
  • • Customer concentration risk in e-commerce channels(p.258)

Promoters

NameRolePre-IssuePost-Issue
Dheeraj BansalPromoter——
Rahul SachdevaPromoter——
Shelly BansalPromoter——
Shalini TrehanPromoter——
Preeti TrehanPromoter/Promoter Selling Shareholder——
Karan BansalPromoter/Promoter Selling Shareholder——
Dheeraj BansalPromoter & Chairman and Managing Director9.13%—
Rahul SachdevaPromoter & CEO and Director (subsequently resigned as Whole-time Director and appointed as Chief Operating Officer)10.97%—
Shelly BansalPromoter & Whole-Time Director6.72%—
Preeti TrehanPromoter Selling Shareholder15.85%—
Shalini TrehanPromoter & Non-Executive Director15.86%—
Karan BansalPromoter Selling Shareholder & Whole Time Director5.95%—
Rahul SachdevaPromoter——
Shelly BansalPromoter——
Preeti TrehanPromoter——
Shalini TrehanPromoter——
Dheeraj BansalPromoter/Chairman and Managing Director9.13%—
Rahul SachdevaPromoter/Chief Operating Officer10.97%—
Shelly BansalPromoter/Whole Time Director6.72%—
Preeti TrehanPromoter15.85%—
Shalini TrehanPromoter/Non-Executive Director15.86%—
Karan BansalPromoter/CEO & Whole Time Director5.95%—
Dheeraj BansalPromoter/Chairman and Managing Director——
Karan BansalPromoter/Whole Time Director——
Rahul SachdevaPromoter——
Preeti TrehanPromoter1.31%—
Rahul SachdevaPromoter——
Karan BansalPromoter——
Preeti TrehanPromoter——
Rahul SachdevaPromoter Selling Shareholder——
Karan BansalPromoter Selling Shareholder——
Preeti TrehanPromoter Selling Shareholder——

Leadership

Dheeraj Bansal · Managing Director
Narinder Singh · Chief Financial Officer
Mukta Ahuja · Company Secretary and Compliance Officer

Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.

Disclaimer. Figures are compiled from the issuer's offer document and exchange-published bidding data. Subscription changes until the issue closes, and the final basis of allotment is published by the registrar. Grey Market Premium is unofficial, indicative data from unregulated grey-market dealers — it is not published by NSE, BSE, SEBI or the issuer, and is not a forecast of the listing price. Nothing here is investment advice or a recommendation; read the offer document and consult a SEBI-registered adviser before applying.