IPO Overview
Recode Studios Limited is a beauty and personal care company incorporated on 16 June 2021 in Ludhiana, Punjab. The company operates under the “Recode” brand and focuses on offering makeup, skincare, body care and beauty accessories across multiple price points. Its portfolio includes more than 350 SKUs covering face, eye and lip products, along with other personal care items, with products largely manufactured through third-party vendors in India.
The IPO is an SME book-built issue of ₹44.59 crore, comprising a fresh issue and a small offer-for-sale component. The IPO opens on 5 May 2026 and closes on 7 May 2026, with listing expected on 12 May 2026 on BSE SME.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 5 May 2026 |
| IPO Close Date | 7 May 2026 |
| Allotment Date | 8 May 2026 (Expected) |
| Credit to Demat | 11 May 2026 |
| Listing Date | 12 May 2026 (Tentative) |
| Price Band | ₹150 – ₹158 per share |
| Face Value | ₹10 per share |
| Lot Size | 800 shares |
| Minimum Investment (Retail) | ₹2,52,800 (2 lots = 1,600 shares) |
| Issue Size | ₹44.59 crore |
| Fresh Issue | 25,03,200 shares (₹39.55 crore) |
| Offer For Sale (OFS) | 3,19,200 shares (₹5.04 crore) |
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | 13,36,800 shares (~50%) |
| Non-Institutional Investors (NII/HNI) | 4,03,200 shares (~15%) |
| Retail Individual Investors (RII) | 9,37,600 shares (~35%) |
| Market Maker | 1,44,800 shares (Reserved) |
OFS / Selling Shareholders
The Offer For Sale comprises 3,19,200 equity shares offered by promoter selling shareholders — Rahul Sachdeva, Karan Bansal, and Preeti Trehan — aggregating to ₹4.79–5.04 crore. The OFS portion is small relative to the total issue, indicating limited promoter exit.
Objects of the Issue (Fund Utilization)
The company proposes to utilise the net IPO proceeds towards the following objectives: funding capital expenditure for setting up a new warehouse facility at Ludhiana, Punjab — ₹5.74 crore; marketing and advertisement expenses to enhance brand awareness and visibility — ₹5.41 crore; and working capital requirements — ₹21 crore. The remaining proceeds will be used for general corporate purposes.
- Capital expenditure — New warehouse facility at Ludhiana, Punjab — ₹5.74 crore
- Marketing & brand building expenses — ₹5.41 crore
- Working capital requirements — ₹21 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Seren Capital Private Limited
- Registrar to the Issue: Mudra RTA Ventures Private Limited
Promoters & Management
The promoters of the company are Dheeraj Bansal, Rahul Sachdeva, Shelly Bansal, Shalini Trehan, Preeti Trehan, and Karan Bansal. The promoter group collectively brings expertise in brand building, distribution, and retail expansion in the beauty and personal care segment.
Registered Office: R-89, Phase V, Focal Point, Ludhiana, Punjab – 141010
Company Details
Incorporated in 2021, Recode Studios is an Indian beauty and personal care company operating under the brand “Recode.” Its business focuses on branding, sourcing, and selling beauty and personal care products across India. The company sells its products through an omnichannel network which includes company-owned stores (COCO), franchise stores (FOFO), third-party e-commerce platforms, and its own website and mobile app. Its product range includes makeup, skincare, body care, and beauty accessories.
Sectors Served:
- Beauty & Personal Care (BPC)
- Cosmetics & Makeup
- Skincare & Body Care
- Beauty Accessories & Tools
Key Products / Categories:
- Face Makeup (foundation, primer, blush, highlighter)
- Eye Makeup (kajal, mascara, eyeshadow)
- Lip Products (lipstick, lip gloss, lip liner)
- Skincare & Body Care Essentials
- Beauty Tools & Accessories
- 350+ SKUs across all categories
Distribution Model:
- COCO Stores (Company-Owned, Company-Operated) — 3 stores
- FOFO Stores (Franchise-Owned, Franchise-Operated) — 21 stores
- Third-party e-commerce platforms
- Own website and mobile application
Operational Footprint:
- As of September 30, 2025, 24 stores are operational across 14 states in India.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹36.93 | ₹0.27 |
| FY25 | ₹47.94 | ₹3.30 |
Key Financial Metrics
- Revenue grew from ₹36.93 crore in FY24 to ₹47.94 crore in FY25 — growth of ~30% YoY. PAT grew from ₹0.27 crore in FY24 to ₹3.30 crore in FY25 — an exceptional turnaround in profitability.
- PAT margin improved sharply from near-zero to ~6.9% in FY25
- Asset-light model with outsourced manufacturing — lower capex intensity
- Current Grey Market Premium (GMP): ₹11 above issue price, implying an estimated listing gain of ~7% above the issue price of ₹158.
Company Strengths
- Operates in the fast-growing beauty and cosmetics segment where branded demand, online penetration, and influencer-led marketing are creating strong opportunities.
- Omnichannel presence — strong combination of offline retail stores, franchise network, and online/e-commerce channels
- Sharp improvement in profitability — PAT grew from ₹0.27 crore to ₹3.30 crore in just one year
- Asset-light business model with third-party manufacturing — minimal capex burden and high scalability
- Rapidly expanding retail footprint — 24 stores across 14 states within just 3–4 years of inception
- Diverse product portfolio of 350+ SKUs at multiple price points, catering to a wide consumer base
Key Risks & Challenges
- Very young company — incorporated only in 2021, with limited operational track record
- Operates in a highly competitive segment and depends on sustained branding spends to maintain visibility and consumer recall.
- Products are largely manufactured through third-party vendors — limited control over quality, pricing, and supply continuity
- Heavy reliance on franchise model (FOFO) for offline expansion — dependent on franchisee performance and compliance
- Marketing and brand-building expenses are a major cost driver — any cut in spends could impact brand visibility and growth
- SME IPO liquidity risk — limited secondary market trading volumes on BSE SME platform
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
