Identical Brains Studios eyes INR 20 crore IPO via NSE Emerge

Identical Brains Studios Limited (IBS), a Mumbai-based visual effects (VFX) company, has secured in-principle approval from the NSE Emerge exchange for its Initial Public Offering (IPO). The company aims to raise approximately Rs. 20 crores through the offer, which includes the issuance of 36,94,000 equity shares with a face value of Rs. 10 each.

The company had filed the filed the Draft Red Herring Prospectus (DRHP) with NSE Emerge in August 2024. IBS is now in the process of updating its information with the Registrar of Companies (RoC) and NSE Emerge, with plans to list on the exchange shortly.

Socradamus Capital serves as the sole book running lead manager to the issue, and Bigshare Services is the registrar.

Founded in 2019 by first-generation entrepreneur Raghvendra Rai, IBS’ portfolio includes collaborations on major Bollywood films, web series, and TV commercials. Some of its projects include Rocket Boys, Criminal Justice 3, Indian 2, Dream Girl 2, Scam 1992: The Harshad Mehta Story, and Angrezi Medium. As a Trusted Partner Network (TPN)-audited VFX studio, IBS provides has also secured approvals for projects with platforms like Disney Hotstar and Amazona and has also worked on ad campaigns for companies like Hindustan Unilever’s Glow and Lovely.

The proceeds from the IPO will support the company's expansion and modernisation plans. IBS intends to utilise the capital to renovate its existing office and studio in Andheri, Mumbai, in addition to establishing a Colour Grading Digital Intermediate (DI) and Sound Studio at a new branch the city. It also plans to set up a new branch office in Lucknow and invest in computers, storage systems, and software to bolster existing facilities.

IBS reported INR 20.08 crore in revenue from operations in FY24, a significant jump from INR 8.04 crore from the previous fiscal. Its profit after tax (PAT) has also grown over threefold, rising to Rs. 5.34 crore in FY24 from Rs. 1.61 crore in FY23.

Rai attributes the company’s success to its proprietary workflows and technologies, which enable its team of creative professionals to deliver advanced VFX solutions. "Our mission is to push the boundaries of visual storytelling. This IPO will enable us to expand our capabilities and reach new heights," he said.

The IPO comes at a time when the VFX industry is experiencing rapid technological advancements and increasing demand for high-quality visual effects. According to a Dun & Bradstreet report, the sector grew from $107.7 million in 2020 to $647.2 million in 2023, registering a compound annual growth rate (CAGR) of 81.8%. Projections suggest the market will reach $1,823 million by 2030.