Identical Brains Studios Limited is preparing for its initial public offering (IPO) scheduled from December 18 to December 20, 2024, aiming to raise approximately ₹20 crores. The company, based in Mumbai, specializes in providing high-quality visual effects (VFX) and computer-generated imagery (CGI) for films, web series, and commercials. The IPO will consist of a fresh issuance of 3,694,000 equity shares with a face value of ₹10 each, priced between ₹51 and ₹54 per share. Proceeds from the offering will be utilized for expanding operations, including establishing new facilities and acquiring advanced equipment.
₹30
₹54
₹95
Expert Opinions
Market sentiment for the Identical Brains Studios IPO is generally positive, driven by the growing demand for high-quality visual effects in the entertainment industry. Company strengths include a robust portfolio of projects, including collaborations with major platforms like Disney Hotstar and Amazon, and a significant revenue increase from ₹8.04 crores in FY23 to ₹20.08 crores in FY24, reflecting its operational efficiency. However, risks and challenges involve intense competition in the VFX sector and potential reliance on a few key clients that could impact revenue stability.
The valuation analysis sets the IPO price between ₹51 and ₹54 per share, which appears attractive given its strong financial metrics, including a return on net worth of 44.42%. From a long-term investment perspective, Identical Brains Studios is well-positioned to capitalize on the expanding VFX market, making it an appealing option for investors seeking exposure to this dynamic sector.
Investor Considerations
Investors considering the Identical Brains Studios IPO should evaluate several key factors. Company performance and fundamentals are promising, with a strong portfolio that includes high-profile projects like “Criminal Justice 4” and “Scam 1992,” indicating its capability in the competitive VFX market. The sector outlook is positive, as the demand for visual effects in films and digital content continues to grow, driven by increasing consumption of streaming services.
The IPO valuation is set between ₹51 and ₹54 per share, aiming to raise approximately ₹20 crores through a fresh issuance of shares, which appears reasonable given the company’s growth trajectory. Growth prospects are bolstered by plans to enhance operational capabilities and establish new facilities, including a color grading studio. However, risk factors include competition from established players and potential reliance on a limited number of clients. A long-term investment horizon is advisable, as Identical Brains Studios is well-positioned to benefit from the expanding VFX landscape in India.
| Date | GMP | Trend |
|---|---|---|
| 25 Dec 2024 11.13 | ₹30 | Up |
| 24 Dec 2024 10.54 | Down | |
| 23 Dec 2024 11.51 | ₹48.6 | --- |
| 22 Dec 2024 12.06 | ₹48.6 | --- |
| 21 Dec 2024 12.02 | ₹48.6 | Up |
| 20 Dec 2024 10.45 | ₹40 | --- |
| 19 Dec 2024 12.35 | ₹40 | --- |
| 18 Dec 2024 11.54 | ₹40 | --- |
| 17 Dec 2024 12.18 | ₹40 | Up |
| 16 Dec 2024 18.06 | ₹30 | Up |
| 15 Dec 2024 13.25 | ₹00 | --- |
| 14 Dec 2024 16.35 | ₹00 | --- |
| 13 Dec 2024 11.23 | ₹00 | --- |
| 12 Dec 2024 12.43 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Identical Brains Studios’ listing performance. While the GMP of ₹30 predicted a premium of 55.56% over the issue price, the stock delivered a higher gain of 75.93%. With a prediction error of 13.10%, the GMP correctly predicted the positive listing direction but underestimated the magnitude of gains, demonstrating partial reliability as a directional indicator in this case.
Identical Brains Studios IPO Current GMP is ₹30.
Identical Brains Studios IPO Expected Returns is 55.56%.
Identical Brains Studios IPO estimated listing price is ₹84.