Recode Studios Ltd.
RECODESME
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Overview
Recode Studios Limited is an Indian beauty and personal care (BPC) company that markets products under the 'Recode' brand. The company operates through an omnichannel model, including company-owned and franchisee-operated stores, its own website and mobile app, and third-party e-commerce platforms like Amazon and Nykaa. Its diverse portfolio features over 350 SKUs across makeup, skincare, and beauty accessories. Recode Studios utilizes an asset-light business model, outsourcing all manufacturing to third-party partners in India and internationally, while focusing on branding, procurement, and distribution. The brand gained significant visibility after being featured on Shark Tank India.
Opening Date
May 05, 2026
Closing Date
May 07, 2026
Listing Date
May 12, 2026
IPO Type
SME
IPO Status
Upcoming
Issue Size
—
Fresh Issue
39.55 Cr
Offer for Sale
5.04 Cr
Price Band
₹150 - ₹158
Lot Size
800
IPO Timeline
Financials
Revenue
Profit After Tax (PAT)
IPO Objective
The main objectives of the issue are to utilize the net proceeds from the Fresh Issue for the following purposes:
- •
Funding of capital expenditure amounting to ₹5.74 crores towards setting up a new warehouse facility in Ludhiana, Punjab, to improve inventory management, support expiry-sensitive stock handling, and facilitate efficient order processing across its omnichannel network.
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Allocation of ₹5.41 crores for marketing and advertisement expenses to enhance the awareness and visibility of the 'Recode' brand through digital platforms, social media campaigns, and collaborations.
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Utilization of ₹19.50 crores towards funding the company's working capital requirements to support its expanding operational scale and business activities.
- •
To fund general corporate purposes, with the amount not exceeding 15% of the Gross Proceeds or ₹10 crores, whichever is lower, to support future growth opportunities and operational needs.
Key Performance Indicator
P/E Ratio
—
EPS
—
ROE
68.11%
ROCE
59.85%
RONW
50.8%
Debt to Equity Ratio
—
PAT Margin
15.79%
EBITDA Margin
23.24%
P/B
7.21
SWOT Analysis
Strengths
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Established omnichannel presence with a network of company-owned stores, franchisee stores, and a strong online distribution through its website and major e-commerce platforms.
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Offers a diverse product portfolio with over 350 SKUs across makeup, skincare, body care, and beauty accessories, catering to a wide range of consumer preferences.
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Strong digital reach and customer engagement with a significant following of approximately 457,000 on Instagram, driving brand awareness and online sales.
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Led by an experienced board and management team with significant professional experience in the industry, guiding the company's strategic direction and operations.
Weaknesses
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Complete reliance on third-party manufacturers for all product sourcing and development, which poses risks related to quality control, supply chain disruptions, and pricing volatility.
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Limited physical retail presence in southern and eastern regions of India, potentially missing out on significant market opportunities in these areas.
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A significant portion of revenue is dependent on a limited number of top customers, making the business vulnerable to the loss of any key accounts.
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As a relatively young company incorporated in 2021, it has a shorter operational history compared to established competitors, which might affect investor confidence.
Opportunities
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Expansion of the franchise-led retail network into untapped southern and eastern regions of India to increase market penetration and brand visibility.
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Leveraging the rapidly growing Indian cosmetics market, which is projected to reach USD 27.75 billion by 2034, driven by rising disposable incomes and beauty awareness.
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Capitalizing on the rising demand for natural, herbal, and ayurvedic products, which enhances the company's export potential for 'Made in India' cosmetics.
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Tapping into emerging growth segments such as the male grooming market and expanding into rural and semi-urban areas with affordable product offerings.
Threats
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Intense competition from well-established domestic and international beauty brands, as well as digital-first companies, leading to pricing pressures and the need for continuous innovation.
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Evolving regulatory landscape with stringent rules on product safety, ingredient transparency, and advertising, which could increase compliance costs and operational challenges.
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Volatility in the prices of raw materials and packaging, coupled with inflationary pressures, could adversely affect profit margins if costs cannot be passed on to consumers.
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Adverse economic conditions, geopolitical instability, or pandemics could disrupt global supply chains, increase operating costs, and reduce discretionary consumer spending on beauty products.
Subscription Rate
Frequently Asked Questions about Recode Studios Ltd.
Recode Studios Limited is an Indian beauty and personal care (BPC) company that markets products under the 'Recode' brand. The company operates through an omnichannel model, including company-owned and franchisee-operated stores, its own website and mobile app, and third-party e-commerce platforms like Amazon and Nykaa. Its diverse portfolio features over 350 SKUs across makeup, skincare, and beauty accessories. Recode Studios utilizes an asset-light business model, outsourcing all manufacturing to third-party partners in India and internationally, while focusing on branding, procurement, and distribution. The brand gained significant visibility after being featured on Shark Tank India.
The Recode Studios Ltd. IPO is scheduled to open for subscription on May 05, 2026 and close on May 07, 2026. Investors can apply for shares during this period through eligible platforms.
The price band for the Recode Studios Ltd. IPO is ₹150 to ₹158. Investors can place bids within this range once the issue opens.
The minimum lot size for the Recode Studios Ltd. IPO is 800 shares. The minimum investment amount ₹1,26,400.
The total issue size of the Recode Studios Ltd. IPO is will be disclosed closer to the issue opening. Issue size represents the total value of shares offered to the public.
As per the latest available information, the Recode Studios Ltd. IPO has been subscribed data will be available once the issue opens. Subscription levels can change significantly during the offer period.
The Grey Market Premium (GMP) for the Recode Studios Ltd. IPO is not available as of now. GMP reflects unofficial market sentiment and should not be considered a guarantee of listing performance.
The shares of Recode Studios Ltd. are expected to list on stock exchanges on May 12, 2026, subject to completion of the allotment process and regulatory approvals.
The net proceeds from the Recode Studios Ltd. IPO are proposed to be used for The main objectives of the issue are to utilize the net proceeds from the Fresh Issue for the following purposes:, Funding of capital expenditure amounting to ₹5.74 crores towards setting up a new warehouse facility in Ludhiana, Punjab, to improve inventory management, support expiry-sensitive stock handling, and facilitate efficient order processing across its omnichannel network., Allocation of ₹5.41 crores for marketing and advertisement expenses to enhance the awareness and visibility of the 'Recode' brand through digital platforms, social media campaigns, and collaborations., Utilization of ₹19.50 crores towards funding the company's working capital requirements to support its expanding operational scale and business activities., To fund general corporate purposes, with the amount not exceeding 15% of the Gross Proceeds or ₹10 crores, whichever is lower, to support future growth opportunities and operational needs.
Before applying for the Recode Studios Ltd. IPO, investors generally review the company’s business model, financial performance, valuation, industry outlook, and risk factors mentioned in the offer document.
