Recode Studios IPO
smelistedAbout the company
Recode Studios, a beauty and personal care (BPC) manufacturer in India, develops and sells branded makeup, skincare, and cosmetics products through multiple channels including company-operated (COCO), franchisee-operated (FOFO) and online sales. Their product range features more than 350 different SKUs that fall into five main categories: face makeup; eye makeup; lip makeup; face and body care; and accessory items. Pricing for these products is very accessible by offering prices ranging from ₹99 for body-care items to ₹6,999 for premium accessory items. The company follows an asset-light business model with no in-house manufacturing. A unified multi-channel distribution approach combines online and offline sales channels across one network. In 9MFY26, online (₹24.8 crore) generated 44.75% of total net sales, while FOFO stores (₹13.2 crore) generated 23.90% of total net sales. B2B sales generated 30.43% (₹16.8 crore), and COCO stores accounted for 0.92% (₹0.5 crore) of total net sales. The website and mobile application generated 72.83% of online revenue, while Amazon, Flipkart and Myntra generated 27.17% in 9MFY26. As of RHP date, Recode Studios has 22 retail stores in 12 states in India: 3 COCO stores and 19 FOFO stores. Their first franchise opened in April 2022 in Raipur, Chhattisgarh. Gujarat has the highest concentration of FOFO stores (4), followed by Delhi and Maharashtra (3 each). COCO stores are company owned stores, while FOFO stores are franchisee locations with a minimum 3-year term. The company’s main direct-to-consumer digital platform is its website and mobile app. The website had total engagement metrics totaling an estimated 7,540,000 sessions for FY26 with a 95.79% engagement rate overall. The official Instagram account at the date of this RHP had approximately 457,000 followers. Marketing is done via Meta Ads, Google Ads, influencer collaboration, and digital campaigns. All products are sourced from 11 domestic third-party contract manufacturers as well as from six overseas manufacturing partners. The company has six warehouses in India operating in all zones. Traditionally, revenue generated from the North zone was the largest contributor to overall revenues, however it has decreased from 59.02% of total revenue in FY23 to 33.50% of total revenues during 9MFY26 as the company has expanded to additional geographical regions. The East zone has had the most increased rate of growth, increasing its revenue segment from 5.69% of total revenues in FY23 to 26.59% of total revenues during 9MFY26.
GMP trend (Grey Market Premium by date)
| Date | GMP (₹) | Est. Listing | Change |
|---|---|---|---|
| 07 May | ₹48 | ₹206 | 0 |
| 06 May | ₹48 | ₹206 | +6 |
| 05 May | ₹42 | ₹200 | +2 |
| 04 May | ₹40 | ₹198 | -5 |
| 03 May | ₹45 | ₹203 | 0 |
| 02 May | ₹45 | ₹203 | +5 |
| 01 May | ₹40 | ₹198 | +5 |
| 30 Apr | ₹35 | ₹193 | 0 |
Strengths
- Strong revenue and profit growth in recent years, showing business momentum
- Improving margins and high return ratios (ROE/ROCE) indicate efficient operations
- Operates in a fast-growing beauty and personal care industry
- Wide product portfolio with 350+ SKUs across makeup, skincare, and accessories
- Omnichannel presence including retail stores, franchise outlets, and e-commerce platforms
- Asset-light model helps in scalability and cost efficiency
Risks
- Intense competition from established brands like Nykaa and Mamaearth
- Dependence on third-party manufacturers may impact quality and supply chain
- Limited operating history compared to well-established peers
- Revenue concentration from a few key customers
- SME IPO risks such as low liquidity and high price volatility after listing
- Limited presence in some regions may affect future expansion
Financial performance (₹ Cr)
IPO Roadmap / Timeline
IPO Opens
Completed05 May 2026Bidding starts for all investor categories
IPO Closes
Completed07 May 2026Last day to place your bid
Basis of Allotment
Completed08 May 2026Share allotment finalised
Refund Initiation
Completed11 May 2026Refunds credited for non-allottees
Credit to Demat
Completed11 May 2026Allotted shares credited to demat account
Listing on Exchange
Completed12 May 2026Shares list on NSE / BSE
Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.
Lot size & minimum investment
| Investor Type | Min Lots | Min Shares | Min Amount | Max Lots | Max Amount | Notes |
|---|---|---|---|---|---|---|
| Retail / Individual | 1 | 800 | ₹126,400 | 1 | ₹126,400 | 1 lot only |
| HNI | 2 | 1600 | ₹252,800 | 2 | ₹252,800 | Min 2 lots |
Shares reserved per category & allotment probability
| Category | Reservation | Shares Offered | Amount (₹ Cr) | Shares Bid | Subscribed | Allotment % |
|---|---|---|---|---|---|---|
| QIB | 50% | 1,461,039 | 22.5 | 0 | 0.00x | 100% |
| NII | 15% | 438,312 | 6.75 | 0 | 0.00x | 100% |
| Retail | 35% | 1,022,727 | 15.75 | 0 | 0.00x | 100% |
Retail is a lottery-based allotment when oversubscribed; QIB/NII get pro-rata. Probability ≈ 1 / subscription times (100% if under-subscribed).
