Shares of Basilic Fly Studio, a visual effects (VFX) studio operator, debuted at a robust premium of 179% on the NSE SME platform on Monday. The stock opened at Rs 271, significantly higher than the IPO price of Rs 97, and rallied further 5% to reach an intraday high of Rs 284.55. The company's grey market premium (GMP) rose to Rs 230 over the upper end of the IPO price, implying a listing price of Rs 327 per share.
The Chennai-based VFX studio's IPO was oversubscribed by 286.61 times, with bids for 146.06 crore equity shares against the issue size of 50.96 lakh (5.1 million) shares. The total issue size was Rs 66.35 crore (approx. $8 million) or 68,40,000 shares. The public issue consisted of a fresh issue of 62,40,000 shares aggregating up to Rs 60.53 crore and an offer for sale of 6,000,00 shares totaling up to Rs 5.83 crore.
The IPO opened for subscription on September 1 and ended on September 5. GVR Capital Advisors acted as the lead manager to the issue, while Purva Sharegistry served as the registrar.
Basilic Fly Studio plans to use the funds raised from the IPO to set up new facilities in Hyderabad and Salem and enhance infrastructure at its existing facilities in Chennai and Pune. The company has subsidiaries operating in Canada and UK and has delivered high-quality VFX solutions for several Hollywood films like 'Avengers: Endgame', 'Spider-Man: No Way Home' and 'Top Gun: Maverick', among others.
For the year ended March 2023, Basilic Fly Studio recorded revenues of Rs 78.95 crore and a net profit of Rs 27.74 crore. The global animation and visual effects market, in which the company operates, was estimated at $168 billion in 2021 and is projected to grow to $290 billion by 2024 at a CAGR of 10.94% between 2020 and 2026, indicating potential growth opportunities for the company.
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