Basilic Fly Studio IPO

Basilic Fly Studio IPO

Basilic Fly Studio Limited is coming up with an IPO worth approximately INR 66 crores. The offer consists of both fresh issue and offer for sale. The company is issuing 62,40,000 fresh equity shares worth INR 60.53 crores. The existing shareholders are selling 6,00,000 shares worth INR 5.82 crores. 

Basilic Fly Studio IPO – Important Details

Basilic Fly Studio IPO Date 1st September to 5th September 2023
Basilic Fly Studio IPO Listing Date 13th September 2023
Basilic Fly Studio IPO Price INR 92 to 97 per share
Basilic Fly Studio IPO Lot Size 1200 Shares
Basilic Fly Studio IPO Total Issue Size Approx INR 66.35 crores
Basilic Fly Studio IPO Basis of Allotment 8th September 2023
Basilic Fly Studio IPO Initiation of Refunds 11th September 2023
Basilic Fly Studio IPO Credit of Shares to Demat 12th September 2023
Basilic Fly Studio IPO Issue Type Book Built Issue IPO
Basilic Fly Studio IPO Listing At NSE SME

Basilic Fly Studio IPO – Company Profile

Basilic Fly Studio holds proficiency in the VFX industry and has delivered high-quality VFX solutions for movies, TV, net series, and commercials. The company has established a strong presence in the industry by forging direct partnerships with diverse production houses, as well as collaborating with prominent VFX companies and studios through subcontracting arrangements. Many VFX companies and studios choose to outsource certain aspects to specialized teams that are equipped with expertise, infrastructure, and technology to manage large-scale VFX projects. 

Basilic Fly Studio has been awarded Company of the Year (Creative Media Solution 2022) at the India Icons Awards, Most Prominent Company 2023 (Animation Category) at Nationwide Awards, and awarded Excellence in VFX and Post Production at the Times Business Awards 2023, It is a testimony for the company’s continuous and effective efforts put in for business growth and client satisfaction.

Basilic Fly Studio IPO Fundamental Analysis

Revenue:

The revenue of Basilic Fly Studio has shown a substantial increase over the years. It grew from ₹1,727.07 lakhs in March 2021 to ₹7,022.73 lakhs in March 2023, indicating a strong revenue growth trajectory.

Equity:

The equity has significantly increased from ₹297.52 lakhs in March 2021 to ₹3,020.97 lakhs in March 2023, which is a positive sign of financial growth and capital infusion.

Expenses:

Expenses have also increased but at a lesser rate compared to revenue, from ₹1,678.31 lakhs in March 2021 to ₹3,508.48 lakhs in March 2023.

Profit and Loss After Tax:

The profit after tax has seen a remarkable increase from ₹33.65 lakhs in March 2021 to ₹2,644.06 lakhs in March 2023, indicating strong profitability.

RoNW (%):

The Return on Net Worth has significantly increased from 11.31% in March 2021 to 87.59% in March 2023, showcasing efficient utilization of equity.

Diluted EPS (₹):

The Earnings Per Share has increased from ₹0.20 in March 2021 to ₹15.55 in March 2023, which is a positive indicator for potential investors.

NAV per Equity Share (₹):

The NAV per Equity Share data is missing, which is crucial for evaluating the book value per share.

Total Assets (in lakhs):

Total assets have grown from ₹936.46 lakhs in March 2021 to ₹4,881.91 lakhs in March 2023, indicating asset accumulation and potential business expansion.

Total Liabilities (in lakhs):

Total liabilities have increased from ₹638.94 lakhs in March 2021 to ₹1,860.94 lakhs in March 2023, but at a lesser rate compared to assets and equity.

Summary:

The financials show a strong growth trajectory and profitability. However, the absence of NAV per Equity Share and P/E ratio makes a complete evaluation challenging. It’s advisable to consult with a financial advisor, considering individual financial goals and risk tolerance, before making an investment decision in the IPO of Basilic Fly Studio.

Basilic Fly Studio IPO Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 31 March 2023
Revenue (₹ in Lakhs) 1,727.07 2,387.68     7,022.73
Equity (₹ in Lakhs) 297.52 376.90 3,020.97
Expenses (₹ in Lakhs) 1,678.31 2,284.40 3,508.48
Profit and Loss After Tax (₹ in Lakhs) 33.65 79.38 2,644.06
RoNW (%) 11.31%* 22.86% 87.59%
Diluted EPS only (₹) 0.20 0.47 15.55
NAV per Equity Share (₹)
Total Assets (in lakhs) 936.46 1,356.93 4,881.91
Total Liabilities (in lakhs)

 

638.94 980.03 1,860.94

*Standalone figures 

Basilic Fly Studio IPO Peer Comparison

Basilic Fly Studio exhibits a high RoNW at 87.59%, indicating efficient equity utilization. Its EPS stands between Prime Focus and Phantom Digital Effects. However, its NAV per share is lower than Phantom but higher than Prime Focus, indicating a mid-range intrinsic value per share.

Company Profit after tax (₹ in lakhs) Face Value per Equity Share (₹) P/E EPS (₹) RoNW (%) NAV per Equity Share (Basic) (₹)
Basilic Fly Studio Limited 2774.02 10 NA 16.32 87.59% 18.63
Prime Focus Limited  19449.10 1 9.29 8.50 584.87 5.24
Phantom Digital Effects Limited 1619.56 10 9.59 15.97 36.63 37.98

Basilic Fly Studio IPO Objective

The main objective of Basilic Fly Studio’s IPO is to fund INR 45.62 crores for expansion, including two new studios, upgrading existing facilities, and international business expansion through equity investments in subsidiaries, alongside supporting general corporate purposes like IT advancement.

  • Meeting capital expenditure: The company has various expansion plans. The company proposes to set up two new studios in Hyderabad and Salem and also plans to upgrade the existing facility. The company also envisages expanding its business internationally, so it proposes to make equity investments in its subsidiaries. For all this, the company plans to spend INR 45.62 crores. 
  • General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary course of business such as strategic initiatives, including the advancement of information technology, meeting future branch and business expansion, etc.

Basilic Fly Studio IPO Risks And Challenges

Basilic Fly Studio faces risks in adapting to the fast-evolving VFX market and client preferences. With 89% revenue from subcontracting in 22-23, dependency on procuring new orders is a significant risk affecting business sustainability.

  • Failure to upgrade to changing trends: The Company operates in the constantly evolving VFX market, which is subject to rapidly changing clients’ behavior and tastes, and depends on audience acceptance of content for which the Company provides VFX services and the long-term popularity of the brands. 
  • Dependency Risk: A significant portion of the revenue is generated through strategic subcontracting agreements with the entities. The percentage of revenue earned through sub-contracting is almost 89% in the year 22-23. Failure to procure new orders may adversely affect our business, revenues, cash flows, and operation. 

Basilic Fly Studio IPO – Industry & Market Potential

Visual Effects (VFX) is a crucial pillar of modern filmmaking, breathing life into fantastical worlds, epic battles, and breathtaking sequences. This multi-billion-dollar industry operates through a complex interplay of creativity, technology, and collaboration. The VFX industry functions through a collaborative framework involving major production houses and specialized VFX studios. The industry’s workflow, outsourcing practices, and specialization within production houses & studios shape its landscape.

The global visual effects (VFX) market attained a value of USD 9.95 billion in 2022. The market is further expected to grow in the forecast period of 2023-2028 at a CAGR of 10.4% to reach almost USD 18.02 billion by 2028. The global market is being led by North America, majorly being driven by the increasing use of VFX in Hollywood movies.

Most popularly, there are some of the big Hollywood studios outsourcing video editing work to some of the professional companies in cities like Bangalore, Pune, Mumbai, Chennai, etc

Nevertheless, the VFX is not only used in filmmaking but also in corporate presentation, websites, gaming, APP development and other branding materials. It is expected to grow in several areas in the last couple of years & contributes to a huge economic growth.

Basilic Fly Studio IPO – Type of Offer

Basilic Fly Studio’s IPO comprises a Fresh Issue to raise INR 60.53 crores for capital expenditure and an Offer For Sale (OFS) by existing shareholders, including promoters, offering 6,00,000 shares aggregating to INR 5.82 crores.

  •  Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 60.53. This fund will meet the various avenues of capital expenditure the company plans. 
  • Offer For Sale (OFS): Existing shareholders, including promoters, will sell a portion of their stake in the company. The promoters are offering 6,00,000 shares for sale, aggregating to INR 5.82 crores. 

Basilic Fly Studio IPO Offer Size

Basilic Fly Studio IPO’s total offer size is INR 66.35 crores. The existing shareholders will sell their 6,00,000 shares in the offer-for-sale segment. The fresh issue is for approximately INR 60.53 crores. The funds raised are intended to meet the various avenues of capital expenditure planned by the company. 

Basilic Fly Studio IPO Allotment Structure

The IPO allotment structure for Basilic Fly Studio is planned as follows:

  •  Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
  • Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
  • Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

How to apply for a Basilic Fly Studio IPO?

To apply for the Basilic Fly Studio IPO through Alice Blue, you would typically follow these steps:


  Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

  1. Check for IPO Details: Once your account is active, you can check for the Basilic Fly Studio IPO details in the IPO section of the Alice Blue platform.
  2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  3. Submit the Application: Confirm all your details and submit your application.
  4.  You can apply for Basilic Fly Studio IPO at Alice Blue in just a few clicks!

 Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Basilic Fly Studio IPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

  1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
  2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  4. Select the Basilic Fly Studio IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Basilic Fly Studio IPO.
  5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the Basilic Fly Studio IPO:

  • Registrar’s Website: Visit the website of Purva Sharegistry (India) Private Limited, the registrar of the Basilic Fly Studio IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
  •     NSE SME You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME Platform. You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

 Basilic Fly Studio IPO Offer Registrar

The registrar for the Basilic Fly Studio IPO is  Purva Sharegistry (India) Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Purva Sharegistry (India) Private Limited

9 Shiv Shakti Industrial Estate, 

J.R Boricha Marg, Lower Parel (East), 

Mumbai400011, Maharashtra

 Tel. No.: +91-022-4961-4132

Email: [email protected]

Website: https://www.purvashare.com/

Basilic Fly Studio IPO FAQs

1.      What is the allotment date of the Basilic Fly Studio IPO?

 The allotment date is 8th September 2023.

2.      What is the price band of Basilic Fly Studio IPO?

           The price band per share is INR 92-97.

3.      What is the size of the Basilic Fly Studio IPO? 

Basilic Fly Studio Limited is coming up with an IPO worth approximately INR 66 crores. The offer consists of both fresh issue and offer for sale. The company is issuing 62,40,000 fresh equity shares worth INR 60.53 crores. The existing shareholders are selling 6,00,000 shares worth INR 5.82 crores. 

4.   What is the listing date of the Basilic Fly Studio IPO?

The listing date of the issue is 13 September 2023

 

 

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