Recode Studios IPO Lists at 35% Premium on BSE SME, Hits Upper Circuit on Debut
- 12th May 2026
- 02:00 PM
- 3 min read
Summary
Recode Studios shares debuted on the BSE SME platform on 12 May 2026 at ₹213.10, a 34.87% premium over the issue price of ₹158. The stock rose further to hit the upper circuit at ₹223.75, taking listing-day gains to 41.61%. The ₹45 crore IPO was subscribed 234.64 times overall during its 5-7 May subscription window.Mumbai | 12 May 2026
Recode Studios, a beauty and personal care company, listed on the BSE SME platform on Tuesday at ₹213.10 per share, a 34.87% premium over its issue price of ₹158. The stock rose further after listing to hit the upper circuit at ₹223.75, extending gains to 41.61% for IPO investors.
The listing came on a weak day for broader markets, with the Sensex and Nifty 50 both down nearly 1% in early trading.
How Was the Recode Studios IPO Subscribed?
The ₹45 crore IPO was open for subscription between 5 May and 7 May 2026 and received bids 234.64 times the issue size overall.
Category-wise subscription:
| Category | Subscription |
| Qualified Institutional Buyers (ex-anchor) | 137.99 times |
| Non-Institutional Investors | 404.76 times |
| Retail Investors | 216.65 times |
| Overall | 234.64 times |
What Is the Structure of the IPO?
The IPO comprised a fresh issue of shares worth ₹39 crore and an offer for sale of 3,19,200 shares with a face value of ₹10 each. Proceeds from the offer for sale went to the selling shareholders.
How Will Recode Studios Use the IPO Proceeds?
Of the funds raised through the fresh issue, the company has allocated:
- ₹19.50 crore for working capital requirements
- ₹5.74 crore for setting up a new warehouse facility in Ludhiana, Punjab
- ₹5.41 crore for marketing and advertising
- The remaining amount for general corporate purposes
What Does Recode Studios Do?
Recode Studios was incorporated in 2021 and operates a beauty and personal care business under the Recode brand. The company sells through an omnichannel network that includes 24 stores across 14 states, of which three are company-owned and the rest franchised.
Its product portfolio covers makeup, skincare, body care, and beauty accessories, with over 350 SKUs across different categories and price points, according to the company’s IPO draft. Products are manufactured by third-party vendors. The company also distributes through third-party e-commerce platforms, its own website, and its mobile app.
How Has Recode Studios Performed Financially?
The company reported a net profit of ₹69 lakh in FY23, which declined to ₹27 lakh in FY24, before rising sharply to ₹3.30 crore in FY25. Total income grew at a compound annual growth rate (CAGR) of over 46% during this period to reach ₹47.94 crore.
For the nine months ended December 2025 (9MFY26), the company reported a net profit of ₹9.06 crore and total income of ₹57.45 crore, already surpassing full-year FY25 numbers.
As of 31 December 2025, the company had debt of ₹3.43 crore and reserves and surplus of ₹9.70 crore.
Outlook
The stock hit the upper circuit on listing day, restricting further price discovery for the session. Trading direction in subsequent sessions will reflect post-listing demand on the BSE SME platform.
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