India's beauty and personal care market is booming — and Recode Studios Limited is looking to capitalize on this growth through its SME IPO opening on May 5, 2026. A digitally native beauty brand foun…
India's beauty and personal care market is booming — and Recode Studios Limited is looking to capitalize on this growth through its SME IPO opening on May 5, 2026. A digitally native beauty brand founded in 2021, Recode has grown rapidly to over 350 SKUs and a strong omnichannel presence. Here is everything you need to know.
Recode Studios IPO — Quick Details
ParameterDetailsIPO Open DateMay 5, 2026IPO Close DateMay 7, 2026Allotment DateMay 8, 2026Share CreditMay 11, 2026Listing DateMay 12, 2026Price Band₹150 – ₹158 per shareFace Value₹10 per shareLot Size800 sharesMin. Investment (Retail)₹2,52,800 (1,600 shares / 2 lots)Max. Investment (Retail)₹5,05,600Issue Size₹44.59 CroreFresh Issue₹39.55 CroreOFS₹5.04 CroreListing ExchangeBSE SMELead ManagerSeren Capital Pvt. Ltd.RegistrarMudra RTA Ventures Pvt. Ltd.
About Recode Studios Limited
Recode Studios Limited, incorporated in 2021, has rapidly emerged as a digitally native beauty and personal care brand in India operating under the "Recode" label. The company operates with an asset-light model, focusing on branding, product development, sourcing, and omnichannel marketing. Its product portfolio spans over 350 SKUs across makeup, skincare, body care, and beauty accessories, targeting a wide demographic with varied price points. India.com
The company leverages a hybrid retail strategy, combining company-owned (COCO) and franchisee-operated (FOFO) stores with robust e-commerce presence on platforms like Nykaa, Amazon, Flipkart, and Myntra. India.com
The company is headquartered in Ludhiana, Punjab, and is promoted by Dheeraj Bansal, Rahul Sachdeva, Shelly Bansal, and other co-founders.
Financials at a Glance
The company reported revenue of ₹47.94 crore in FY2025 against ₹36.93 crore in FY2024. Net profit stood at ₹3.30 crore in FY2025 against ₹0.27 crore in FY2024. Univest
This is outstanding growth — revenue jumped 30% and profits surged over 12x in a single year. However, some analysts have flagged that the sharp profit jump could reflect pre-IPO financial optimization rather than pure organic growth. Investors should read the RHP carefully.
The company has a Return on Equity (ROE) of 46.37% — a very strong number indicating efficient use of shareholder capital. India.com
What Will IPO Funds Be Used For?
The proceeds will be used for setting up a new warehouse facility at Ludhiana, Punjab (₹5.74 crore), marketing and advertisement to enhance brand visibility (₹5.41 crore), working capital requirements (₹19.50 crore), and general corporate purposes. HDFC Sky
The heavy allocation toward working capital (₹19.50 crore) reflects the company's need to fund its rapidly growing inventory and omnichannel expansion.
Subscription Allocation
Of the net offer of 26,77,600 shares — 13,36,800 shares are allocated to QIBs (50%), 4,03,200 shares (15.06%) to NIIs, and 9,37,600 shares (35.02%) to retail investors. Chittorgarh
GMP — Grey Market Premium
The current GMP of Recode Studios IPO is ₹35, indicating a moderate listing gain expectation of approximately 22%, suggesting healthy investor interest. The Tribune
As of May 1, 2026, the GMP is ₹40 (25.32%), suggesting a potential listing price of ₹198. GMP has been volatile in the ₹11–₹40 range — track the latest on our SMEGMP tracker. India.com
Key Strengths
- Fast-Growing Beauty Brand — Founded in 2021, Recode has scaled to 350+ SKUs and strong omnichannel presence in just 4 years — a remarkable achievement.
- Asset-Light Model — Recode does not manufacture products in-house. It outsources manufacturing and focuses on branding, distribution, and marketing — keeping capital requirements low.
- Omnichannel Presence — Strong presence on Nykaa, Amazon, Flipkart, Myntra + COCO and FOFO offline stores gives the brand multiple revenue channels.
- Strong ROE of 46.37% — One of the highest ROEs in the SME IPO space, indicating excellent capital efficiency.
- India's Beauty Market Tailwind — India's beauty and personal care market is expected to reach $20+ billion by 2030, providing a massive addressable market for Recode.
Risks to Consider
- Third-Party Manufacturing Dependency — The company is fully dependent on third-party manufacturers. Any supply disruption or quality issue could impact brand reputation significantly.
- Brand Concentration — All revenues come from a single brand "Recode." Brand damage or competition from larger players could impact growth.
- Trademark Issues — Some unresolved trademark-related matters are flagged in the RHP — investors should review these carefully.
- Aggressive Pricing — Some analysts noted the issue appears aggressively priced, with bumper profits from FY25 onwards appearing to be window-dressing to fetch fancy pricing. Investors should exercise caution. Chittorgarh
- Young Company — Incorporated in 2021, the company has a very short track record of just 4 years.
Verdict
Recode Studios is a high-growth, asset-light beauty brand with impressive revenue trajectory and strong GMP. However, the short track record, third-party manufacturing dependence, and aggressive valuation call for caution.
Verdict: Subscribe Cautiously — Suitable for Aggressive/Risk-Tolerant Investors. Monitor GMP Closely.
Key Dates: Open: May 5 | Close: May 7 | Allotment: May 8 | Listing BSE SME: May 12, 2026
Disclaimer: For informational purposes only. Not investment advice. Consult a SEBI-registered financial advisor
