Basilic Fly Studio IPO: All you need to know

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Basilic Fly Studio  IPO

The initial public offering (IPO) for Basilic Fly Studio Limited is set to open for subscription from 1 September 2023 to 5 September 2023. The set IPO price range is ₹92 and ₹97 with a lot size of 1200 shares with a minimum investment of ₹116,400.

The listing date of the IPO is 13 September 2023. The total IPO size is Rs.66.35 Cr crore which includes a Rs. 60.53 Crore fresh issue and Rs. 5.82 crore Offer-for-Sale (OFS).

Basilic Fly Studio IPO: Business Overview

Established in 2012, Basilic Fly Studio delivers quality, budget-friendly visual effects for movies, TV shows, web series, and advertisements. The company has grown to become a major VFX player in India and has also set up offices in international cities like London and Vancouver.

The company operates based on several key principles:

a. Providing a complete set of visual effects services, from oversight to special effects, creature design, backgrounds, layering, camera tracking, touch-ups, and frame-by-frame editing.

b. Utilizing India's skilled workforce and cost benefits, while also having local contacts for clients in the US and the UK.

c. Employing a seasoned, talented team that uses the newest technology to make eye-catching visuals.

d. Capable of managing projects of any size quickly and with the ability to scale up as needed.

e. Leading the field in visual effects through unparalleled creativity, technical skill, and a constant drive for quality.

Promoters And Management:

Mr. Balakrishnan, 37, serves as the Company's Promoter and Managing Director. With a Master's in Electronic Media from Anna University, he joined the board in 2016. Boasting over 13 years in the industry, he has collaborated with award-winning professionals and is currently the main force behind the company's growth. His skills are vital to the company's success.

Ms. Yogalakshmi S, 33, serves as the Company's Promoter and Whole Time Director. Holding a Bachelor's in Electronics and Communication Engineering from Anna University, she joined Basilic Fly Studio in 2013 after working in a U.S. IT firm. With over 11 years of VFX experience, she manages operations and has been crucial to the company's growth and development.

Mr. Prabhakar D, 35, is the Company's Whole Time Director. With a diploma in Multimedia from Hindustan Institute of Technical Training, Chennai, he brings over 14 years of VFX experience and has contributed to several notable films.

Global VFX Industry Overview

In 2022, the global VFX market was worth USD 9.95 billion and is projected to grow at a 10.4% CAGR, reaching nearly USD 18.02 billion by 2028. North America, driven by Hollywood, leads this market. Growth factors include rising demand for quality content, especially due to digital streaming services like Netflix and Amazon Prime. With the growing use of smart devices, high-quality VFX is becoming crucial for both studios and streaming services, offering significant business opportunities in the coming years.

A key driver for global VFX growth is the rise of augmented reality (AR). As demand for digital content grows, AR is becoming increasingly important for enhancing visual effects and streamlining post-production. Integrated AR cameras help filmmakers preview and select optimal scenes. With AR's expanding role in media and entertainment, more VFX providers are adopting this technology, particularly in the movie sector.

Basilic Fly Studio IPO Details:

IPO Open and Close DateSep 1, 2023 to Sep 5, 2023
IPO price range₹92 to ₹97 per share
Lot Size1200 Shares
IPO size₹66.35 Cr
Basis of AllotmentFriday, 8 September 2023
Credit of Shares to DematTuesday, 12 September 2023
Listing DateWednesday, 13 September 2023

Basilic Fly Studio IPO Reservation:

QIB Shares OfferedNot more than 50% of the Net Offer
NII (HNI) Shares OfferedNot less than 15% of the Net Offer
Retail Shares OfferedNot less than 35% of the Offer

IGYR Capital Advisors Private Limited has been appointed as the book-running lead manager for the Basilic Fly Studio IPO, while Purva Sharegistry (India) Private Limited will serve as the registrar to the issue. The shares are expected to be listed on  NSE, with a tentative listing date of September 13, which falls on a Monday.

Objectives of the Basilic Fly Studio IPO issue:

The company plans to use the money raised from the issue to:

i. Cover the costs of opening new studios in Hyderabad and Salem.

ii. Upgrade existing facilities in Chennai and Pune.

iii. Invest in expanding and improving workspace in London and Vancouver through subsidiaries. 

iv. Cover general business costs and expenses related to the issue.

Basilic Fly Studio Financial Analysis:

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)
Total Revenue78.9525.29
Profit After Tax27.740.901
Current Assets40.61588.1927
Current Liabilities16.66.7665

The Current Assets have increased from Rs 8.19 Crores in March 2022 to Rs 40.61 Crores in March 2023, with a significant increase of 395.76% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from Rs. 25.28 Crores in FY22 to Rs. 78.95 Crores in FY23, with a conspicuous increase of 212.21%. Moreover, Net profits have also seen an increase, going up from Rs. 0.901 Crores in FY22 to Rs. 27.74 Crores in FY23, with a striking increase of three times to 2978.82% over the past year.

Key Performance IndicatorValues
EPS (Rs)16.32

Competitive Strengths of Basilic Fly Studio IPO:

  • Well equipped with advanced technology.
  • Experienced Promoters and Technically Sound Operation Team

Risk of Basilic Fly Studio:

  • The company has fallen behind on meeting certain legal requirements, which could result in fines and affect its financial health.
  • The company works in the fast-changing VFX industry, where client preferences shift quickly and success relies on how well the audience receives the content and brands they work on.
  • The company has sold stock in the past year at a price that might be lower than the current offering price.
  • The company is exposed to the risk of currency changes due to foreign exchange regulations and international transactions.
  • The company relies on contracts that clients can often end without penalties by giving notice.

Peers Comparison of  Basilic Fly Studio:

Name of the CompanyRevenue (In Crore)PAT (In Crore)EPS ( in Rs)P/E RatioMcap (In Crore)
Basilic Fly Studio Limited78.9527.7416.32 255
Prime Focus Limited4923.8194.498.59.292,586.50
Phantom Digital Effects Limited57.8916.215.979.59592.48