Basilic Fly Studio IPO: Unveiling the VFX and Animation Stock Market Potential
Prepare for the exciting Initial Public Offering (IPO) of Basilic Fly Studio Limited, scheduled to open for subscription from September 1, 2023, to September 5, 2023. Dive into this investment opportunity with IPO prices ranging between ₹92 and ₹97, featuring a lot size of 1200 shares, requiring a minimum investment of ₹116,400.
Mark your calendars for the IPO listing date on September 13, 2023. The total IPO size stands at an impressive Rs. 66.35 Crores, encompassing a fresh issue of Rs. 60.53 Crores and an Offer-for-Sale (OFS) of Rs. 5.82 Crores.
Basilic Fly Studio IPO: A Business Overview in Animation and VFX
Established in 2012, Basilic Fly Studio has emerged as a premier provider of cost-effective and high-quality visual effects services for movies, TV shows, web series, and advertisements. With a strong presence in India and international offices in cities like London and Vancouver, Basilic Fly Studio is a key player in the VFX industry.
Key Pillars of Basilic Fly Studio’s Success:
- Comprehensive Visual Effects Services: Offering a full suite of VFX services, from supervision to special effects, creature design, background creation, layering, camera tracking, touch-ups, and frame-by-frame editing.
- Leveraging India’s Talent Pool: Utilizing India’s skilled workforce and cost advantages while maintaining local connections for clients in the US and the UK.
- Cutting-Edge Technology: Employing a highly skilled team that harnesses the latest technology to create captivating visuals.
- Scalability: Demonstrating the ability to manage projects of all sizes swiftly and adapt to changing needs.
- Unparalleled Creativity: Leading the VFX industry through exceptional creativity, technical expertise, and an unwavering commitment to quality.
Meet the Visionaries:
- Mr. Balakrishnan, 37: Promoter and Managing Director, brings over 13 years of industry experience, contributing significantly to the company’s growth.
- Ms. Yogalakshmi S, 33: Promoter and Whole Time Director, with 11 years of VFX experience, plays a pivotal role in managing operations and development.
- Mr. Prabhakar D, 35: Whole Time Director, boasting 14 years of VFX expertise and contributing to noteworthy films.
A Global Perspective on the VFX Industry
In 2022, the global VFX market achieved a value of USD 9.95 billion, with a projected growth rate of 10.4% CAGR, anticipated to reach nearly USD 18.02 billion by 2028. North America, driven by Hollywood, takes the lead in this market. Factors fueling this growth include the surging demand for top-notch content, particularly due to digital streaming giants like Netflix and Amazon Prime. As smart devices become ubiquitous, high-quality VFX becomes pivotal for studios and streaming services, promising substantial business prospects in the years ahead.
The rise of augmented reality (AR) is a key catalyst for global VFX expansion. With the increasing demand for digital content, AR plays a crucial role in enhancing visual effects and streamlining post-production processes. Integrated AR cameras aid filmmakers in previewing and selecting optimal scenes, and the movie sector is increasingly embracing this technology.
Basilic Fly Studio IPO: Vital Details
- IPO Open and Close Date: Sep 1, 2023, to Sep 5, 2023
- IPO Price Range: ₹92 to ₹97 per share
- Lot Size: 1200 Shares
- IPO Size: ₹66.35 Crores
- Basis of Allotment: Friday, 8 September 2023
- Credit of Shares to Demat: Tuesday, 12 September 2023
- Listing Date: Wednesday, 13 September 2023
Reserving Your Stake in Basilic Fly Studio IPO:
- QIB Shares Offered: Not more than 50% of the Net Offer
- NII (HNI) Shares Offered: Not less than 15% of the Net Offer
- Retail Shares Offered: Not less than 35% of the Offer
IGYR Capital Advisors Private Limited assumes the role of the book-running lead manager for the Basilic Fly Studio IPO, a pioneer in VFX and Animation Stock market with Purva Sharegistry (India) Private Limited serving as the registrar to the issue. The shares are expected to be listed on NSE, tentatively on September 13, a Monday.
Exploring the Aims of the Basilic Fly Studio IPO:
The funds generated from the IPO will be allocated towards:
i. Establishing new studios in Hyderabad and Salem.
ii. Enhancing existing facilities in Chennai and Pune.
iii. Expanding and enhancing workspace in London and Vancouver through subsidiaries.
iv. Covering general business expenses related to the issue.
Basilic Fly Studio Financial Snapshot:
Particulars FY23 (in Rs Crores) FY22 (in Rs Crores) Total Revenue 78.95 25.29 Expenditure 41.15 23.9575 Profit After Tax 27.74 0.901 Current Assets 40.6158 8.1927 Current Liabilities 16.6 6.7665
Notable Financial Highlights:
- Current Assets surged from Rs 8.19 Crores in March 2022 to Rs 40.61 Crores in March 2023, marking a remarkable 395.76% increase, showcasing robust asset performance.
- In terms of revenue, the Company exhibited significant growth, with total revenue escalating from Rs. 25.28 Crores in FY22 to Rs. 78.95 Crores in FY23, reflecting an impressive increase of 212.21%. Furthermore, net profits recorded a substantial growth, surging from Rs. 0.901 Crores in FY22 to Rs. 27.74 Crores in FY23, demonstrating a remarkable growth rate of 2978.82% over the past year.
Key Performance Indicators:
- Return on Equity (ROE): 155.63%
- Debt/Equity Ratio: 0.14
- Earnings Per Share (EPS): Rs 16.32
Competitive Strengths of Basilic Fly Studio IPO:
- Cutting-Edge Technology Infrastructure
- Seasoned Promoters and Technically Proficient Operations Team
Challenges and Risks:
- Compliance Challenges: The company has faced difficulties in meeting certain legal requirements, potentially resulting in fines and impacting financial health.
- Dynamic Industry Landscape: The VFX industry is fast-paced, with rapidly changing client preferences, making audience reception and brand success critical factors.
- Pricing Concerns: The company previously sold stock at prices potentially lower than the current offering price.
- Currency Risk: Exposure to currency fluctuations due to foreign exchange regulations and international transactions.
- Contractual Vulnerability: The company relies on contracts that clients can terminate without penalties by providing notice.
Comparative Analysis with Peers:
| Company Name | Revenue (In Crore) | PAT (In Crore) | EPS ( in Rs) | P/E Ratio | Market Cap (In Crore) |
|---|---|---|---|---|---|
| Basilic Fly Studio Limited | 78.95 | 27.74 | 16.32 | – | 255 |
| Prime Focus Limited | 4923.8 | 194.49 | 8.5 | 9.29 | 2,586.50 |
| Phantom Digital Effects Limited | 57.89 | 16.2 | 15.97 | 9.59 | 592.48 |
Don’t miss this opportunity to be part of the Basilic Fly Studio IPO, a burgeoning player in the dynamic world of Animation and VFX. Stay tuned for further updates and analysis as the IPO journey unfolds.
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