VFX Firm Identical Brains Studios Files DRHP With NSE Emerge

Identical Brains Studios (IBS), a visual effects (VFX) company has notified about the filing of its Draft Red Herring Prospectus (DRHP) with NSE Emerge. The company’s initial public offering comprises a fresh issuance of up to 36.94 lakh equity shares with a face value of Rs 10.00 each, through the book-building route. IBS intends to utilise the net proceeds from the IPO to fund capital expenditure towards the renovation of the existing office and studio in Andheri among other works.

Socradamus Capital is the sole Book Running Lead Manager to the offer, and Bigshare Services is the Registrar to the offer.

As per DRHP, the company plans on using the money to establish a colour grading digital intermediate (DI) and sound studio set up at the new branch office in Andheri along with funding the capex towards setting up a new branch office in Lucknow. In addition, it will use it to fund capex for the purchase of computers, storage systems and software to further strengthen the existing facilities/offices of the company along with funding the company’s incremental working capital requirements and for general corporate purposes.

As far as the financial performance is concerned, IBS posted Rs 20.08 crore revenue from operations in the financial year 2024 (FY24), compared to Rs 8.04 crore revenue from operations in FY23. It has recorded a net profit of Rs 5.34 crore in FY24 as against Rs. 1.61 crore in FY23, registering over three-fold growth in profit.

The Indian VFX industry has grown exponentially, from USD 107.7 million in calendar year (CY) 2020 to USD 647.2 million in CY 2023 at a compound annual growth rate (CAGR) of approximately 81.8 per cent and is projected to nearly triple in size, jumping from USD 647 million in CY 2023 to USD 1,823 million by CY 2030.