Key Takeaways
- Recode Studios Ltd. IPO opens 5 May 2026 and closes 7 May 2026, with BSE SME listing on 12 May 2026.
- Price band: ₹150 to ₹158 per share | Lot size: 800 shares | Minimum retail investment: ₹2,52,800 (2 lots).
- Total issue size: ₹44.59 crore fresh issue of ₹39.55 crore plus offer for sale of ₹5.04 crore.
- Recode is a beauty and personal care brand with 350+ SKUs across face, eye and lip products, skincare and body care.
- Suitable only for risk-tolerant investors. SME IPOs carry liquidity risk, and Recode has only four years of operating history with concentrated supplier dependence.
Introduction
The Recode Studios Ltd. IPO is an Indian beauty and personal care brand selling makeup, skincare, and body care across face, eye, and lip categories. It is raising ₹44.59 crore through a book-built issue opening on 5 May 2026 and closing on 7 May 2026, with BSE SME listing on 12 May 2026.
This guide covers everything you need before subscribing Recode Studios IPO date, GMP, price band, lot size, allotment process, financials, key risks, and our apply-or-avoid verdict.
Recode Studios IPO Details: Dates, Price Band & Lot Size
Here are the complete Recode Studios IPO details every investor should review before placing a bid:
| Parameter | Recode Studios IPO Details |
| IPO Open Date | Tuesday, 5 May 2026 |
| IPO Close Date | Thursday, 7 May 2026 |
| Allotment Date | Friday, 8 May 2026 |
| Refund Initiation | Monday, 11 May 2026 |
| Listing Date | Tuesday, 12 May 2026 (BSE SME) |
| Price Band | ₹150 to ₹158 per equity share |
| Face Value | ₹10 per equity share |
| Lot Size | 800 shares (minimum bid 1,600 shares = 2 lots) |
| Minimum Investment (Retail) | ₹2,52,800 (2 lots of 800 shares each at ₹158) |
| Total Issue Size | ₹44.59 crore (28,22,400 equity shares) |
| Fresh Issue | ₹39.55 crore (25,03,200 shares) |
| Offer for Sale (OFS) | ₹5.04 crore (3,19,200 shares) |
| Issue Type | Book-built SME IPO |
| Listing Exchange | BSE SME |
| Lead Manager | Seren Capital Pvt Ltd |
| Registrar | Mudra RTA Ventures Pvt Ltd |
About Recode Studios Limited: Business Overview
Recode Studios Limited was incorporated on 16 June 2021 in Ludhiana, Punjab, and operates under the “Recode” brand in India’s beauty and personal care segment. The company sells make-up, skincare, body care, and beauty accessories through an omnichannel distribution model that combines company-owned company-operated (COCO) stores, franchise-owned franchise-operated (FOFO) outlets, its own website and mobile app, and major e-commerce marketplaces including Amazon, Flipkart, and Myntra.
Key Business Highlights
- Product portfolio: Over 350 SKUs across face, eye and lip make-up, skincare, body care, and beauty accessories.
- Retail footprint: 24 stores across 14 Indian states (3 COCO + 21 FOFO) as of September 2025.
- Asset-light model: No owned manufacturing, all products are sourced from third-party manufacturers in India, Germany, Taiwan, China and Thailand.
- Digital reach: Approximately 4.57 lakh Instagram followers, indicating an active social commerce presence.
- Revenue mix: Online sales contributed 42.86% of FY25 revenue, alongside franchise stores and B2B sales.
- Promoters: Dheeraj Bansal, Rahul Sachdeva, Shelly Bansal, Shalini Trehan, Preeti Trehan and Karan Bansal
Financials Revenue & Profitability of IPO
Recode Studios has shown rapid scaling typical of an asset-light beauty brand riding India’s social commerce wave. Revenue grew approximately 29.8% in FY25, while profit after tax (PAT) jumped more than 12 times year-on-year, a sign that the company has crossed its operating leverage inflexion point. Here is the financial snapshot from the Red Herring Prospectus:
| Metric (₹ Crore) | FY24 | FY25 |
| Revenue from Operations | 36.93 | 47.94 |
| Profit After Tax (PAT) | 0.27 | 3.30 |
| Online Sales Contribution | 36.36% of revenue | 42.86% of revenue |
| Operating Cash Flow | (₹1.64) negative | ₹3.14 (turned positive) |
The financials show three positive signals: revenue growth of ~30%, a 12x PAT jump, and a turn to positive operating cash flow in FY25. However, the FY24 PAT of just ₹0.27 crore versus FY25’s ₹3.30 crore raises a fair question about earnings durability. Only one full year of meaningful profitability is a thin track record on which to value an IPO.
Key Strengths of the Recode Studios
- Riding India’s beauty market boom: India’s colour cosmetics and personal care segment is expanding rapidly due to social media awareness, rising disposable incomes, and the premiumisation of mid-market beauty.
- Asset-light, scalable model: Contract manufacturing keeps capex low and lets the company launch new products fast, a structural advantage for a category with short product cycles.
- Improving financial trajectory: Revenue up ~30% in FY25, PAT up 12x, operating cash flow turning positive, all consistent signs of crossing the operating leverage threshold.
- Strong digital presence: Instagram following of 4.57 lakh and active D2C channels reflect genuine consumer pull, not just paid distribution.
- Owning influencer infrastructure: The ClanConnect investment is a forward-looking bet on social commerce, which is increasingly how Indian beauty brands acquire customers.
Risks Investors Should Know
Every IPO has risks, and the Red Herring Prospectus is honest about Recode’s challenges. These are the risks our research team flagged as most material for retail investors:
- Short operating history: Incorporated in June 2021. Only four years of operations and effectively one year of meaningful profitability make earnings durability hard to validate.
- 100% dependence on third-party manufacturers: Recode owns no manufacturing facilities. Any disruption with key contract manufacturers,s domestic or international, can hit product supply directly.
- Heavy supplier concentration: Top 10 suppliers contributed 87.43% of total purchases in the period ending December 2025, up from 65.87% in FY23, a rising and concerning concentration.
- Heavy supplier concentration: Top 10 suppliers contributed 87.43% of total purchases in the period ending December 2025, up from 65.87% in FY23, a rising and concerning concentration.
- Intense competition: Mamaearth, Nykaa, Sugar Cosmetics, and global brands all compete for the same digital-first beauty consumer Recode targets.
- E-commerce platform dependence: Online sales are over 40% of revenue, but rely on Amazon, Flipkart, and Myntra platforms that control listing policies, commissions, and search visibility.
- BSE SME liquidity risk: SME-listed stocks have structurally lower post-listing liquidity than mainboard issues, making large-position exits difficult.
- OFS component: The ₹5.04 crore OFS indicates partial promoter exit through the IPO; investors should weigh promoter conviction signals carefully.
- Geographic concentration: Warehousing and administrative operations are heavily concentrated in Ludhiana, Punjab, exposing the business to regional risk.
- ClanConnect execution risk: The ₹7 crore allocation to Irida Interactive is a meaningful bet; if the platform fails to scale, it becomes a sunk cost.
Recode Studios IPO Share Reservation Structure
Per SEBI guidelines for BSE SME book-built issues, the Recode Studios IPO net offer is divided across investor categories as follows:
| Investor Category | Reservation |
| Qualified Institutional Buyers (QIB) | Not more than 50% of the Net Offer |
| Retail Individual Investors (RII) | Not less than 35% of the Net Offer |
| Non-Institutional Investors (HNI) | Not less than 15% of the Net Offer |
| Market Maker Reservation | 1,44,800 equity shares (₹2.17–2.29 crore) |
Conclusion
The Recode Studios Ltd. IPO offers a focused bet on India’s growing beauty and personal care market through an asset-light brand that has just crossed its profitability inflexion point. The ~30% FY25 revenue growth, 12x PAT jump, and ClanConnect investment are constructive signals. But the four-year operating history, 87%+ supplier concentration, and BSE SME liquidity profile make this a calculated risk, not a guaranteed winner.
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FAQs
Q1. What is the Recode Studios IPO price band and lot size?
The Recode Studios IPO price band is set at ₹150 to ₹158 per equity share, with a face value of ₹10. The lot size is 800 shares, and retail investors must apply for a minimum of 2 lots (1,600 shares), which requires an investment of ₹2,52,800 at the upper price band.
Q2. What is the Recode Studios IPO GMP today?
As of 1 May 2026, the Recode Studios IPO GMP is around ₹11 per share, indicating a potential listing price of approximately ₹169, which is about 7% above the upper price band. However, GMP is unofficial and can change frequently, so investors should track the latest updates before applying.
Q3. Is the Recode Studios IPO good for retail investors?
The Recode Studios IPO may be suitable for risk-tolerant retail investors who are comfortable with SME IPO volatility and early-stage companies. While the company has shown strong revenue growth (~30%) and a sharp increase in profits, risks such as limited operating history and supplier dependency should be carefully considered.
Q4. What is the Recode Studios IPO listing date?
The Recode Studios IPO is expected to be listed on 12 May 2026 on the BSE SME platform. Shares are likely to be credited to demat accounts on 11 May 2026, ahead of the listing.
Q5. How much should I invest in the Recode Studios IPO?
The minimum investment for retail investors is ₹2,52,800. However, experts generally recommend limiting exposure to SME IPOs to 5–10% of your total portfolio, considering their higher risk and lower liquidity compared to mainboard IPOs.
Disclaimer:
This blog is intended for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or sell any securities. Investments in the securities market are subject to market risks. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
