Recode Studios’ SME IPO Surges With Unprecedented Demand on Final Day, Highlighting Investor Enthusiasm.

The Recode Studios IPO, a much-anticipated venture closing today on the BSE SME platform, has garnered remarkable interest from investors, highlighting the growing appetite for niche players in the Indian cosmetics sector. With the issue size of ₹44.59 crore, the subscription figures are impressive, with an overall oversubscription of over 33 times by the end of Day 2. Notably, the retail category was subscribed 40.56 times, while the High Net-worth Individual (HNI) segment reached an impressive 56.41 times, reflecting strong confidence among affluent investors. The resale segment—dubbed the “Big HNI”—was particularly robust, with a staggering subscription of 65.97 times, signaling a strong belief in the company’s potential for growth.

Recode Studios, known for gaining significant exposure after its appearance on Shark Tank India, has adeptly utilized the backlash from its original pitch rejection to foster a loyal customer base. The company’s profits have surged impressively, rising from ₹0.27 crore in FY24 to ₹3.30 crore in FY25 and reaching ₹9.06 crore in just the first nine months of FY26. This growth trajectory, coupled with enhanced EBITDA margins and a focus on cost efficiency through overseas partnerships, positions Recode favorably against competitors. Its unique business model, combining a robust online presence with franchise outlets, is attractive to investors seeking high-growth opportunities in the evolving beauty segment.

As for the IPO pricing, it is set between ₹150-158 per share with a lot size of 800 shares, and the grey market premium (GMP) has shown a steady upside, rising from ₹11 to ₹44 over the course of the offering. This trend indicates an anticipated listing price around ₹202, which would represent a healthy return of roughly 28% for investors who successfully secure allotment. However, investors should remain cautious; reliance on foreign manufacturers and the impending competition from established brands can be challenges for Recode moving forward. The listing is expected on May 12, 2026, and if the GMP remains stable, it could reward retail investors handsomely.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)