Identical Brains Studios Lists at 76% Premium, Demonstrates Strong Market Reception on NSE SME

Identical Brains Studios Limited, an award-winning visual effects (VFX) services provider operating since 2019, marked a remarkable entry into the public markets on Thursday, 26th December 2024. The company, which has established itself through critically acclaimed work on major productions like Scam 1992 and Rocket Boys, commenced trading on the NSE SME platform amid significant investor enthusiasm.

Identical Brains Listing Details

The company's market debut reflected exceptional investor confidence in its business model and growth prospects:

• Listing Time & Price: When trading commenced at market open, Identical Brains Studios shares debuted at ₹95 on NSE SME, delivering an impressive 75.9% premium to IPO investors. This strong opening validates the market's recognition of the company's established VFX capabilities and growing project portfolio, which includes upcoming high-profile projects like Tanaav 2 and Criminal Justice 4.
• Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹51 and ₹54 per share, ultimately fixing the final issue price at ₹54. This pricing approach successfully balanced retail investor accessibility with fair value for the company's growth potential.
• Price Evolution: By 10:44 AM IST, investor enthusiasm continued to build, pushing the stock to hit the upper circuit at ₹99.75. This represented an outstanding gain of 84.7% over the issue price, demonstrating sustained buying interest throughout the early trading session.

Identical Brains First-Day Trading Performance 

The trading activity showed robust participation and strong investor conviction:

• Volume and Value: Within just the first few hours, 18.14 lakh shares changed hands, generating a substantial turnover of ₹17.07 crore. Notably, 100% of traded shares were marked for delivery, indicating genuine investment interest rather than speculative trading.
• Demand Dynamics: The stock's appeal was evident in the order book, which showed tremendous buying pressure with orders for 1.88 lakh shares while sellers remained absent at the upper circuit. This imbalance highlighted strong investor belief in the company's long-term prospects.

Identical Brains Market Sentiment and Analysis

• Market Reaction: Strong buying interest with immediate upper circuit hit
• Subscription Rate: The Identical Brains IPO was significantly oversubscribed by 544.28 times, with NIIs leading at 1,020.2 times subscription, followed by retail investors at 544.28 times, and QIBs at 187.36 times
• Pre-listing Interest: Anchor investors demonstrated strong confidence by investing ₹5.66 crore before the public issue

Identical Brains Growth Drivers and Challenges

Expected drivers of future performance:

• Award-winning track record including Filmfare OTT Awards
• Strong pipeline of upcoming high-profile projects
• Operations in strategic entertainment hubs
• Skilled creative and technical workforce
• Established relationships with major production houses

Potential challenges:

• Project-dependent revenue streams
• Rapid technological evolution in VFX
• Competitive entertainment industry
• Talent retention and development needs
   

Utilisation of IPO Proceeds 

The ₹19.95 crore raised will be used for:

• Renovation of existing Andheri office and studio
• Establishment of Color Grading DI and Sound Studio
• Setting up new Lucknow branch office
• Technology infrastructure enhancement
• Working capital requirements
• General corporate purposes

Identical Brains Financial Performance 

The company has shown exceptional growth:

• Revenue increased by 150.71% to ₹2,026.38 lakhs in FY2024 from ₹808.26 lakhs in FY2023
• H1 FY2025 (ended September 2024) showed strong revenue of ₹1,149.62 lakhs with PAT of ₹240.54 lakhs
• Outstanding financial metrics with ROE of 71.66% and ROCE of 103.52%

As Identical Brains Studios begins its journey as a listed entity, market participants will closely monitor its ability to execute its project pipeline and expand its technological capabilities. The strong listing and immediate upper circuit suggest robust investor confidence in the company's prospects in India's rapidly growing visual effects and entertainment sector. The company's focus on expanding its infrastructure and technical capabilities through IPO proceeds positions it well to capture opportunities in this dynamic market.