Chennai-based Basilic Fly Studio to launch IPO on September 1

Basilic Fly Studio, a visual effects studio, has chosen September 1 as the date for its initial public offering. The price band for the book-built issue will be announced in the coming days, but the expected amount raised via IPO is between Rs 65-70 crore.

The public offering of 68.4 million shares of common stock, representing 29.43 percent of post-issue paid-up equity, consists of a fresh issue of 62.4 million shares by the company and an offer-for-sale of six million shares by the promoters.

Promoters Balakrishnan and Yogalakshmi S, who hold a combined 85.40 percent of the company's shares, will each sell three lakh equity shares through an OFS.

Umesh Chamdia and Aparna Samir Thakker each possess a 6.65 percent stake in the company.

While the offer will be extended to anchor investors for one day on August 31, it will expire on September 5.

10,26 thousand shares are reserved for the market maker out of the total issuance. Therefore, the net issue would be 58.14 million shares of stock.

Half of the net offering size is allocated for qualified institutional buyers (QIB), 15% for high-net-worth individuals, and the remaining 35% for retail investors. In addition, up to 60% of the QIB allocation is reserved for anchor investors.

The visual effects studio headquartered in Chennai will use net proceeds from a fresh issue to establish a studio or facility in Hyderabad and Salem for up to Rs 21.36 crore, as well as add infrastructure to existing facilities or offices in Chennai and Pune for Rs 19.6 crore.

In addition, the company will invest up to Rs 4.65 crore in its subsidiaries for the expansion of office space by acquiring new office space in London and bolstering existing facilities or offices in Vancouver. The remaining funds will be used for corporate purposes and issue costs.

Basilic Fly Studio maintains subsidiaries that specialise in creating visual experiences in Canada and the United Kingdom in addition to its Chennai-based visual effects (VFX) studio.

In addition to having direct partnerships with a variety of production houses, the company has also collaborated with prominent VFX companies and studios via subcontracting agreements. It has generated significant revenue from VFX companies and studios, with direct business contributing 10.4% of the top line and sub-contracting contributing 89.6% of the top line.

In the past, it has produced films such as Top Gun: Maverick, The Whale, Spider-Man: No Way Home, Shang-Chi and the Legend of the Ten Rings, Avengers: Endgame, Mary Poppins Returns, and Alita: Battle Angel.

Basilic Fly Studio's profit for the fiscal year that ended in March of FY23 was Rs 26.44 crore, which is a significant increase from the previous year's profit of Rs 0.79 crore. During the same time period, revenue from operations increased from Rs 23.87 crore to Rs 70.2 crore.

The organisation will list its equity shares on the NSE's Emerge Platform.

The issue's merchant banker is GYR Capital Advisors, while its registrar is Purva Sharegistry (India).

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