Chennai-based Basilic Fly Studio to launch IPO on September 1
Basilic Fly Studio, a prominent player in the visual effects sector, is set to make its debut in the public market with an IPO launch scheduled for September 1. While the specific price range for the book built issue is yet to be disclosed, preliminary indications suggest that the fund-raising through this initial public offering is anticipated to fall within the range of Rs 65-70 crore.
The IPO will encompass a total of 68.4 lakh equity shares, equivalent to 29.43 percent of the post-issue paid-up equity of the company. This offering comprises two components: a fresh issue of 62.4 lakh shares by Basilic Fly Studio and an offer-for-sale (OFS) of six lakh shares by the promoters.
Promoters Balakrishnan and Yogalakshmi S, who collectively possess an 85.40 percent shareholding in the company, will engage in an offer-for-sale of three lakh equity shares each. This move is aimed at diversifying ownership and increasing public participation in the company’s shares.
The IPO marks a significant step for Basilic Fly Studio as it seeks to tap into the capital markets to support its growth ambitions and enhance its market visibility. As the visual effects industry continues to evolve and expand, the IPO provides an opportunity for investors to participate in the growth trajectory of the company and capitalize on its potential.
The forthcoming announcement of the price band for the IPO will provide further insights into the valuation expectations and investment proposition for potential investors. As Basilic Fly Studio embarks on this milestone, the market will closely watch its IPO journey, assessing its value proposition and growth prospects in the dynamic visual effects landscape.
The offloading of shares by the promoters through the offer-for-sale mechanism is a common practice that aims to enhance liquidity, broaden ownership, and provide an avenue for existing shareholders to partially monetize their holdings. As the IPO progresses, the participation of institutional and retail investors will shape the outcome and set the stage for Basilic Fly Studio’s new chapter as a publicly traded entity.
Within the ownership structure of Basilic Fly Studio, public shareholders Umesh Chamdia and Aparna Samir Thakker each hold a substantial 6.65 percent stake in the company, underscoring a diversified shareholder base.
The IPO process will unfold with a day dedicated to anchor investors, scheduled for August 31, providing institutional investors an early opportunity to participate in the offering. Following this, the IPO subscription window will be open until September 5.
The complete issue size comprises 68.4 lakh equity shares, with 10.26 lakh shares allocated for the market maker. Consequently, the net issue size, available for subscription by investors, will amount to 58.14 lakh equity shares.
A structured allocation has been set to ensure broad investor participation and balanced distribution. Of the net issue size, 50 percent has been earmarked for qualified institutional buyers (QIBs), 15 percent for high net worth individuals (HNIs), and the remaining 35 percent for retail investors. This allocation framework aims to accommodate different investor categories and their preferences, promoting wider market participation.
Furthermore, a significant portion of the QIB category—up to 60 percent—is exclusively reserved for anchor investors. These anchor investors, typically institutional players, are provided with an early opportunity to subscribe to the IPO before the general subscription window opens. This allocation strategy seeks to attract strong institutional interest and anchor support, lending credence to the IPO’s prospects.
The comprehensive approach to allocation emphasizes inclusivity, equity, and the promotion of a diversified investor base. By reserving portions for various investor categories, Basilic Fly Studio’s IPO aims to foster widespread interest, stimulate demand, and ensure a well-rounded distribution of shares among both institutional and retail participants. The structure not only reflects regulatory considerations but also enhances market engagement and sets the stage for a successful IPO journey.
Basilic Fly Studio, headquartered in Chennai and operating as a dynamic visual effects studio, has outlined a strategic utilization plan for the net fresh issue proceeds from its IPO.
The company has earmarked a portion of the funds, up to Rs 21.36 crore, for the establishment of new studios or facilities in Hyderabad and Salem. This initiative aligns with its growth strategy by expanding its geographic presence and enhancing its operational capabilities in key locations.
Additionally, Basilic Fly Studio aims to bolster its existing infrastructure and facilities. An allocation of Rs 19.6 crore is designated for strengthening its offices and facilities in Chennai and Pune. This investment signifies the company’s commitment to maintaining and enhancing its core operational hubs.
The company’s expansion efforts extend beyond domestic borders, with plans to invest in its international subsidiaries. The goal is to acquire new office space in London, thereby expanding its workspace in the UK market. Furthermore, the company intends to strengthen its existing facilities or offices in Vancouver, Canada, with an allocated amount of up to Rs 4.65 crore. These investments underscore the global nature of Basilic Fly Studio’s operations and its aspiration to deliver visual experiences across international markets.
Remaining funds will be allocated for general corporate purposes and to cover issue-related expenses. This comprehensive allocation strategy demonstrates Basilic Fly Studio’s strategic focus on enhancing its infrastructure, expanding its footprint, and ensuring operational readiness to cater to evolving market demands.
Apart from its Chennai-based visual effects studio, Basilic Fly Studio’s reach extends through its subsidiaries in Canada and the UK. These subsidiaries specialize in creating captivating visual experiences, aligning with the company’s mission to deliver innovative and immersive visual content to audiences worldwide.
By strategically directing the net fresh issue proceeds toward expansion, infrastructure development, and subsidiary enhancement, Basilic Fly Studio aims to position itself for sustained growth, maintain a competitive edge, and deliver compelling visual narratives across various markets and platforms.
Basilic Fly Studio has established itself as a key player in the visual effects (VFX) industry, fostering both direct partnerships with diverse production houses and collaborations with renowned VFX companies and studios through sub-contracting arrangements. The company’s revenue stream is predominantly influenced by these partnerships and collaborations, contributing to its substantial growth.
Within this dynamic ecosystem, Basilic Fly Studio’s revenue structure is characterized by two main segments. The direct business channel, where it partners directly with production houses, contributes 10.4 percent to the company’s topline. Meanwhile, the sub-contracting segment, where the company collaborates with prominent VFX companies and studios, significantly drives revenue, constituting 89.6 percent of the overall revenue mix.
The studio’s impressive portfolio encompasses an array of noteworthy projects in the film industry. Notable projects include blockbuster titles like “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.” These collaborations underline the company’s ability to contribute visually compelling elements to a diverse range of films.
The financial performance of Basilic Fly Studio reflects its strong position in the industry. For the fiscal year ending March FY23, the company reported a significant increase in profit, recording Rs 26.44 crore compared to the previous year’s Rs 0.79 crore. This robust growth in profitability is matched by a notable surge in revenue from operations, which climbed from Rs 23.87 crore to Rs 70.2 crore during the same period. These financial indicators underscore the studio’s capacity to generate value and deliver results amid a dynamic and competitive landscape.
Basilic Fly Studio’s success story is rooted in its ability to forge meaningful partnerships, leverage sub-contracting arrangements, and consistently deliver high-quality visual effects for a wide array of films. Its prowess in executing projects for prominent titles further cements its reputation as a reliable and innovative player within the VFX industry, setting the stage for continued growth and prominence.
