Recode Studios IPO 2026 – Price Band, GMP, Review & Should You Apply?
Beauty is big business in India right now — and Recode Studios is trying to prove that a four-year-old brand can compete with industry veterans. Now going public through a ₹45 crore BSE SME IPO, Recode Studios Limited is bringing its 350+ product lineup, omnichannel retail strategy, and rapidly growing profit story to stock market investors.
Should you apply? Let’s find out.
Recode Studios IPO Details at a Glance
- IPO Open Date: May 5, 2026
- IPO Close Date: May 7, 2026
- IPO Type: BSE SME (Book Built Issue)
- Issue Size: ₹44.59 Crores
- Fresh Issue: ₹39.55 Crores (0.25 Cr shares)
- Offer for Sale (OFS): ₹5.04 Crores (0.03 Cr shares)
- Price Band: ₹150 to ₹158 per share
- Face Value: ₹10 per share
- Lot Size: 800 shares (minimum 2 lots = 1,600 shares for retail)
- Minimum Investment (Retail): ₹2,52,800
- Allotment Date: May 8, 2026
- Listing Date: May 12, 2026 (BSE SME)
- Registrar: Mudra RTA Ventures Pvt. Ltd.
- Lead Manager: Seren Capital Pvt. Ltd.
- Retail Quota: 35% | QIB: 50% | HNI: 15%
About Recode Studios Ltd
Recode Studios Limited was incorporated in June 2021 in Ludhiana, Punjab — making it just 4 years old at the time of its IPO.
The company operates under the "Recode" brand and sells beauty and personal care products including makeup, skincare, body care, and accessories. Their product range includes over 350 SKUs across face makeup, eye makeup, lip products, and beauty tools.
Recode follows a strong omnichannel strategy:
- Online: Website + platforms like Nykaa, Amazon, Myntra, Flipkart
- Offline: COCO (Company Owned) and FOFO (Franchise Owned) stores across 12–14 states
The company uses an asset-light model, outsourcing manufacturing to multiple domestic and international vendors.
Promoters: Dheeraj Bansal, Rahul Sachdeva, Karan Bansal, Shalini Trehan, Shelly Bansal, and Preeti Trehan.
GMP – Grey Market Premium Analysis
As of May 4–5, 2026, the GMP for Recode Studios IPO is around ₹11 above the upper price band of ₹158.
- Expected Listing Price: ~₹169
- Expected Listing Gain: ~7%
Earlier GMP had touched ₹40 (around 25%), but cooled down later — which is common in SME IPOs.
👉 Conclusion: Positive but moderate listing expectations.
Pros of Recode Studios IPO
1. Explosive PAT Growth
Profit increased from ₹0.27 Cr (FY24) → ₹3.30 Cr (FY25) → ₹9.06 Cr (9MFY26)
2. Strong Revenue Growth
Revenue grew from ₹36.93 Cr (FY24) to ₹47.94 Cr (FY25), and ₹57.45 Cr in 9 months of FY26
3. High ROE (46.37%)
Indicates excellent capital efficiency
4. Omnichannel Distribution
Presence across online platforms and physical stores reduces dependency risk
5. Strong Digital Brand Presence
- 4.57 lakh+ Instagram followers
- 7.54 million website visits
6. Growing Industry
India’s beauty sector growing at 10–12% CAGR
Cons of Recode Studios IPO
1. Very New Company
Only 4 years of operations — limited track record
2. Fully Outsourced Manufacturing
Dependency on third-party vendors
3. Trademark Disputes
Legal risks mentioned in DRHP
4. High Valuation (~39x P/E)
Premium pricing for a young company
5. High Investment Requirement
₹2.52 lakh minimum — not suitable for small investors
6. Low Liquidity Risk
SME stocks may have low trading volumes post listing
Financial & Growth Outlook
Recode Studios is one of the fastest-growing SME IPO companies currently.
- FY26 (9 months) revenue already exceeded FY25
- Strong expansion in East India region
- IPO funds usage:
- Warehouse: ₹5.74 Cr
- Marketing: ₹5.41 Cr
- Working Capital: ₹19.50 Cr
If growth continues at 30–40%, current valuation becomes reasonable.
Listing Expectations
Short-Term
Expected listing around ₹165–₹170 based on GMP
Long-Term
Strong potential if:
- Brand growth continues
- Retail expansion increases
- Online sales scale further
Who Should Invest / Who Should Avoid
Apply If You:
- Understand SME IPO risks
- Believe in beauty sector growth
- Can hold for 1–2 years
- Want moderate listing gains (~7%)
Avoid If You:
- Prefer low-risk investments
- Cannot invest ₹2.52 lakh
- Want long-established companies
- Are uncomfortable with legal risks
How to Apply for Recode Studios IPO
- Open broker app (Zerodha, Upstox, Groww, Angel One)
- Search “Recode Studios IPO”
- Apply for minimum 2 lots (1,600 shares)
- Enter UPI ID
- Approve mandate
- Check allotment on May 8
- Shares credited May 11, listing on May 12
Final Verdict
Recode Studios IPO offers a high-growth beauty brand story with strong financial momentum.
- GMP indicates moderate listing gains
- Strong fundamentals but higher risk due to early-stage business
👉 Verdict:
Subscribe for listing gains + selective long-term investment
- Aggressive investors: Apply
- Conservative investors: Avoid or wait
FAQs
Q1: What is the price band of Recode Studios IPO?
₹150 to ₹158 per share
Q2: What is GMP today?
Around ₹11
Q3: Listing date?
May 12, 2026
Q4: What does the company do?
Beauty products — makeup, skincare, accessories
Q5: Is it profitable?
Yes, strong profit growth with ₹9.06 Cr PAT (9MFY26)
Q6: How to check allotment?
Via Mudra RTA website using PAN/application number
