Recode Studios Shares Hit Upper Circuit After 35% Listing Gain

Recode Studios made a strong stock market debut on Tuesday, with shares listing at ₹213.10 on the BSE SME platform against the initial public offering (IPO) price of ₹158. The listing translated into a gain of 34.87% for investors who received allotment in the public issue.

The momentum continued after listing as the stock climbed to the upper circuit of ₹223.75, taking gains for IPO investors to 41.61%. The strong debut followed heavy investor demand for the company’s ₹45 crore IPO, which was subscribed 234.64 times overall during the bidding window between 5 May and 7 May.

The beauty and personal care company saw strong participation across all investor categories. The qualified institutional buyer portion was subscribed 137.99 times, while the non-institutional investor category attracted bids worth 404.76 times the reserved quota. The retail portion was booked 216.65 times.

Recode Studios IPO Details

Here are the key details of Recode Studios IPO:

Where Will Recode Studios Use IPO Funds?

Recode Studios raised nearly ₹39 crore through the fresh issue portion of the IPO. Alongside this, 3,19,200 shares were sold through the offer for sale route, with those proceeds going directly to the selling shareholders.

The firm will invest ₹5.74 crore in setting up a new warehousing unit at Ludhiana, Punjab. A sum of ₹5.41 crore will be spent on advertising and marketing initiatives as the firm seeks to increase its footprint in the beauty domain. Meanwhile, ₹19.50 crore will be utilised to meet working capital requirements, and the rest will be used for other corporate purposes.

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What Does Recode Studios Do?

Formed in 2021, Recode Studios distributes beauty and personal care items branded as ‘Recode’ via an omnichannel approach. The company operates its own stores and franchise outlets while also selling products through online platforms including, Amazon, Nykaa, Myntra and Flipkart, along with its own website and mobile app.

The company currently has 24 stores spread across 14 states, including three company-owned outlets. Its portfolio includes make-up products, skincare items, body care products and beauty accessories. According to its IPO papers, the company offers more than 350 stock-keeping units across categories and price ranges, while manufacturing is handled by third-party vendors.

Financially, the company has shown sharp improvement over the past year. Net profit rose to ₹3.30 crore in FY25 from ₹27 lakh in FY24. Total income also continued to grow steadily and reached ₹47.94 crore in FY25.

Recode Studios made a profit of ₹9.06 crore during the period April - December 2025, while its revenue was ₹57.45 crore. In December 2025, debt stood at ₹3.43 crore, while its reserves and surplus were ₹9.70 crore.

Sources:

Monycontrol

Recode Studios RHP