Basilic Fly Studio IPO Final Subscription Status

Basilic Fly Studio IPO closed on Monday, 05th September 2023. The IPO had opened for subscription on 01st September 2023. Let us look at the final subscription status of Basilic Fly Studio Ltd at the close of subscription on 05th September 2023. The price band for the IPO was fixed at ₹92 to ₹97 and the stock has a face value of ₹10.

About the Basilic Fly Studio IPO

Basilic Fly Studio IPO worth ₹66.35 crore comprises of a fresh issue and also an offer for sale (OFS) component. The Fresh Issue portion of Basilic Fly Studio Ltd entails the issue of 62.40 lakh shares which at the upper band of the price range at ₹97 per share aggregates to ₹60.53 crore. The offer for sale (OFS) portion of Basilic Fly Studio Ltd entails the sale of 6.00 lakh shares which at the upper band of the price range at ₹97 per share aggregates to ₹5.82 crore. Therefore, the overall issue of Basilic Fly Studio Ltd entails the issue of 68.40 lakh shares which at the upper band of the price range at ₹97 per share aggregates to ₹66.35 crore, which is the total size of the IPO.

The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 1,200 share each. Thus, the minimum investment of ₹116,400 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs / NIIs can invest in a minimum of 2 lots of 2,400 shares worth ₹232,800 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. Basilic Fly Studio Ltd will deploy the funds for working capital needs and for extending loans to subsidiaries as well as general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 85.42% to 59.90%. The issue is lead managed by GYR Capital Advisors Private Ltd, while Purva Share Registry India Private Ltd will be the registrars to the issue. Let us now turn to the final subscription details of the IPO as of the close of subscription on 05th September 2023.

Final subscription status of Basilic Fly Studio IPO

Here is the subscription status of the Basilic Fly Studio Ltd IPO as at close on 05th September 2023. The oversubscription to the  issue has been phenomenal at 358.6 times with the NII segment getting the best response at 549.44 times followed by the retail investors and the QIB investors in that order.

The issue was open for retail investors, QIBs and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. the QIBs, the retail and the HNI / NII. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO. A total of 10,26,000 shares were allocated as market maker portion to Share India Securities Ltd, which will act as a market maker to provide bid-ask liquidity on the counter post listing. Market maker action not only improves liquidity in the counter but also reduces the basis risk.

As can be seen, from the above table, the company had allocated 25.49% of its original issue size to anchor investors. The anchor allotment was done on 31st August 2023 and details and the anchor allocation was spread across 4 anchor investors. All the anchor allocation was done at the upper end of the price band at ₹97 per share. Out of the 68.40 lakh shares allocated under the anchor portion, Rajasthan Global Securities Private Ltd was allocated 76.32% of the anchor portion while LRSD Securities Private Ltd was allocated 11.84% of the anchor portion. In addition, Saint Capital Fund was allocated 5.92%, while Silver Station Ltd got the residual 5.92% of the anchor allocation. The anchor portion is adjusted to the overall QIB quota and the QIB public quota is reduced to that extent.

How subscription built up for the Basilic Fly Studio IPO

The oversubscription of the IPO was dominated by the HNI / NIIs followed by the retail investors and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Basilic Fly Studio Ltd IPO.

It is clear from the above table that all the 3 segments viz. the QIB segment, the NII / HNI segment and the retail segment showed substantial oversubscription on the first day of the IPO itself. Of course, they gradually built heft with most of the support coming on the third and last day of the IPO. There is an allocation of 10,26,000 shares to Share India Securities Ltd for market making. The market maker offers two way quotes on the stock post listing using the inventory of shares and ensures that investors do not get overly worried about liquidity and basis risk in the early stages. The overall subscription response to the SME IPO of Basilic Fly Studios Ltd was among the best seen for SME IPOs in the past with robust demand seen across all the 3 critical investors segments in the IPO.

The IPO of Basilic Fly Studio Ltd opened for subscription on 01st September 2023 and closed for subscription on 05th September 2023 (both days inclusive). The basis of allotment will be finalized on 08th September 2023 and the refunds will be initiated on 11th September 2023. In addition, the demat credits are expected to happen on 12th September 2023 and the stock is scheduled to list on 13th September 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.

A quick word on Basilic Fly Studio Ltd and the SME IPO

Basilic Fly Studio Ltd is one of India’s foremost players in visual effects (VFX) and has been around since 2012. VFX is an amalgam of creativity and technology and the ability and audacity to put both to good use. Basilic Fly Studio Ltd delivers exceptional VFX solutions for a range of projects including movies, TV & OTT series, as well as commercials. Today the company employs over 500 skilled professionals and the company has a global reach stretching across India, London, and Vancouver. Be it some of the biggest movies like Hercules, Avengers or Top Gun, Basilic Fly Studio has played a key role in creating enchanting visual effects. Some of the big movies they worked globally include Avataar, Man vs Bee, Extraction, Spider Man, Mary Poppins Returns, Thor, Guardians of the Galaxy, Alice in Wonderland, House of Dragon, Gangs of London, Swan Song and Notre Dame on Fire. This is still just a partial list of movies that Basilic Fly Studio Ltd has contributed to.

When we talk of VFX, there are several product and service subsets. Here is a quick list of what it includes and the palate of offerings by Basilic Fly Studio Ltd. The offer FX, which elevates any environment through awe-inspiring effects that can change the atmosphere completely. Magnificent creatures come to life, powered by gripping AI technology, and designed by leading VFX artists using animation designs. Recreates rich biomes to transport the audience transport deep into dark forests or rolling tundra regions. Basilic Fly also does Composting, which is about putting life and emotions into abstract shots. It makes the move more engaging. Basilic Fly Studio also specializes in Rotomation, which is a cutting-edge VFX technology to captures the motion of actual actors or objects and apply that data to computer-generated characters. Finally, the company also substantially improves the final visual appearance through Paint and Prep and Rotoscopy to improve live videos and produce flawless composites.

The company has been promoted by Balakrishnan and Yogalakshmi. The promoter holding in the company currently stands at 85.42%. However, post the fresh issue of shares and the OFS, the promoter equity holding share will reduce to 59.90%. The fresh issue funds will be used by the company for setting up studio facilities in Hyderabad and Salem. It will also use funds to add to existing infrastructure in Chennai and Pune apart from capitalizing its subsidiaries, including the offices at Vancouver. Part of the funds will also go towards general corporate purposes. While GYR Capital Advisors Private Ltd will be the lead manager to the issue, Purva Share Registry India Private Ltd will be the registrar to the issue. The market maker for the issue is Share India Securities Ltd.