Basilic Fly Studio, a visual effects studio, has decided to launch its maiden public issue on September 1. The price band for the book built issue will be announced in coming days, but the fund raising via IPO is expected to be in the range of Rs 65-70 crore.
The public issue of 68.4 lakh equity shares, which is 29.43 percent of post issue paid-up equity, comprises a fresh issue of 62.4 lakh shares by the company and an offer-for-sale of six lakh shares by the promoters.
Promoters Balakrishnan, and Yogalakshmi S, who hold 85.40 percent shareholding in the company, will be offloading three lakh equity shares each via OFS.
Public shareholders Umesh Chamdia and Aparna Samir Thakker hold 6.65 percent stake each in the company.
While the bidding will be opened for a day for anchor investors on August 31, the offer will close on September 5.
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Of the total issue, 10.26 lakh shares are reserved for the market maker. Hence, the net issue would be of 58.14 lakh equity shares
Half of the net issue size is reserved for qualified institutional buyers (QIB), 15 percent for high networth individuals and the remaining 35 percent for retail investors. Further, up to 60 percent of the QIB portion is reserved for anchor investors.
The Chennai-headquartered visual effects studio will utilise net fresh issue proceeds for setup of studio or facility at Hyderabad and Salem with amount up to Rs 21.36 crore, and add infrastructure to further strengthen the existing facilities or offices at Chennai and Pune at a cost of Rs 19.6 crore.
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Further, the company will also invest in subsidiaries for expansion of workspace by acquiring new office space at London and strengthen the existing facilities or offices at Vancouver with amount up to Rs 4.65 crore. The remaining funds will be utilised for general corporate purposes and issue expenses.
Apart from visual effects (VFX) studio at Chennai, Basilic Fly Studio also operates in Canada and UK via subsidiaries which specialise in creating visual experiences.
The company also has direct partnerships with diverse production houses, as well as collaborated with prominent VFX companies and studios through sub-contracting arrangements. It has generated major revenue from VFX companies and studios, with direct business contributing 10.4 percent to the topline and sub-contracting segment 89.6 percent to the revenue.
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It has executed several projects in movies in the past including 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 has recorded profit at Rs 26.44 crore for the year ended March FY23, significantly higher compared to Rs 0.79 crore in previous year. In the same period, revenue from operations surged to Rs 70.2 crore, from Rs 23.87 crore.
The company will list its equity shares on the Emerge Platform of the NSE.
GYR Capital Advisors is the merchant banker to the issue, while Purva Sharegistry (India) is the registrar to the issue.
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