Basilic Fly Studio Limited IPO

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i. Basilic Fly Studio is a visual effects (VFX) studio that provides high-quality and cost-effective VFX solutions for various projects, including movies, TV & net series, and commercials.

ii. The company was founded in 2012 and has grown to become one of India’s leading VFX powerhouses, with offices in Chennai, Pune, London, and Vancouver.

iii. The company’s business model is based on the following aspects:

a. Offering a full range of VFX services, such as supervision, FX, creatures, environments, compositing, matchmove, paint and prep, and rotoscopy.

b. Leveraging the talent and cost advantages of India, while providing local points of contact for clients in the US and the UK.

c. Working with a team of experienced and skilled artists, who use the latest cutting-edge technology and software to create captivating visual experiences.

d. Handling any kind of project, either small or large, with faster turnaround and scalability3.

e. Pioneering the art and science of visual effects with unmatched creativity, technical prowess, and a relentless pursuit of excellence.

Services Offered by the Company

  1. Final Compositing and Rotoscopy,
  2. Camera/ Body Tracking and Rotomation/ Object Tracking,
  3. Paint And Preparation,
  4. Previs or Previsualization,
  5. Computer Graphics, and
  6. Onset Supervision.

Competitive Strengths

i. Well equipped with advance technology
ii. Experienced Promoters and Technically Sound Operation Team

Objects of the Basilic Fly Studio Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Expenditure for setup of Studio/Facility at Hyderabad and Salem. ii. Expenditure for adding infrastructure to further strengthen the existing facilities/offices of the company located in Chennai and Pune. iii. Making investments through equity in the subsidiaries for expansion of workspace by acquiring new office space located in London and strengthening the existing facilities/offices located in Vancouver. iv. General Corporate Purposes and Issue Expenses.

Basilic Fly Studio Limited IPO Details:

Open Date: Sep 01 2023
Close Date: Sep 05 2023
Total Shares: 6,840,000
Issue Type: Book Built Issue IPO
Issue Size: 66.35 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 92 to ₹97 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 13 2023

Promoters And Management:

Mr. Balakrishnan, aged 37 years, is the Promoter and Managing Director of the Company. He holds Master’s degree in Electronic Media from Anna University. He was originally appointed on the Board on January 28, 2016 as the Managing Director of the Company. He has an experience of more than 13 years in this Industry. He has worked directly with academy award winning supervisors and Oscar nominated directors on various projects. He is the key driver of the growth of the Company at present level. His abilities have been instrumental in leading the business of the Company. Ms. Yogalakshmi S, aged 33 years, is the Promoter and Whole Time Director of the Company. She holds a degree of Bachelor of Engineering in Electronics and Communication Engineering from Anna University. She worked for a US based IT company before she became part of Basilic Fly Studio. She later on joined us in the partnership firm incorporated in the year 2013 which was subsequently dissolved in 2019. She has vast knowledge and experience of more than 11 years in VFX Industry. She is responsible for the managing and supervising operations. She has played a key role in growth and development of the Company. Mr. Prabhakar D, aged 35 years, is the Whole Time Director of the Company. He has completed Diploma in Multimedia from Hindustan Institute of Technical Training, Chennai. He has an experience of over 14 years in VFX Industry and has worked for several renowned films.

Financials of Basilic Fly Studio Limited IPO:

Pariculares ( In Lakhs )
Revenue from Operations 1,727 2,388 7,023
Other Income 4 12.9 28
Total Revenue 1,731 2,401 7,051
Employee Benefits Expense 730 1,249 1,749
Other Direct Expenses 818 971 1,534
Other Expenses 68 28 101
EBITDA 115 153 3,667
Depreciation & Amortisation 44 28 56
Finance Cost 18 9 69
EBIT 71 125 3,611
OPM (%) 6.66% 6.37% 52.01%
PBT 53 116 3543
Tax 19 37 899
PAT 34 79 2644
NPM (%) 1.94% 3.31% 37.50%
No.of Shares 232.4 232.4 232.4
EPS 0.14 0.34 11.37

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Basilic Fly Studio Limited 70 26 11.37 8.52 97 255
Prime Focus Limited 4,644 194 4.92 21.9 91 2,729
Phantom Digital Effects Limited 58 16 13.92 40.3 561 653
* All the data is as per FY23.

Recommendation on Basilic Fly Studio Limited IPO:

Review and Recommendation of Basilic Fly Studios SME IPO by IZ team is 6/10 1. Basilic Fly Studio is a visual effects (VFX) studio that provides high-quality and cost-effective VFX solutions for various projects, including movies, TV & net series, and commercials. Currently, 100% revenue is coming from Hollywood movies. 2. Company is planning for Rapid scaling of employees from 450 presently to an expected 1200 employees by Fy25 signifies strong growth and increased operational capabilities. The geographical diversification among Chennai, Pune, and future locations like Hyderabad and Salem could offer a strategic advantage. 3. They have around 7% attrition rate relative low to the industry average suggests a stable, satisfied workforce, which is a positive indicator of company culture and operational continuity. 4. They are planning to shift revenue mix from a 90:10 to a 70:30 subcontracting-to-direct project indicates a deliberate move towards higher-margin projects. This could enhance profitability in the long term. Currently, they get 90% VFS project via subcontracting wherein margin is less. 5. They want to become a preferred vendor for most Hollywood studios which will have competitive advantage that can lend credibility and attract further partnerships. 6. They have 45-60 days billing cycle, combined with 30-45 days of working capital, provides a reasonable cushion for the firm, but this is an area where improvements could add value. 7. As per management, The AI initiatives, aimed at efficiency rather than the replacement of existing work, could serve as a unique selling point during the Pre-IPO phase, showing the company's commitment to innovation. 8. The company’s aggressive expansion plans into different geographies and sectors make it a potentially high-growth investment. 9. The company has shown excellent growth from Fy21 to FY23 wherein the revenue has increased from INR 17 Cr to INR 70 Cr. And, company is aspecting 50% growth in next 2-3 years. They have around 35% NPM in FY23 and management is confident of achieving this margin. Based on the newly provided assumptions of a 30% Net Profit Margin (NPM) and a 30% conservative revenue growth ( though management has said 50-80%) , the financial outlook for FY24 appears promising for Basilic. Under these conditions, the company is projected to achieve a revenue of approximately INR 100 Crore and a Profit After Tax (PAT) of INR 35 Crore. Given a Price-to-Earnings (P/E) multiple of 25, the market capitalization (Mcap) for Basilic would stand at around INR 875 Crore. With 2.32 Crore outstanding shares, this would translate to a per-share price of approximately INR 377. Comparing this projected per-share price with the initial public offering (IPO) price of INR 97 per share, it is evident that there is significant upside potential for investors. This makes Basilic an attractive investment opportunity, provided the company is able to meet its growth and profitability targets. Conclusion Basilic seems poised for aggressive growth, with plans for geographical expansion and a focus on more lucrative direct contracts. The company's strong fundamentals, such as a low attrition rate and promising financial guidance, make it an attractive option for Pre-IPO investors. However, the high growth targets and the evolving nature of the revenue streams mean that prospective investors should carry out a comprehensive due diligence process

Lead Manager of Basilic Fly Studio Limited IPO:


Registrar of Basilic Fly Studio Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Basilic Fly Studio Limited Tower A, KRC Commerzone, Mount Poonamallee Road Porur, Chennai - 600116 Phone: + 91 94164 22201 Email: Website

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