Basilic Fly Studio IPO GMP (Grey Market Premium)

Basilic Fly Studio IPO worth ₹66.35 crore comprises of a fresh issue and an offer for sale (OFS) component in the IPO from promoters and early shareholders. The price band has been fixed in the range of ₹92 to ₹97 per share and the final price will be discovered in this band via book building. The fresh issue portion of the IPO entails the issue of 68.40 lakh shares which at the upper end of the price band at ₹97 is worth ₹60.53 crore. The offer for sale (OFS) portion of the IPO entails the issue of 6 lakh shares which at the upper end of the price band at ₹97 is worth ₹5.82 crore. As a result, the total IPO of Basilic Fly Studio Ltd comprises the issue of 68.40 lakh shares, which at the upper end of the price of ₹97 per share aggregates to a total issue size of ₹66.35 crore.

How to apply for the Basilic Fly Studio IPO

The stock of Basilic Fly Studio IPO has a face value of ₹10 and bidders can only bid in minimum lot size of 1,200 share each, entailing a minimum investment of ₹116,400 in the IPO at the upper end of the price band of ₹97 per share. That is also the maximum that a retail investor can bid in the IPO. HNIs, NIIs can bid for minimum of 2 lots of 2,400 shares entailing an investment of ₹232,800. The table below captures the lot sizes permissible.

As per the terms of the offer, 50% of the net offer is reserved for the qualified institutional buyers (QIBs), 15% of the offer is reserved for the HNI / NII investors and the balance 35% is reserved for the retail investors. It is a Book Built issue with the price band and the final price will be discovered through book building process. It is captured in the table below.

Like in every SME IPO, the IPO of Basilic Fly Studio Ltd also has a market maker. The Market maker typically provides buy and sell quotes post listing to ensure liquidity and low basis risk in the stock. In this case, the makers will be Kantilal Chhaganlal Securities Ltd, who will act as the market maker for the SME IPO of Basilic Fly Studio Ltd. The company has set aside 10,26,000 shares for the market maker, Share India Securities Ltd.

The issue opens for subscription on 01st September 2023 and closes 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 also 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.

About the Basilic Fly Studio IPO GMP

The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Basilic Fly Studio Ltd, we already have GMP data for the last 4 days, which should give a reasonable picture of the likely listing.

There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be in negative, which means the stock would list at a discount to the issue price.

There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.

How has the GMP panned out in last few days

GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Basilic Fly Studio IPO for which the data is available.

In the above case, the GMP trend shows that the grey market premium has opened at around ₹160, and up by ₹230. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription on 01st September 2023 and also watch the progress, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Basilic Fly Studio Ltd has shown good traction in the grey market.

If you consider the upper end of band price of the IPO of Basilic Fly Studio Ltd at ₹97, then the likely listing price is being signalled at around ₹242 per share as per the GMP indicator on 28th August 2023. This is dynamic and keeps changing. One data point to track will be the subscription update on the stock as that would chart the GMP course.

The GMP of ₹145 on the upper end of the book built IPO price of ₹97 indicates a listing premium of a healthy 149.48% for Basilic Fly Studio Ltd over the listing price. That pre-supposes a listing price of approximately ₹242 per share, when Basilic Fly Studio Ltd lists on 13th September 2023. Of course, these are approximations, so you must keep a margin of safety. One needs to observe the trend of GMP closely as that gives the best hints on listing status. Look at the time series trend than on numbers.

Brief on Basilic Fly Studio Ltd

Basilic Fly Studio Ltd is one of India’s foremost players in visual effects (VFX) since its incorporation in the year 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 (short for visual effects) 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. There are many more to talk about here.

When we talk of VFX, there are several product and service subsets. Here is a quick view on 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 deep into dark forests or rolling tundra. Basilic Fly also does Composting, which puts 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 fresh issue portion will be used to fund expansion and for capitalizing its subsidiaries, including its Vancouver office. The issue will be lead managed by GYR Capital Advisors Private Ltd while Purva Share Registry India Private Ltd will be the registrars to the SME IPO of Basilic Fly Studio Ltd.