Recode Studios IPO Review – Apply or Avoid?

Recode Studio, established in 2021, is an Indian beauty and personal care brand that specialises in strong branding, high-quality product sourcing, and nationwide distribution across India. 

Investors have an amazing chance to invest in an IPO worth ₹45 crores along with a fresh issue of ₹39.55 crores and an offer for sale up to 3,19,200 equity shares with a face value of ₹10 each. 

Strengths 

• The Company has a seamless Omnichannel presence, where they sell their products on both online and offline channels, including Company-Owned Company-Operated (“COCO”) stores, and franchisee-owned franchisee-operated (“FOFO”) stores.
• As of March 2026, the firm runs a total of 22 stores across 12 states in India. In which 3 stores are COCO stores, and 9 stores are FOCO stores. 
• Recode Studios offers more than 350 products across the beauty and personal care segment, which includes foundation, compact, concealer, primer, contour, blush, highlighter, eyeliner, mascara, kajal, eyeshadow, eyebrow pencils, lipsticks, lip gloss, lip crayons, lip oil, and lip liners.
• As of May 4, the company has developed a strong online presence by achieving around 4,77,000 followers on its official Instagram page. 
• Its products are sold through various 3rd party and E-commerce websites, such as Amazon, Flipkart, Myntra, and Nykaa. 

Weaknesses

• The company does not have its own manufacturing facilities. Meaning, the company sources its products from third-party manufacturers, which leads to operational, regulatory, and business risks. 
• The firm is exposed to continuously changing preferences in beauty, cosmetics, and personal care segments. Failure to meet the changing preferences can impact the business operations and financial conditions.
• Around 70% of its revenue comes from the Face Make-up segment. Any delay or decline in the demand for those products can negatively affect the overall business.
• Recode Studios’ entire business is concentrated in Ludhiana, Punjab, which exposes it to regional and regulatory risks that can badly impact the business operations and growth.

Promoters holding, if any

• DHEERAJ BANSAL, age 28 years, is the Chairman and Managing Director of the company. He holds 7,43,512 Equity shares, representing 9.13% of pre-issue Equity capital.
• RAHUL SACHDEVA, age 39 years, is the Chief Operating Officer of the company. He holds 8,93,464 Equity shares, representing 10.97% of pre-issue Equity capital.
• SHELLY BANSAL, age 47 years, is the Whole Time Director of the company. She holds 5,46,700 Equity shares, representing 6.72% of pre-issue Equity capital.
• PREETI TREHAN, age 47 years, is the Promoter of the company. She holds 12,90,212 Equity shares, representing 15.85% of pre-issue Equity capital.
• SHALINI TREHAN, age 49 years, is the Non-Executive Director of the company. She holds 12,90,993 equity shares, representing 15.86% of pre-issue Equity capital.
• KARAN BANSAL, age 25 years, is the CEO & Whole Time Director of the company. He holds 4,84,220 equity shares, representing 5.95% of pre-issue Equity capital

Peer comparison

Industry P/E

The industry P/E ratio ranges from a low of 16.95 to a high of 1151.91, with an average of 584.43.

Fund Expansion

• From the IPO money, the ₹5.74 crores would be used for the Funding of Capital expenditure towards the setup of a new Warehouse Facility at Ludhiana, Punjab. 

• ₹5.41 crore would be utilised for the Marketing and advertising expenses toward enhancing the awareness and visibility of our brand.

• ₹21.00 Crore will be allocated for the Utilization towards Working Capital Requirements and general corporate purposes. 

Conclusion- May Apply for Medium to Long Term 

Recode Studio, founded in 2021, is an Indian beauty and personal care brand. It focuses on strong branding, quality products, and selling across India. Further, the company offers a wide range of products, including makeup, skincare, body care, and beauty tools. 

It has around 350 products across categories like face, eyes, and lips, along with lip makeup and everyday face and body essentials. 

My Verdict: Investing in such sectors allows you to keep in profit, while others are not due to cyclical sectors. However, the Recode Studio IPO is opening on 5th May. Long-term investment should be with proper research and checking of fundamentals.   

Please Note: 

Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.