The much-talked-about Recode Studios IPO is closing today on the BSE SME platform, and the response from investors has been nothing short of remarkable. The Ludhiana-based cosmetics company, which became a household name after its bittersweet appearance on Shark Tank India, is on track to become one of the most oversubscribed SME issues of the quarter.
By the end of Day 2, the ₹44.59 crore issue was already subscribed over 33 times overall. The retail category was subscribed 40.56 times while the HNI portion saw 56.41 times subscription. The "Big HNI" segment alone was booked 65.97 times, showing that wealthy investors are betting big on this one.
From Shark Tank Rejection to IPO Stardom
Most readers will remember Recode from that controversial Shark Tank pitch where founders Dheeraj Bansal and Rahul Sachdeva were turned down by Namita Thapar and Aman Gupta. The sharks openly mentioned their friendship with Sugar Cosmetics' Vineeta Singh as a reason. What followed was a social media storm, with viewers calling out what many felt was "cartelisation" on the panel.
But the founders did something smart — they used the backlash as free marketing. A "Shark Tank Sale" with discounts up to 75% turned curious viewers into actual customers. They also took Aman Gupta's criticism about packaging seriously and revamped their entire 350+ SKU range with a holographic luxury look.
The Numbers Tell the Real Story
What makes Recode interesting is not just the drama but the actual business performance. The company's profit jumped from just ₹0.27 crore in FY24 to ₹3.30 crore in FY25. In just nine months of FY26, it has already clocked ₹9.06 crore in profit on a topline of ₹57.45 crore. EBITDA margins have moved up from 4.52% to over 23% — a sign that the asset-light model is working.
Recode does not own factories. Instead, it sources from contract manufacturers in Germany, Taiwan and Thailand, which keeps costs 30-35% lower than premium global brands. Distribution happens through 3 company-owned and 21 franchise stores, plus online platforms like Nykaa and Amazon, where nearly 70% of sales come from.
Pricing and Listing Expectations
The IPO is priced at ₹150-158 per share with a lot size of 800 shares. The grey market premium has climbed steadily — from ₹11 at the start to ₹44 by Day 2 close. This suggests a possible listing price of around ₹202, a gain of nearly 28%. Anchor investors, including Fortune Hands Growth Fund, have already put in ₹12.7 crore at ₹158.
Some Caution Though
Investors should remember that being fully dependent on overseas manufacturers is risky. Competition from Sugar, Mamaearth and global brands is intense. The "Shark Tank story" will also fade with time, and Recode will need to stand on its own.
Listing is expected on Tuesday, May 12, 2026. If the GMP holds, retail investors who got allotment may walk away smiling.
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