Beauty Stock Surges 8% After Signing Deal to Acquire 51% Stake in Aflairza
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Recode Studios has signed a strategic Investment Term Sheet to acquire up to a 51 per cent equity stake in Aflairza Professionals Private Limited in two phases, with an initial 33 per cent stake acquisition for an aggregate consideration of Rs 8.32 crore.
✨ Key Takeaways
On Wednesday, Indian equity benchmarks traded higher, with the benchmark Nifty 50 index gaining 0.10 per cent to 24,077.25. Amid the broader market strength, shares of Recode Studios Limited traded at Rs 195.90, up 8.47 per cent from the previous close, after the company announced that it had signed a strategic Investment Term Sheet to acquire up to a 51 per cent equity stake in Aflairza Professionals Private Limited, the company behind the AFLAIRZA premium beauty and coSMEtics brand.
Phased Acquisition to Secure Majority Stake
Recode Studios Limited informed the exchanges that the proposed acquisition will be carried out in two phases through a combination of secondary share purchase from existing promoters and a primary capital infusion into the company.
In the first phase, Recode will acquire a 33 per cent stake in Aflairza for an aggregate consideration of Rs 8.32 crore, with the investment equally split between the purchase of promoter-held shares and fresh capital infusion into the business. Upon achieving agreed milestones, the company plans to increase its holding to 51 per cent in the second phase, making Aflairza its subsidiary.
Strategic Expansion in Beauty and Personal Care
The company said the acquisition is aimed at accelerating Aflairza's growth by strengthening manufacturing capabilities, expanding its portfolio of premium beauty and personal care products, enhancing distribution and increasing the brand's presence across online and offline channels.
As part of the transaction, Recode Studios will nominate a representative to Aflairza's Board to strengthen governance and support the company's long-term growth strategy. The existing promoters will continue to manage the day-to-day operations of the business.
About Aflairza
Aflairza Professionals Private Limited is an Ahmedabad-based beauty and cosmetics company founded by Sagar Urvish Gandhi and Deep Parekh. The company markets and distributes professional-grade makeup and personal care products under the AFLAIRZA brand.
The brand offers a portfolio of premium beauty products developed using Korean formulations and serves customers through multiple online and offline distribution channels across India.
Management Commentary
Commenting on the development, Dheeraj Bansal, Chairman and Managing Director of Recode Studios Limited, said the proposed investment marks another milestone in the company's long-term strategy of partnering with high-potential consumer brands.
He added that Aflairza has established a differentiated premium product portfolio, and the acquisition aligns with Recode's strategy of expanding its presence in the beauty and personal care segment through premium and aspirational brands. Bansal said the company aims to strengthen Aflairza's market presence, broaden its product portfolio and create long-term value alongside the founders.
About Recode Studios Limited
Recode Studios Limited is an Indian beauty and personal care company offering more than 350 SKUs across cosmetics, skincare and personal care categories. The company follows an asset-light business model, focusing on product development, branding, marketing and distribution.
It has established an omnichannel presence through retail outlets, distributors and e-commerce platforms while continuing to expand its footprint in India's beauty and personal care market.
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Disclaimer: The article is for informational purposes only and not investment advice.