Synopsis: Recode Studios Limited has signed a strategic investment term sheet to acquire up to a 51 percent stake in premium beauty and cosmetics brand Aflairza. The transaction will be completed in two phases, with Recode initially acquiring a 33 percent stake for Rs. 8.32 crore, as the company looks to strengthen its presence in India’s premium beauty and personal care market.
Shares of Recode Studios Limited are likely to remain in focus after the company signed a strategic investment term sheet to acquire up to a 51 percent equity stake in Aflairza Professionals Private Limited, the company behind premium beauty and cosmetics brand AFLAIRZA.
Recode Studios Limited has a total market capitalization of approximately Rs. 208 crore. The company’s shares were trading at Rs. 195 apiece on the stock exchange, up by 7.97 percent. The stock has gained 1.56 percent over the last five trading sessions, while it has declined 4.22 percent over the last month. The stock touched a 52-week high of Rs. 232.90 and a 52-week low of Rs. 171.
According to the company’s exchange filing, the proposed acquisition will be executed in two phases, combining the purchase of shares from Aflairza’s existing promoters with a fresh capital infusion into the business. Recode plans to use the strategic investment to strengthen Aflairza’s manufacturing capabilities, expand its premium beauty and personal care portfolio, enhance distribution and increase its presence across online and offline retail channels.
Under Phase I of the proposed transaction, Recode Studios will acquire a 33 percent stake for an aggregate consideration of Rs. 8.32 crore. The investment will be equally divided between the purchase of shares from existing promoters and fresh capital infusion into Aflairza. This means approximately Rs. 4.16 crore will go towards the secondary share purchase, while another Rs. 4.16 crore will be infused directly into the company to support its growth.
Following the achievement of agreed milestones, Recode intends to increase its shareholding from 33 percent to 51 percent under Phase II, thereby becoming the majority shareholder in Aflairza. The consideration and other financial terms for the second phase have not been disclosed in the information provided.
The acquisition could help Recode Studios expand beyond its existing affordable premium positioning into the higher-value premium and luxury beauty segment. Aflairza offers professional-grade beauty and personal care products developed using advanced Korean formulations, giving Recode access to a differentiated product portfolio and a new consumer segment.
Recode also plans to leverage its existing product development capabilities, distribution network, industry expertise and operational infrastructure to accelerate Aflairza’s growth. The existing promoters of Aflairza will continue to manage the company’s day-to-day operations, while Recode will nominate a representative to its board, allowing the brand to retain management continuity while gaining access to additional capital and strategic support.
The transaction could also create potential distribution and portfolio synergies between the two beauty businesses. Recode currently offers more than 350 SKUs across cosmetics, skincare and personal care categories and operates through an omnichannel model covering retail stores, e-commerce platforms and distribution networks. Integrating Aflairza’s premium product portfolio with this network could help expand the acquired brand’s reach across both online and offline channels.
India’s beauty and personal care market is witnessing increasing demand for premium, aspirational and specialised products as consumers spend more on skincare, cosmetics and personal grooming. Brands with differentiated formulations, strong digital visibility and omnichannel distribution are increasingly competing for a larger share of this growing market. The proposed acquisition allows Recode to participate more directly in the premium end of the beauty segment while diversifying its brand portfolio.
For investors, the proposed acquisition is significant as it marks Recode Studios’ strategic move towards building a broader portfolio of beauty and personal care brands. The initial Rs. 8.32 crore investment provides the company with a meaningful 33 percent stake, while the planned increase to 51 percent could eventually give Recode majority ownership. The long-term impact will depend on the successful completion of both phases, achievement of agreed milestones and Recode’s ability to scale Aflairza through its existing distribution and operational capabilities.
Incorporated in 2021, Recode Studios Limited is an Indian beauty and personal care company operating under the Recode brand. The company offers more than 350 SKUs across cosmetics, skincare and personal care categories and follows an asset-light business model focused on product innovation, branding, marketing and distribution while leveraging third-party manufacturing. It serves customers across India through retail outlets, e-commerce platforms and distribution channels.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses arising from decisions based on this article. Please consult your investment advisor before investing.
