The proposed acquisition will be executed in two phases, combining a secondary purchase of shares from the existing promoters and a primary capital infusion into the business
Recode Studios has signed a strategic investment term sheet to acquire up to a 51 per cent equity stake in Aflairza Professionals, the company behind Aflairza, a premium luxury beauty and cosmetics brand.
The proposed acquisition will be executed in two phases, combining a secondary purchase of shares from the existing promoters and a primary capital infusion into the business. Through this strategic investment, Recode aims to accelerate Aflairza’s growth by strengthening manufacturing capabilities, expanding its portfolio of premium luxury beauty and personal care products. The company will enhance its distribution networks and increase the brand’s presence across online and offline retail channels, it said in an exchange filing.
Under the proposed transaction, Recode will initially acquire a 33 per cent stake in the first phase for an aggregate consideration of Rs 8.32 crore, with equal allocation between promoter share purchase and fresh capital into the company.
“Aflairza has built a strong portfolio of innovative beauty products, backed by a premium luxury brand positioning and a differentiated product offering. The brand’s ability to command superior value realization reflects its growing consumer acceptance and reinforces its position in the premium beauty segment. This acquisition is well aligned with our strategic focus on expanding our presence in the Beauty and Personal Care (BPC) category through premium and aspirational brands,” stated Dheeraj Bansal, Chairman and Managing Director, Recode Studios.
Following the achievement of agreed milestones, Recode intends to increase its shareholding to 51 per cent through the second phase, thereby becoming the majority shareholder. As part of the proposed transaction, the existing promoters will continue to lead the company’s day-to-day operations, ensuring continuity in leadership while benefiting from Recode’s strategic guidance, financial resources and growth initiatives, the statement added.
Recode will also nominate a representative to the Board to support governance, strengthen the brand’s premium positioning, and drive long-term value creation.
