Brainbees Solutions (Firstcry) Limited IPO Subscribed 0.11x on Day 1

Brainbees Solutions (Firstcry) Limited’s IPO opened for subscription on August 6, 2024, and will close on August 8, 2024. Firstcry IPO is a book-built issue of ₹4,193.73 crore. The issue is a combination of a fresh issue of 35,827,957 shares aggregating to ₹1,666 crore and an offer for sale of 54,359,733 shares of ₹2 aggregating to ₹2,527.73 crore. The IPO price band is set at ₹440 to ₹465 per share.

The company would use the net proceeds towards the funding of the following objects:

• To set up new modern stores under the “BabyHug” brand and set up a warehouse in India.
• Lease payments for existing identified modern stores owned and operated by the company in India.
• Investment in the subsidiary, Digital Age, for setting up new modern stores under the FirstCry brand and other home brands, and lease payments for existing identified modern stores in India.
• Investment in the subsidiary, FirstCry Trading, for overseas expansion by setting up new modern stores and warehouses in Saudi Arabia (KSA).
• Investment in the subsidiary, Globalbees Brands, for acquiring additional stakes in step-down subsidiaries.
• Sales and marketing initiatives.
• Technology and data science costs, including cloud and server hosting.
• To fund inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

Day Wise Subscription

On the first day of subscription, August 6, 2024, the IPO was subscribed to 0.11x. QIBs subscribed 0.00x, NIIs subscribed 0.08x, and retail investors subscribed 0.46x.

Grey Market Premium

Brainbees Solutions Limited IPO’s last GMP was ₹45. With a price band of ₹465.00, the estimated listing price of the Brainbees Solutions IPO is ₹510 (cap price + today’s GMP). The expected percentage gain/loss per share is 9.68%.

About Brainbees Solutions Limited

Brainbees Solutions Limited provides products for mothers, babies, and kids through its platform, FirstCry. The company operates through its online platform, company-owned modern stores, franchisee-owned modern stores, and general trade retail distribution. Internationally, the company has expanded into the UAE and KSA, establishing a presence in 2019 and 2022, respectively. They aim to apply their successful India strategy in these markets.

Over the past three financial years, the company’s revenue from operations has increased from ₹24,012.88 million in FY 2022 to ₹64,808.56 million in FY 2024, according to their restated consolidated financial statements.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.