Firstcry IPO Subscription Hits 12.22x on Day 3

Brainbees Solutions (Firstcry) Limited’s IPO opened for subscription on August 6, 2024, and will close on August 8, 2024. The IPO allotment is expected to be finalised on August 9, 2024. The shares are expected to be listed on August 13, 2024, on both the NSE and BSE.

The Firstcry IPO is a book-built issue valued at ₹4,193.73 crore. It includes a fresh issue of 35,827,957 shares worth ₹1,666 crore and an offer for sale of 54,359,733 shares totalling ₹2,527.73 crore. The IPO price range is set between ₹440 and ₹465 per share. The minimum lot size is 32 shares, with a minimum retail investment of ₹14,880.

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

• For establishing new modern stores under the “BabyHug” brand and also setting up a warehouse in India.
• To cover lease payments for existing identified modern stores owned and operated by the company in India.
• To invest in the subsidiary, Digital Age, to set up new modern stores under the FirstCry brand and other home brands, and lease payments for existing identified modern stores in India.
• For investing in the subsidiary, FirstCry Trading, for international expansion by establishing new modern stores and warehouses in Saudi Arabia (KSA).
• To invest in the subsidiary, Globalbees Brands, and acquire additional stakes in step-down subsidiaries.
• For sales and marketing initiatives.
• For technology and data science costs, including cloud and server hosting.
• For funding inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

Day Wise Subscription

• On Day 3 of subscription, August 8, 2024, the IPO was subscribed to 12.22x. QIBs subscribed 19.30x, NIIs 4.68x, and retail investors subscribed 2.31x.
• On Day 2 of subscription, August 7, 2024, the IPO was subscribed to 0.30x. QIBs subscribed 0.03x, NIIs subscribed 0.30x, and retail investors subscribed 1.08x.
• On Day 1 of subscription, August 6, 2024, the IPO was subscribed to 0.11x. QIBs subscribed 0.00x, NIIs subscribed 0.08x, and retail investors subscribed 0.48x.

Grey Market Premium

Brainbees Solutions Limited IPO’s last GMP was ₹10. With a price band of ₹465.00, the estimated listing price of the Brainbees Solutions IPO is ₹475 (cap price + today’s GMP). The expected percentage gain/loss per share is 2.15%.

About Brainbees Solutions Limited

Brainbees Solutions Limited provides products for babies, kids and mothers via its FirstCry platform. The company operates through its company-owned modern stores, online platform, franchisee-owned modern stores, and general trade retail distribution. Internationally, Brainbees expanded into KSA and the UAE, with plans to replicate its successful India strategy in these markets.

According to their restated consolidated financial statements, the company’s revenue from operations has grown significantly over the past three financial years, increasing from ₹24,012.88 million in FY 2022 to ₹64,808.56 million in FY 2024.

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.