Brainbees Solutions (Firstcry) IPO Sees 0.30x Subscription on Day 2

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

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

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

• To establish new modern stores under the “BabyHug” brand and set 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.
• To Invest 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, to acquire additional stakes in step-down subsidiaries.
• For sales and marketing initiatives.
• For 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 second day of subscription, August 7, 2024, the IPO was subscribed to 0.30x. QIBs subscribed 0.03x, NIIs subscribed 0.30x, and retail investors subscribed 1.06x.
• 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 0.48x.

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 offers products for mothers, babies, and kids through its FirstCry platform. The company operates via its online platform, company-owned modern stores, franchisee-owned modern stores, and general trade retail distribution. Internationally, Brainbees expanded into the UAE and KSA, establishing a presence in 2019 and 2022, respectively, 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.