Brainbees Solutions Ltd, the company behind the popular FirstCry brand, made a strong entrance into the stock market on Tuesday. The FirstCry shares were listed at ₹651 apiece on the NSE, marking a 40% premium over the issue price of ₹465 per share.
On the BSE, the shares debuted at ₹625, reflecting a 34.41% premium. This robust start was in line with market expectations, driven by a strong performance in the grey market leading up to the listing.
The IPO of Brainbees Solutions, which opened for subscription from August 6 to August 8, raised ₹4,193.73 crore at the upper end of its price band, which was set at ₹440 to ₹465 per share.
The IPO included a fresh issue of 3.58 crore equity shares worth ₹1,666 crore and an offer for sale of 5.44 crore shares, totaling ₹2,527.73 crore. The strong demand for the IPO was evident, as it was subscribed 12.22 times, with the retail category booked 2.31 times, the Qualified Institutional Buyers (QIBs) category subscribed 19.30 times, and the Non-Institutional Investors (NIIs) category at 4.68 times.
Market observers had predicted a strong debut for FirstCry shares, with the GMP signaling a likely increase of ₹80, or about 17%, over the upper price band of the IPO. This anticipation translated into reality as the shares exceeded these expectations upon listing.
FirstCry’s successful listing underscores the growing investor confidence in the company, which has established itself as India’s largest multi-channel retail platform for mothers’, babies’, and kids’ products. Despite reporting a net loss of ₹321.5 crore in FY24, Brainbees Solutions managed to draw significant investor interest, likely due to its strong market position and growth potential in both domestic and select international markets.
The company’s net sales for FY24 stood at ₹6,480.9 crore, with an EBITDA of ₹70.5 crore. These figures reflect the scale of operations and the company’s ability to generate substantial revenue, even as it continues to invest heavily in expansion and product offerings. The IPO proceeds are expected to further bolster Brainbees Solutions’ efforts to enhance its market presence and improve operational efficiencies.
Kotak Mahindra Capital, Morgan Stanley India Company, BofA Securities India, JM Financial, and Avendus Capital were the book-running lead managers for the IPO, while Link Intime India Private Ltd served as the IPO registrar. The success of the IPO also highlights the role of these financial institutions in navigating the market complexities and ensuring a favorable outcome for both the company and its investors.
The listing comes at a time when the Indian stock market is witnessing a flurry of IPO activity, with investors showing a keen interest in new and emerging companies. FirstCry’s strong market debut adds to the momentum and is likely to encourage other companies to consider going public.
The robust performance of FirstCry shares on their first day of trading reflects the confidence that investors have in the company’s business model and growth prospects. As Brainbees Solutions continues to expand its footprint in the retail sector, the positive reception of its IPO is a testament to its potential in the eyes of the market.
Investors and market watchers will now be closely monitoring FirstCry’s performance in the coming months, particularly as the company looks to leverage the funds raised from the IPO to fuel its growth ambitions. The successful listing has set a strong foundation for Brainbees Solutions as it embarks on its journey as a publicly traded company, with the potential for further gains as it continues to capture a larger share of the retail market.
