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PremiumBrainbees Solutions IPO Day 2 Highlights: The initial public offering (IPO) of Brainbees Solutions Ltd, which operates under the FirstCry brand, opened for subscription on Tuesday, August 6, and will close on Thursday, August 8. Brainbees Solutions IPO price band has been set at ₹440 to ₹465 per share.
The ₹4,193.73 crore FirstCry IPO is a combination of a fresh issue of 3.58 crore equity shares aggregating ₹1,666.00 crore and an offer for sale (OFS) component of 5.44 crore shares totalling ₹2,527.73 crore. The IPO allotment is expected to be finalized on August 9, and the IPO listing date is August 13.
Catch Brainbees Solutions IPO live blog for the latest updates.
FirstCry IPO was fully subscribed 30 per cent by the end of its second day of issue. The portion reserved for QIBs was subscribed at 0.03 per cent, while the one for retail investors was subscribed 1.06 times. NIIs subscribed 0.03 per cent to the issue on the first day, according to BSE data. The portion reserved for employees was subscribed the highest at 3.44 times. The mainboard IPO received 1,47,43,616 share applications against 4,96,39,004 shares offered on Wednesday.
Brainbees Solutions (Firstcry) IPO offers 90,194,432 shares. 27,036,953 (29.98 per cent) to QIB, 13,518,476 (14.99 per cent) to NII, 9,012,317 (9.99 per cent) to RII, 71,258 (0.08 per cent) to employees and 40,555,428 (44.96 per cent) to Anchor investors. 281,634 RIIs will receive minimum 32 shares and 10,058 (sNII) and 20,116 (bNII) will receive minimum 448 shares. (in case of oversubscription)
The company has established deposit investments and plans to keep doing so in the event that it has extra money. A part of the net proceeds may be temporarily placed in fixed deposits if they are unable to use the entire amount for business operations expansion. The firm has lost money in the past and could lose more in the future, which might have a negative effect on both their business and the equity shares' value.
The demand for the products sold on the company's multichannel retailing platform may decline if they are unable to recognise and effectively respond to changing customer preferences, trends, and spending patterns for mothers', babies', and kids' products. This could have a negative impact on their business, operating results, financial condition, and cash flows.
Most domestic brokerage firms have recommended subscribing to the IPO due to the company's strong brand positioning. SBI Securities highlighted that the company is well-positioned to cater to the $120 billion market for child and mother-and-kid care products, noting its pioneering role in multi-channel retailing in India. It recommends a 'Subscribe' rating to the issue for long-term gains.
Brainbees Solutions IPO Day 2 Live Updates: First Cry’s consolidated revenues have grown at a CAGR of 59% during FY21-FY24 to ₹6,481 crore. This growth is driven by organic as well as inorganic efforts, particularly acquisition of Digital Age in May FY22. The company has made marginal EBITDA of 1.1% in FY24 on a consolidated basis after making losses in FY22 and FY23 at operating level.
This is because of its International business. India business is operating positively and has made margins of 9% in FY24. Once more transactions start coming in, company would be able to drive higher operating leverage by maintaining better pricing and control costs, Nirmal Bang said.
Brainbees Solutions IPO Day 2 Live: FirstCry IPO has been subscribed 23% so far. The public issue received bids for 1.15 crore equity shares as against 4.96 crore shares on the offer, according to the NSE data available till 2:00 pm on Wednesday, the second day of the bidding process.
The IPO has been subscribed 87% in the retail category, while the portion reserved for Employees has been subscribed 3.03 times. The Non Institutional Investors (NII) category has been subscribed 19%, while the Qualified Institutional Buyers (QIBs) portion is booked 3% so far.
Brainbees Solutions IPO Day 2 Live: Firstcry has created a niche space in the mothers and early kids age category and has strong brand reminiscence as well. Revenues have grown at a CAGR of 34% during FY22-24 on performa adjusted revenue growth. While India business has been making margins of ~ 9%, its International business continues to bleed at operating level. However, Management is confident of replicating India's success story there as well, said Nirmal Bang
On the backdrop of changing retail and ecommerce dynamics, mother and childcare product market is expected to grow at a CAGR of 13-15% during FY24-29. Firstcry’s shares are available at EV/sales of 3.8x FY24 which is lower as against Nykaa which is trading at 8.4x. Given Firstcry’s leadership position in the niche segment of baby products, we recommend Subscribe to the issue for long term gains, the brokerage firm said.
Brainbees Solutions IPO Day 2 Live Updates: Firstcry IPO GMP today, or grey market premium today, has dropped to ₹25 per share, according to stock market observers. This indicates that the equity shares of Brainbees Solutions are trading at ₹490 apiece in the grey market, a premium of 5.4% to the issue price of ₹465 per share.
Brainbees Solutions IPO Day 2 Live: FirstCry is valued at the FY24 EV/Sales multiple of 3.4x and P/B of 5x on post-issue capital. The company has turned EBITDA positive in FY24 while registering a growth of 15% CAGR over the last 2 years on the revenue front. The company has grown its store count by 50% to 1063 in the last 2 years, breakeven of these stores is expected to contribute to profitability going ahead. The India operation is presently contributing 70% of the total revenue with an EBITDA margin of 8.8% while the international operations are loss-making, so turnaround of this will significantly contribute to profitability going ahead. The company is well placed to cater to the $120 bn market size of the Child & Mother & Kids care products as it is a pioneer in multi-channel retailing in India. We recommend subscribing to the issue for long-term gains, said SBI Securities
Brainbees Solutions IPO Day 2 Live: Here are key risk factors of FirstCry IPO investors should know before investing:
Negative cash flow: The company has had negative cash flows in the past and may continue to have negative cash flows in future.
Customer engagement: If the company fails to acquire new customers or experiences a decline in engagement with the existing customers, the company may face challenges in maintaining the topline which may result in margin pressure.
Negative returns: The company had reported losses in the past and may continue to do so in the future, which will have a negative impact on the return ratios.
Relationship with third-party brands: If the company fails to retain its relationship with the third-party brand or fails to attract new brands in the future, this will significantly impact the revenue of the company.
Brainbees Solutions IPO Day 2 Live: FirstCry has grown from ₹3,597.5 crore to ₹6,480.9 crore over FY22 to FY24 implying a 2-year revenue CAGR of 64.3%. The Adj EBITDA has grown from 2.6% in FY22 to 4.2% in FY24 showcasing incremental profitability of the company. Given that the price to sales multiple at the upper price band of 3.8x is at a much higher discount to more directly related peers (Online + Offline presence) like FSN E-commerce & Honasa, we assign ‘Subscribe’ rating for this IPO, says Deven Choksey Research.
Brainbees Solutions IPO Day 2 Live: FirstCry IPO has been subscribed 17% so far. The public issue received bids for 86.42 lakh equity shares as against 4.96 crore shares on the offer, according to the NSE data available till 12:00 pm on Wednesday, the second day of the bidding process.
The IPO has been subscribed 74% in the retail category, while the portion reserved for Employees has been subscribed 2.72 times. The Non Institutional Investors (NII) category has been subscribed 13% so far, while the Qualified Institutional Buyers (QIBs) are yet to place their bids.
Brainbees Solutions IPO Day 2 Live: FirstCry IPO has been subscribed 16% so far. The public issue received bids for 79.58 lakh equity shares as against 4.96 crore shares on the offer, according to the NSE data available till 11:15 am on Wednesday, the second day of the bidding process.
The IPO has been subscribed 69% in the retail category, while the portion reserved for Employees has been subscribed 2.58 times. The Non Institutional Investors (NII) category has been subscribed 12% so far, while the Qualified Institutional Buyers (QIBs) are yet to place their bids.
Brainbees Solutions IPO Day 2 Live: FirstCry IPO has been subscribed 14% so far. The public issue received bids for 67.30 lakh equity shares as against 4.96 crore shares on the offer, according to the NSE data available till 10:15 am on Wednesday, the second day of the bidding process.
The IPO has been subscribed 58% in the retail category, while the portion reserved for Employees has been subscribed 2.28 times. The Non Institutional Investors (NII) category has been subscribed 10% so far, while the Qualified Institutional Buyers (QIBs) are yet to place their bids.
FirstCry IPO was subscribed 11 per cent by the end of its first day of issue. The portion reserved for QIBs was left unsubscribed, while the one for retail investors was subscribed 0.48 per cent. NIIs subscribed 0.08 per cent to the issue on the first day, according to BSE data. The mainboard IPO received 53,43,360 share applications against 4,96,39,004 shares offered on Tuesday.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd:
‘’The company operates in a highly competitive landscape and relies on third-party manufacturers, suppliers, and brands for its product offerings.
Due to the absence of profitability, a meaningful P/E valuation cannot be determined. Additionally, the lack of comparable listed peers limits comparative analysis.
Consequently, we maintain a neutral stance on the IPO and advise investors to conduct thorough due diligence before making an investment decision.''
Across its platform, the company offers products from third-party Indian brands, global brands, and its home brands. It has created trusted home brands in the Mothers', Babies' and Kids' products categories through deep insights and understanding of the requirements of customers, robust data analytics tools, in-house design and development capabilities and by leveraging the market recognition of the "FirstCry" brand.
As a reflection of FirstCry's strong brand recognition and customer trust, BabyHug, one of FirstCry's home brands, is the largest multi-category Mothers', Babies', and Kids' products brand in India in terms of GMV, for the Financial Year 2024, according to the RedSeer Report. Further, the company leverages its management team's experience in creating and scaling up home brands to help D2C Indian and global brands scale their business in India across direct-to-customer channels and modern stores.
The company's business, financial situation, and operational outcomes might be negatively impacted by the failure of its investments in D2C brands made through its Globalbees Brands platform.
Any delay might have an effect on the operations and profitability of the Net Proceeds, which will be distributed over an extended period of time.
A part of the net proceeds will be used to fund some recently founded companies as well as subsidiaries that have experienced losses. The business cannot guarantee that the investments it makes will increase its profitability or provide the desired outcomes.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd:
‘’Brainbees Solutions, the parent company of FirstCry, is India’s largest online retailer of baby and child care products, boasting srong brand recognition, customer loyalty, and engagement.
The company has demonstrated a scalable business model capable of capturing a significant market share. However, Brainbees has encountered financial challenges, incurring losses for the past three years despite revenue growth. Negative cash flows further underscore these concerns. ‘’
There is a chance that the firm may continue to experience negative net cash flows as it has in the past.
The company intends to use the money from net proceeds to open its new, contemporary stores and warehouses in the Kingdom of Saudi Arabia and India, although it has not yet decided on the precise sites or assets for these endeavours.
The company's intended development plans, which include constructing new, contemporary storefronts and establishing new warehouses, face the danger of unexpected delays and cost overruns.
Brainbees Solutions IPO was subscribed nine per cent so far on the first day of issue. Retail investors subscribed 0.4 per cent and NIIs subscribed 0.5 per cent to the issue. QIBs portion was left unsubscribed.
Brainbees Solutions Limited is India’s largest multi-channel retailing platform for Mothers’, Babies’, and Kids’ products, in terms of GMV, for the Financial Year 2024, according to the RedSeer Report, with a growing presence in select international markets. In India, it sells Mothers’, Babies’, and Kids’ products through its online platforms, company-owned modern stores, franchisee-owned modern stores, and general trade retail distribution.
Brainbees Solutions IPO Day 1 Live: FirstCry IPO has been subscribed 8% so far. The public issue received bids for 39.94 lakh equity shares as against 4.96 crore shares on the offer, according to the NSE data available till 2:30 pm on Tuesday, the first day of the bidding process.
The IPO has been subscribed 36% in the retail category, while the portion reserved for Employees has been subscribed 1.52 times. The Non Institutional Investors (NII) category has been subscribed 4% so far, while the Qualified Institutional Buyers (QIBs) are yet to place their bids.
Brainbees Solutions IPO Day 1 Live Updates: Firstcry IPO GMP today, or grey market premium today, is ₹55 per share, according to stock market observers. This indicates that the equity shares of Brainbees Solutions are trading at ₹520 apiece in the grey market, a premium of 11.8% to the issue price of ₹465 per share.
Brainbees Solutions IPO Day 1 Live: FirstCry IPO has been subscribed 7% so far. The public issue received bids for 35.35 lakh equity shares as against 4.96 crore shares on the offer, according to the NSE data available till 1:30 pm on Tuesday, the first day of the bidding process.
The IPO has been subscribed 32% in the retail category, while the portion reserved for Employees has been subscribed 1.37 times. The Non Institutional Investors (NII) category has been subscribed 4% so far, while the Qualified Institutional Buyers (QIBs) are yet to place their bids.
Brainbees Solutions IPO Day 1 Live Updates: Due to the absence of profitability, a meaningful P/E valuation cannot be determined. Additionally, the lack of comparable listed peers limits comparative analysis. Consequently, Swastika Investmart maintains a ‘neutral’ stance on the Firstcry IPO and advises investors to conduct thorough due diligence before making an investment decision.
Brainbees Solutions IPO Day 1 Live Updates: The company proposes to utilise the net issue proceeds towards capital expenditures, investment in subsidiaries, sales and marketing initiatives and financing of inorganic growth through acquisitions and other strategic
Brainbees Solutions IPO Day 1 Live: Advising investors to apply for the listing gain, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, said, "Despite having numerous outlets worldwide and a growing top line, the company has reported losses in recent periods. The issue is priced at a negative P/E based on its negative earnings. We anticipate a muted listing at around a 20 percent premium."
Brainbees Solutions IPO Day 1 Live: FirstCry IPO has been subscribed 5% so far. The public issue received bids for 24.99 lakh equity shares as against 4.96 crore shares on the offer, according to the NSE data available till 12 pm on Tuesday, the first day of the bidding process.
The IPO has been subscribed 23% in the retail category, while the portion reserved for Employees has been fully subscribed. The Non Institutional Investors (NII) category has been subscribed 3% so far, while the Qualified Institutional Buyers (QIBs) are yet to place their bids.
Brainbees Solutions IPO Day 1 Live: FirstCry, a leader in multi-channel retail for children's and maternal products, excels in customer engagement through its integrated physical and online platforms. While the company benefits from strong network effects and efficient inventory management, it faces serious challenges. Despite a 15% increase in revenue to ₹6,575.1 crore in FY24, FirstCry reported a loss of ₹321.5 crore and experienced a significant rise in debt from ₹176.5 crore to ₹462.7 crore. The current fundraise is focused on operational needs rather than debt reduction. Persistent negative cash flows, regulatory issues, and legal troubles add to its financial strain, said Akriti Mehrotra, Research Analyst at StoxBox.
Brainbees Solutions IPO Day 1 Live: FirstCry IPO has been subscribed 3% so far. The public issue received bids for 16.96 lakh equity shares as against 4.96 crore shares on the offer, according to the NSE data available till 11 am on Tuesday, the first day of the bidding process.
The IPO has been subscribed 16% in the retail category and 2% in the Non Institutional Investors (NII) category so far. The Qualified Institutional Buyers (QIBs) are yet to place their bids.
Brainbees Solutions IPO Day 1 Live: Brainbees Solutions Ltd has allotted 4.05 crore Equity Shares to 71 anchor investors and raised ₹1,885.8 crore ahead of the IPO opening at the upper price band of ₹465 per equity share.
The marquee investors include SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, Government of Singapore, Abu Dhabi Investment Authority, Goldman Sachs Funds, SBI Life Insurance, Fidelity Funds, Nordea Asset Management, Max Life Insurance Company Limited, Nomura Funds, Norges Bank, PSP, Carmignac among others.
Brainbees Solutions IPO Day 1 Live: The initial public offering (IPO) of Brainbees Solutions Ltd, which operates under the FirstCry brand, is now open for subscription. The bidding for the IPO began at 10 am on Tuesday, August 6, and will close on Thursday, August 8.
Brainbees Solutions IPO Day 1 Live: Brainbees Solutions IPO price band has been set at ₹440 to ₹465 per share. The ₹4,193.73 crore worth FirstCry IPO is a combination of fresh issue of 3.58 crore equity shares aggregating to ₹1,666.00 crore and an offer for sale (OFS) component of 5.44 crore shares totalling ₹2,527.73 crore.
Brainbees Solutions IPO Day 1 Live: The initial public offering (IPO) of Brainbees Solutions Ltd, which operates under the FirstCry brand, opens for subscription on Tuesday, August 6, and will close on Thursday, August 8. The IPO allotment is expected to be finalized on August 9 and the IPO listing date is August 13.
