FirstCry's stock market debut tomorrow: What does the GMP say?
Brainbees Solutions, the parent company of FirstCry, is preparing for its stock market debut on Tuesday. The firm's shares are currently trading at a Grey Market Premium (GMP) of ₹85 in the unlisted market. The company had set the price band for the IPO at ₹440 to ₹465 per equity share. So, based on the upper price band of ₹465 per share, the shares of FirstCry may list at around ₹550, a premium of 18.28% to the issue price.
FirstCry's IPO oversubscribed, raises ₹1,886 crore
The IPO of FirstCry was a success, with subscriptions exceeding 12 times on the final day of bidding. Prior to this, Brainbees Solutions had raised ₹1,886 crore from 71 anchor investors. Notable participants in this round included SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund as well as international entities like the Government of Singapore and Goldman Sachs.
IPO proceeds to fund expansion and marketing initiatives
The funds raised from the IPO will be utilized by Brainbees Solutions for various business ventures. These include establishing new stores under the 'BabyHug' brand, investing in subsidiary Digital Age, expanding internationally, and financing sales and marketing strategies. The company operates FirstCry as an all-inclusive platform for parenting needs, offering a diverse range of products from both Indian third-party brands and global brands.
FirstCry's financial performance and future prospects
In the financial year 2024, Brainbees Solutions reported a 15% increase in operating revenue at ₹6,481 crore. The company also managed to reduce its losses by 34% to ₹321 crore during the same period. Over the past three fiscal years, the firm's revenue from operations has grown significantly. The book running lead managers for this issue are Kotak Investment Banking, Morgan Stanley, BofA Securities, JM Financial and Avendus with Link Intime India serving as the registrar.
