FirstCry’s Parent Company Brainbees Solutions’ IPO Gains Momentum
The initial public offer (IPO) of e-commerce platform FirstCry’s parent Brainbees Solutions has garnered significant attention, achieving 30 percent subscription on the second day of bidding. The IPO, which opened for subscription on August 2, is set to close on August 8, with investors keenly watching its progress.
Brainbees Solutions IPO Details
The Rs 4,194 crore initial share sale has received bids for 1,47,37,568 shares against the 4,96,39,004 shares on offer, according to NSE data. The portion allocated for Retail Individual Investors (RIIs) was oversubscribed 1.06 times, while the Non-Institutional Investors (NIIs) category saw a 30 percent subscription rate. The Qualified Institutional Buyers (QIBs) category has so far attracted a modest 3 percent subscription.
Anchor Investors and Price Band
On Monday, Brainbees Solutions announced that it had successfully raised Rs 1,886 crore from anchor investors. The IPO is priced between Rs 440 and Rs 465 per share.
Composition of the IPO
The IPO comprises a fresh issue of equity shares valued at Rs 1,666 crore and an Offer for Sale (OFS) component of up to 5.44 crore shares, worth Rs 2,528 crore, being sold by existing shareholders. This raises the total issue size to Rs 4,194 crore.
Key Shareholders Participating in OFS
As part of the OFS, SVF Frog, a Cayman Islands-based entity of SoftBank, will be selling 2.03 crore equity shares of Brainbees Solutions. Additionally, Mahindra & Mahindra (M&M) plans to offload 28.06 lakh shares. Softbank currently holds a 25.55 percent stake in Brainbees Solutions, while M&M owns 10.98 percent.
Other shareholders selling their stakes in the OFS include PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, and Schroders Capital. Notably, veteran industrialist Ratan Tata is also among the individual shareholders reducing their holdings.
Utilization of IPO Proceeds
The net proceeds from the fresh issue will be used for multiple purposes, including:
- Setting up new stores under the brand ‘BabyHug’
- Investment in subsidiaries
- Overseas expansion
- Sales and marketing initiatives
- Corporate general purposes
Market Capitalization Post-Issue
Brokerage houses have estimated the market capitalization of Brainbees Solutions to be Rs 24,142 crore post-issue. This valuation highlights the company’s substantial presence and growth potential in the market.
About FirstCry
Established in 2010, FirstCry has evolved into India’s leading multi-channel and multi-brand retail platform for products for mothers, babies, and children. It aims to serve as a one-stop destination for all parenting needs, offering a comprehensive range of products and services that include commerce, content, community engagement, and education. The platform has built a strong reputation based on brand affinity, customer loyalty, and trust.
Expanding its footprint globally, FirstCry established its presence in the UAE in 2019 and in Saudi Arabia in 2022.
Lead Managers for the IPO
The book-running lead managers for the issue are Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company, BofA Securities India, JM Financial, and Avendus Capital. These institutions bring extensive experience and expertise to ensure the successful management and execution of the IPO.
Conclusion
The Brainbees Solutions IPO marks a significant milestone for the company and its stakeholders. As the subscription period progresses, the strong interest from retail and institutional investors reflects the confidence in FirstCry’s business model and growth prospects. With a solid foundation and ambitious plans for the future, Brainbees Solutions is well-positioned to capitalize on the opportunities in the e-commerce and retail sectors.
Disclaimer: The opinions and recommendations provided above reflect the views of individual analysts or brokerage firms and do not represent those of OSTP Media. We recommend that investors consult with certified experts before making any investment decisions.
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