Firstcry IPO Opens August 6: Check Key Details
The initial public offering (IPO) of Brainbees Solutions, the parent company of the renowned kidswear brand FirstCry, is scheduled to open for public subscription from Tuesday, August 6, 2024, to Thursday, August 8, 2024. As the leading e-commerce company in India’s kids and babies shopping sector, FirstCry has carved a niche for itself since its establishment in 2010 by Supam Maheshwari and Amitava Saha, with its headquarters in Pune. Through this IPO, the company aims to raise ₹4,193.73 crore.
FirstCry IPO Issue Size
The FirstCry IPO is a book-built issue comprising a fresh issue of 35,827,957 shares, aggregating up to ₹1,666 crore, and an offer for sale (OFS) of 54,359,733 shares with a face value of ₹2 each. The OFS shares are valued at approximately ₹2,527.73 crore. The company has allocated 75% of the net offer for qualified institutional buyers (QIBs), not more than 10% for retail investors, and not more than 15% for non-institutional investors (NIIs).
FirstCry IPO Lot Size and Price Band
The FirstCry IPO price band is set between ₹440 to ₹465 per share. The lot size for the public issue is 32 shares, meaning investors can bid for a minimum of 32 shares and in multiples thereof. For retail investors, the minimum investment required to bid for the FirstCry IPO is ₹14,880. A retail investor can bid for a maximum of 13 lots or 416 shares, amounting to ₹193,440.
FirstCry Allotment and Listing Dates
The basis of allotment for FirstCry shares is expected to take place on Friday, August 9, 2024. The shares will be credited to demat accounts on Monday, August 12, 2024, and are scheduled to debut on the BSE and NSE on Tuesday, August 13, 2024.
FirstCry Financial Performance
FirstCry has shown substantial growth in its financial performance over the past few years. The company’s revenue from operations stood at ₹6,480.85 crore in FY24, up from ₹5,632.53 crore in FY23 and ₹2,401.28 crore in FY22. In FY24, FirstCry’s net loss contracted to ₹321.50 crore from ₹486.05 crore in FY23.
Objectives of FirstCry IPO
The company plans to use the net proceeds from the public issue to achieve several strategic objectives:
- Establishing New Modern Stores: FirstCry intends to set up new modern stores under the BabyHug brand across India to enhance its retail footprint.
- Warehouse Establishment: The proceeds will fund the establishment of a new warehouse in India to improve logistics and inventory management.
- Lease Payments: The company will use part of the funds for lease payments for its existing modern stores in India.
- Investments in Subsidiaries: Funds will be allocated to Digital Age for setting up new stores under the FirstCry brand and to FirstCry Trading for international expansion, including new stores and warehouses in Saudi Arabia (KSA).
- Acquisition of Additional Stake in Globalbees Brands: The company aims to acquire an additional stake in its subsidiary Globalbees Brands to strengthen its market position.
- Inorganic Growth: Proceeds will be used to finance inorganic growth through acquisitions, other strategic initiatives, and general corporate purposes.
FirstCry IPO Lead Managers and Registrar
Link Intime India Private Ltd. will serve as the registrar for the Brainbees Solutions IPO. The lead managers overseeing the public issue are Kotak Mahindra Capital Company, Morgan Stanley India Company, Bofa Securities India, JM Financial, and Avendus Capital.
Investment Highlights
FirstCry has established itself as a leading player in the e-commerce space for kids and babies products. Its strong brand recognition, extensive product range, and strategic investments in technology and logistics have positioned it well for future growth. The company’s expansion plans, both domestically and internationally, coupled with its focus on modern retail formats, are expected to drive significant value creation for its stakeholders.
Market Position and Competitive Advantage
FirstCry’s dominance in the Indian market is underscored by its vast network of online and offline stores, robust supply chain infrastructure, and a loyal customer base. The company’s ability to offer a wide variety of high-quality products at competitive prices has made it the go-to destination for parents and caregivers. Additionally, FirstCry’s commitment to innovation and customer satisfaction ensures it remains at the forefront of the industry.
Risk Factors
Potential investors should consider several risk factors before investing in the FirstCry IPO:
- Market Competition: The retail and e-commerce sectors are highly competitive, with numerous players vying for market share. FirstCry’s ability to maintain its competitive edge will be crucial.
- Regulatory Risks: Modifications in government policies and regulations can affect the company’s operations and financial performance.
- Operational Risks: The success of FirstCry’s expansion plans depends on the efficient execution of new store openings and the establishment of warehouses.
- Financial Risks: The company’s ability to manage its debt and maintain healthy financial metrics will be essential for sustaining investor confidence.
Conclusion
The FirstCry IPO presents a compelling investment opportunity, given the company’s strong market position, impressive financial growth, and strategic expansion plans. With a clear focus on enhancing its retail footprint and improving logistics, FirstCry is well-positioned to capitalize on the growing demand for kids and babies products in India and beyond. Investors looking for exposure to a leading player in the e-commerce and retail sector should consider the FirstCry IPO as a valuable addition to their portfolios.
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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