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Introduction To Firstcry IPO (Brainbees IPO)
Founded in the year 2010, the brand Firstcry has the parent company named Brainbees Solutions Limited. Brainbees Solutions IPO opening date is on August 6, 2024, Brainbees Solution IPO closing date is on August 8, 2024. Brainbees Solutions Limited has a book-built issue of or Brainbees Solution IPO issue size is Rs 4,193.73 crores.
It involves a fresh issue of 3.58 crore shares totalling Rs 1,666.00 crores and a sale offer of 5.44 crore shares totalling Rs 2,527.73 crores.
The allocation for the Brainbees Solutions (Firstcry) IPO is anticipated to be concluded on Friday, August 9, 2024. Brainbees Solutions (Firstcry) IPO plans to be listed on both BSE and NSE, with a tentative listing date set for Tuesday, August 13, 2024.
The price band for the Brainbees Solution IPO price band is between Rs 440 and Rs 465 per share. The smallest lot size for an application is 32 shares. Retail investors need a minimum investment of Rs 14,880. For small Non-Institutional Bidders (sNII), the minimum lot size is 14 lots (448 shares), totalling Rs 208,320; for big Non-Institutional Bidders (bNII), it is 68 lots (2,176 shares), totalling Rs 1,011,840.
The book-running lead managers for the Brainbees Solutions (Firstcry) IPO are Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Pvt Ltd, Bofa Securities India Limited, Jm Financial Limited, and Avendus Capital Pvt Ltd. Link Intime India Private Ltd serves as the registrar for the issue.
Brainbees Solution IPO (Firstcry IPO) Details:
| Firstcry IPO IPO Date | August 6 to August 8 |
| Firstcry IPO Face Value | Rs 2 per share |
| Firstcry IPO Price Band | Rs 440 to Rs 465 per share |
| Firstcry IPO Lot Size | 32 Shares |
| Total Issue Size | 90,187,690 shares (aggregating up to Rs 4,193.73 Cr) |
| Fresh Issue | 35,827,957 shares (aggregating up to Rs 1,666.00 Cr) |
| Offer for Sale | 54,359,733 shares of Rs 2 (aggregating up to Rs 2,527.73 Cr) |
| Employee Discount | Rs 44 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 48,33,49,470 |
| Shareholding post issue | 51,91,77,427 |
Brainbees Solutions (Firstcry) IPO Investors’ category and Shares offered
| Investor Category | Shares Offered |
| QIB Shares Offered | 75.00% of the Net offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
Brainbees IPO (Firstcry IPO) Key Dates:
| Firstcry IPO IPO Open Date | Tuesday, August 6, 2024 |
| Firstcry IPO IPO Close Date | Thursday, August 8, 2024 |
| Basis of Allotment | Friday, August 9, 2024 |
| Initiation of Refunds | Monday, August 12, 2024 |
| The credit of Shares to Demat | Monday, August 12, 2024 |
| Firstcry IPO Listing Date | Tuesday, August 13, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 8, 2024 |
Application Of Firstcry IPO Lot size, Shares and Their Value
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 32 | 14,880 |
| Retail (Max) | 13 | 416 | 1,93,440 |
| S-HNI (Min) | 14 | 448 | 2,08,320 |
| S-HNI (Max) | 67 | 2,144 | 9,96,960 |
| B-HNI (Min) | 68 | 2,176 | 10,11,840 |
FirstCry (Brainbees Solutions) Company Details:
FirstCry is an online platform that offers a variety of products for mothers, infants, and children. Established in 2010, Brainbees Solutions Limited provides retail, content, community involvement, and educational solutions for parents.
They offer a wide range of products for children up to 12 years old, including clothing, shoes, baby accessories, nursery items, diapers, toys, and personal care products.
The platform features over 1.5 million products from over 7,500 brands in categories like apparel, fashion, toys, books, school supplies, diapers, bath and skincare, nutrition and breastfeeding, health and safety, baby gear, and maternity wear.
Additionally, as of December 31, 2023, the Company maintained a network of over 900 contract manufacturers in India and other countries for its in-house brands, excluding those engaged by Globalbees Brands and its subsidiaries.
The Company has also established itself as the foremost specialized online retail platform for maternal, baby, and kids’ products in the UAE.
The Company had 3,411 full-time employees and 2,475 employees on a contract basis as of December 31, 2023.
Brainbees Solutions (Firstcry) has developed a strong brand presence and customer trust through its proprietary brands, such as BabyHug, which emerged as the leading multi-category brand for mother, baby, and kids products in India.
Other in-house brands of Brainbees Solutions like Pine Kids, Cute Walk by BabyHug, and Babyoye further solidify the Company’s position in the market.
Brainbees Solutions Financials:
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
| Assets (Rs in crores) | 7,510.38 | 7,119.83 | 6,197.16 |
| Revenue (Rs in crores) | 6,575.08 | 5,731.28 | 2,516.92 |
| Profit After Tax (Rs in crores) | -321.51 | -486.06 | -78.69 |
| Net Worth (Rs in crores) | 3,170.74 | 3,456.26 | 3,527.94 |
| Reserves and Surplus (Rs in crores) | 3,081.74 | 3,367.21 | 3,439.17 |
| Total Borrowing (Rs in crores) | 462.72 | 176.47 | 90.16 |
Brainbees Solutions KPI & Their Values
| Key Performance Indicators | Values |
| Return on Net Worth (RoNW) | -8.65% |
| Price to Book Value (P/BV) | 6.49 |
Objectives From The Fresh Issue’s Net Proceeds Of The IPO
1) The Company’s spending on –
(i) establishing new modern stores under the “BabyHug” brand and
(ii) constructing a warehouse in India;
2) Expenses for leasing the existing identified modern stores owned and operated by our Company in India;
3) Capital investment in the Subsidiary, Digital Age, for (i) establishing new modern stores under the FirstCry brand and other home brands of our Company and (ii) lease payments for the existing identified modern stores owned and controlled by Digital Age in India;
4) Capital investment in our Subsidiary, FirstCry Trading, for global expansion by (i) establishing new modern stores and (ii) constructing warehouse(s) in KSA;
5) Capital investment in our Subsidiary, Globalbees Brands, for acquiring an additional stake in our step-down Subsidiaries;
6) Initiatives related to sales and marketing;
7) Costs associated with technology and data science, including cloud and server hosting-related expenses; and
8) Provision of funds for inorganic growth through strategic initiatives, acquisitions, and general corporate purposes.
Brainbees Solution IPO GMP
The last Grey Market Premium (Firstcry IPO GMP) is Rs 100 as of August 2nd, 2024, at 11:59 AM. The price band for the IPO is set at Rs 465.00. The estimated listing price for the Firstcry IPO is Rs 565, calculated by adding the cap price to today’s GMP.
The expected percentage gain/loss per share is 21.51%. The Firstcry IPO Retail Subject to Sauda is Rs 2400. The Firstcry IPO Small HNI subject to Sauda value is yet to be determined. The Grey Market Premium (GMP) ranges from Rs 0 to Rs 100.
Risks Associated With The Firstcry IPO
1) The company has experienced negative net cash flows and may continue to do so.
2) a) The company is yet to determine the locations or properties in India and the Kingdom of Saudi Arabia where we will establish our new modern stores and warehouses. To finance these endeavors, we plan to use funds from Net Proceeds.
b) The company may allocate some Net Proceeds for inorganic growth opportunities without identifying specific targets. If the Net Proceeds allocated for these initiatives are insufficient to cover the costs of our proposed inorganic acquisition, the company may need to explore alternative funding sources.
3) Acquiring and retaining customers is crucial for generating revenue and achieving profitability. All areas for improvement could impede the company’s financial growth. Maintaining existing relationships with third-party brands or establishing new ones will positively impact the business, financial condition, and cash flows.
Frequently Asked Questions (FAQs)
Where can you find the detailed documentation filed by the company?
Brainbees Solution IPO RHP (Red Herring Prospectus) and Draft Red Herring Prospectus (DRHP) has been filed on the website of SEBI. You can refer to those documents to get better clarity of the Brainbees Solutions IPO.
What is the price band of the Brainbees Solution (FirstCry) IPO?
Brainbees Solutions (Firstcry) IPO has a price band between Rs 440 and Rs 465 per share.
What are the other in-house brands associated apart from Firstcry, with Brainbees Solutions?
The other brands associated apart from Firstcry, with Brainbees Solutions Pine Kids, Cute Walk by BabyHug, and Babyoye.
Will the net proceeds be used from the Offer from sale for Brainbees Solutions IPO?
The net proceeds from the Offer from Sale (OFS) through Brainbees Solutions IPO will not be utilised for funding the objectives of the company.
Who are the top competitors to the e-commerce platform of the brand Firstcry?
The top competitors of the brand Firstcry, are SuperMom, Flipkart, and Hopscotch.
In which year was Brainbees Solutions founded and by whom?
Brainbees Solutions earlier known as Brainbees Solutions private limited was founded in the year 2010 by Supam Maheshwari.
