FirstCry IPO Opens Today: Key Details and What You Need to Know

The highly anticipated initial public offering (IPO) of Brainbees Solutions, the parent company behind the popular kidswear brand FirstCry, has officially opened for public subscription today. FirstCry aims to raise a substantial Rs 4,193.73 crore from this public issue. Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry has established itself as a leading player in India’s e-commerce sector for kids and baby products, with its headquarters in Pune. The subscription window for the FirstCry IPO will remain open until Thursday, August 8, 2024. Here are 10 key points to know before you consider bidding for the FirstCry IPO:

1. IPO Structure: The FirstCry IPO consists of a fresh issue of 35,827,957 shares, amounting to Rs 1,666 crore, and an offer for sale of 54,359,733 shares with a face value of Rs 2 per share, totaling Rs 2,527.73 crore.
2. Investor Allocation: FirstCry has allocated 75% of the net offer to qualified institutional buyers (QIBs), 10% to retail investors, and 15% to non-institutional investors (NIIs).
3. Price Band and Lot Size: The IPO price band is set at Rs 440-465 per share, with a lot size of 32 shares. Retail investors can bid for a minimum of 32 shares and in multiples thereof, requiring a minimum investment of Rs 14,880.
4. Grey Market Premium (GMP): On the first day of subscription, FirstCry shares are commanding a premium of Rs 45 in the grey market, indicating a potential listing gain of nearly 10% above the upper issue price of Rs 465.
5. Use of Proceeds: The funds raised from the IPO will be used to expand FirstCry’s retail presence in India by opening new stores and warehouses, investing in subsidiaries for domestic and international growth, making strategic acquisitions, and covering general corporate expenses, including acquiring a stake in Globalbees Brands.
6. IPO Registrar and Managers: Link Intime India has been appointed as the registrar for the IPO. The book-running lead managers include Kotak Mahindra Capital Company, Morgan Stanley India Company, Bofa Securities India, JM Financial, and Avendus Capital.
7. Allotment and Listing Dates: The basis of allotment for FirstCry shares is scheduled for Friday, August 9, 2024. The shares are expected to be credited to demat accounts by Monday, August 12, 2024, with the trading debut on the BSE and NSE slated for Tuesday, August 13, 2024.
8. Company Background: FirstCry, founded in 2010, has grown to become one of India’s foremost e-commerce platforms for kids and baby products. The company has a significant market presence and a robust online and offline retail network.
9. Financial Performance: Brainbees Solutions reported a revenue increase from Rs 5,632.53 crore in FY23 to Rs 6,480.85 crore in FY24. The company also reduced its net loss from Rs 486.05 crore in FY23 to Rs 321.50 crore in FY24, demonstrating improved financial health.
10. Market Potential: With its strong brand presence and expanding market reach, FirstCry is well-positioned to capitalize on the growing demand for kids and baby products in India and beyond. The IPO proceeds will further strengthen its growth trajectory and market leadership.

Investors considering the FirstCry IPO should carefully evaluate these key aspects before making their bidding decisions.