IPO listing today: FirstCry shares list at 40% premium on BSE, NSE; Details

FirstCry IPO listing on BSE, NSE: Shares of Brainbees Solutions (FirstCry) made a strong debut on the bourses on Tuesday. The company's shares listed at Rs 625 on the BSE, a premium of Rs 160 or 34.40 per cent gain against the issue price of Rs 465.

On the NSE, they listed at Rs 651, yielding a return of Rs 186 or 40 per cent per share to investors against the allotment price.

Before its listing, the grey market premium (GMP) for the FirstCry IPO was quoted around Rs 87, suggesting strong listing gains.

Commenting on the listing, Shivani Nyati, Head of Wealth at Swastika Investmart, said, FirstCry made a strong debut on the stock market, listing at a significant 40% gain over its issue price, surpassing even the optimistic pre-listing expectations reflected in the healthy grey market premium. 

The IPO was moderately subscribed at 12.22 times, indicating decent investor interest. However, the strong listing performance, according to Nyati, reflects a renewed confidence in the company's growth prospects, despite ongoing profitability challenges.

While FirstCry's market leadership and strong brand position are undeniable, investors should remain cautious about the company's path to profitability. The reliance on third-party manufacturers and negative cash flows remain areas of concern that require close monitoring,' Nyati added.

FirstCry IPO key details

The IPO was available in a price band of Rs 440-465 per share with a lot size of 32 shares. It received decent participation, being subscribed 12.22 times by the end of the subscription period on August 8, 2024.

The public issue of FirstCry received bids 2.31 times from retail investors, 4.68 times from non-institutional investors (NIIs), and 19.30 times from qualified institutional buyers (QIBs).

The FirstCry IPO comprised a fresh issue of 35,827,957 shares aggregating up to Rs 1,666 crore and an offer for sale of 54,359,733 shares with a face value of Rs 2, worth nearly Rs 2,527.73 crore. The company raised Rs 1,885.83 crore from anchor investors during the bidding concluded on August 5, 2024.

The company plans to use the net proceeds from the IPO to fund expansion and growth initiatives, including setting up new stores, warehouses, and investments in subsidiaries for domestic and international growth. Additionally, funds will be allocated for sales and marketing, technology, and data science costs, as well as strategic acquisitions and general corporate purposes.

About Brainbees Solutions  

Brainbees Solutions Limited, founded in 2010, operates the online platform FirstCry, a one-stop store for parents' needs, offering a wide range of products for mothers, babies, and kids up to 12 years old.