FirstCry shares fall 4%: IPO lock-in period ends, GST issue weighs

The fall in the stock price follows the end of the lock-in period for 20 million shares from the company's initial public offering, launched in August this year

Shares of e-retail company Brainbees Solutions (FirstCry) fell 3.86 per cent to the day’s low of Rs 543.05 on the National Stock Exchange (NSE) during intra-day deals on Monday. This follows the end of the lock-in period for 20 million shares from the company’s initial public offering, launched in August this year. FirstCry shares listed at Rs 651, a premium of 40 per cent against the IPO issue price of Rs 465, on August 13, 2024.

 

Earlier, on November 10, 2024, FirstCry informed the exchanges that the company had made a payment of Rs 1.74 crore (including interest) due to an alleged contravention of the GST Act on account of mismatches between amounts mentioned in GST returns (GSTR-3B and GSTR-2A) during financial years 2018-19, 2019-20, 2020-21, and 2022-23, highlighted by GST officials.

 

 

"The GST officials had also raised some queries with respect to the GST implications on the amount paid toward IPO expenses (in respect of expenses incurred for the fresh issuance of shares during the IPO). The company has provided suitable explanations in this regard," FirstCry said in a regulatory filing on the NSE.

 

Founded in 2010, Brainbees Solutions 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. As of November 11, 2024, the company has a market capitalization of Rs 28,160.55 crore on the NSE.

 

FirstCry shares have a 52-week range of Rs 734 to Rs 542.15 on the NSE.

 

At around 11:52 am on Monday, FirstCry shares were quoted trading at Rs 542.75, down 3.84 per cent from the previous close of Rs 564.45 on the NSE. Nearly 0.40 million shares of FirstCry, worth approximately Rs 22.32 crore, exchanged hands on the BSE and NSE today.

 

Meanwhile, benchmark equity indices BSE Sensex and NSE Nifty50 were trading higher on Monday. Sensex was trading at 79,990.39 levels, up 504.07 points or 0.63 per cent, while Nifty50 traded 155.45 points or 0.64 per cent higher at 24,303.65 levels.