FirstCry makes strong market debut, shares list at 40% premium
What's the story
FirstCry, operated by Brainbees Solutions Ltd., has made a robust debut on the Indian stock market today. The company's shares were listed at ₹651 each on the National Stock Exchange (NSE), marking a premium of 40% over the issue price of ₹465 per share. On the Bombay Stock Exchange (BSE), FirstCry shares debuted with a 34.41% premium, being listed at ₹625 each.
Market response
FirstCry's IPO performance aligns with market expectations
FirstCry's IPO, which ran from August 6 to 8, received an overwhelming response from investors. It was subscribed over 12 times, indicating strong investor confidence in the company's future prospects. Though there might be slight fluctuations during initial trading, the listing price significantly surpassed the issue price, demonstrating continued investor optimism. This positive debut aligns with market expectations, where the grey market premium (GMP) signaled a strong listing for FirstCry.
Fundraising details
FirstCry raises over ₹4,000 crore through IPO
Through its IPO, Brainbees Solutions raised ₹4,193.73 crore at the upper end of the price band. The issue included a fresh issue of 3.58 crore equity shares worth ₹1,666.00 crore and an offer for sale (OFS) component of 5.44 crore shares aggregating to ₹2,527.73 crore. The FirstCry IPO received bids for 60.64 crore equity shares against an offer of just 4.96 crore shares, according to subscription data on NSE.
Investor interest
High subscription rates from QIBs and NIIs
The retail category saw a subscription of 2.31 times, while Qualified Institutional Buyers (QIBs) subscribed 19.30 times and Non-Institutional Investors (NII) subscribed 4.68 times. The IPO was managed by Kotak Mahindra Capital, Morgan Stanley India Company, BofA Securities India, JM Financial, and Avendus Capital. Link Intime India Private Ltd served as the IPO registrar for this process.
Company overview
FirstCry's financial performance and market presence
Brainbees Solutions Ltd. is recognized as India's largest multi-channel retailing platform for mothers', babies', and kids' products. The company also has a growing presence in select international markets. For the financial year 2024, the company reported net sales of ₹6,480.9 crore and EBITDA of ₹70.5 crore but posted a net loss of ₹321.5 crore, indicating its strong market position despite financial challenges.