Synopsis: FirstCry's stock made a strong debut on the stock market, listing at a 40% premium over its issue price. The IPO was heavily oversubscribed, reflecting investor confidence in the company's market leadership.
Brainbees Solutions Ltd., the parent company behind the popular 'FirstCry' brand, made an impressive entry into the stock market on Tuesday, with its share price listing at 651 per share on the NSE, reflecting a 40% premium over the issue price of 465. On the BSE, the shares were listed with a 34.41% premium at 625 per share.
This strong debut aligns with market expectations, as the grey market had already indicated a robust opening for Brainbees Solutions shares. Prior to the listing, the grey market premium (GMP) for FirstCry IPO stood at 80, approximately 17% higher than the upper price band of the IPO.
The initial public offering (IPO) of Brainbees Solutions opened for public subscription on August 6 and closed on August 8. The IPO was heavily oversubscribed, with a subscription rate of 12.22 times the shares on offer. The retail category was subscribed 2.31 times, while the Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) categories were subscribed 19.30 times and 4.68 times, respectively.
The IPO price band was set between 440 and 465 per share, and the company successfully raised 4,193.73 crore at the upper end of the price band. The offering included a fresh issue of 3.58 crore equity shares worth 1,666 crore and an Offer for Sale (OFS) component of 5.44 crore shares aggregating to 2,527.73 crore.
Brainbees Solutions is India's largest multi-channel retail platform for mothers, babies, and kids' products, with a growing presence in select international markets. In FY24, the company reported net sales of 6,480.9 crore and an EBITDA of 70.5 crore. Despite the strong sales, the company posted a net loss of 321.5 crore.
The IPO's success is credited to the company's market leadership and its strong brand presence, making it an attractive investment for both retail and institutional investors. As the shares continue to perform well in the market, investors and analysts are optimistic about the long-term growth prospects of FirstCry.
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