Shares of FirstCry parent Brainbees Solutions Ltd. closed 46% over their issue price on Tuesday. The stock ended at Rs 679.1 per share on NSE, compared to an issue price of Rs 465 per share. On BSE, the stock closed at Rs 678 per share, marking a rise of 45.8%.
Brainbees Solutions' initial public offering was subscribed 12.22 times on its third and final day, led by demand from institutional investors. The IPO consisted of a fresh issue of 3.58 crore shares, aggregating Rs 1,666 crore, and an offer for sale of 5.44 crore shares, amounting to Rs 2,527.7 crore.
The company raised Rs 1,885 crore from anchor investors ahead of the IPO.
Billionaire Anand Mahindra said investment in the company was an experiment to figure out how do large business groups incubate and build new businesses. "In 2010, we created Mahindra Partners to attempt this experiment. I asked my colleagues to isolate the mentality of startups that worship the temple of value creation," he said during the listing ceremony.
Billionaire Anand Mahindra. (Source: Listing Ceremony of Brainbees Solutions)
Billionaire Anand Mahindra. (Source: Listing Ceremony of Brainbees Solutions)
The segment that FirstCry operates in is growing 20% annually, said Managing Director and Chief Executive Officer Supam Maheshwari. "We believe we can further compound growth our topline and bottom-line. We are here to build a new-age retail playbook for India," he told NDTV Profit.
The company will continue to demonstrate volume and value growth in India, given the demographics. It also sees growth in other markets like Saudi Arabia and UAE, he said.
FirstCry plans to utilise the proceeds from its IPO in several strategic areas. The company will allocate Rs 108.1 crore for setting up new modern stores under the ‘BabyHug’ brand and establishing warehouses. A total of Rs 93.1 crore will go towards lease payments for existing identified modern stores.
FirstCry also intends to invest Rs 299.6 crore in its subsidiary, Digital Age, and Rs 155.60 crore in FirstCry Trading, for overseas expansion. Additionally, Rs 169 crore will be invested in its subsidiary, Globalbees Brands.
To enhance its market presence, Rs 200 crore will be directed towards sales and marketing initiatives, while Rs 57.6 crore will be allocated for tech and data science costs.
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