FirstCry IPO Subscribed 11% On Day 1

The initial public offering of FirstCry's parent company, Brainbees Solutions Ltd., opened on Tuesday and has been subscribed 11%. The IPO consists 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 has raised Rs 1,885 crore from anchor investors on Monday, ahead of its initial public offering. The company allotted 4.05 crore shares at Rs 465 apiece to 71 anchor investors. SBI Blue Chip Fund got the highest allocation of 8.43%. The government of Singapore got the second-highest allotment of 6.81%.

The price band ranges from Rs 440 to Rs 465 per share, with minimum lot sizes of 32 shares. Retail investors can participate with a minimum investment of Rs 14,880, small non-institutional investors with a minimum
lot size of 14, and non-institutional investors with a minimum of 68 lots.

The allotment of shares is expected to be finalised on Aug. 9, and the tentative listing date on the BSE and NSE scheduled for Aug. 13.

• Issue opens: Aug 6.

• Issue closes: Aug 8.

• Issue price: Rs 440 to Rs 465 per share.

• Fresh issue: Rs 1,666 crore.

• Offer for sale: Rs 2,527.7 crore.

• Total issue size: Rs 4,193.7 crore.

• Bid lot: 32 shares.

• Listing: BSE and NSE. 

Brainbees Solutions, operator of FirstCry, offers a wide range of products for children from infancy till 12 years of age, including clothing, footwear, baby gear, diapers, toys, and personal care. With over 1.5 million stock keeping units from over 7,500 brands, the company caters to retail, content, community engagement, and education needs.

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.

The IPO has been subscribed 0.11 times or 11% as of 5:00 p.m. on Tuesday.

• Qualified institutional buyers: nil.

• Non-institutional investors: 0.08 times or 8%.

• Retail investors: 0.46 times or 46%.

• Employees Reserved: 1.79 times.