FirstCry IPO: Should you subscribe to this Rs 4,100 crore-issue? GMP, price band & more

The initial public offer of Brainbees Solutions, which owns and operates FirstCry, has opened for subscription today and will remain so till August 8. Ahead of the issue opening, the company raised Rs 1,886 crore from anchor investors.

The IPO consists of a fresh issue of shares worth Rs 1,666 crore and an offer for sale (OFS) of up to 2,528 crore shares. At the upper price band of Rs 465, the OFS would be worth about Rs 2,528 crore.

Under the OFS, Mahindra & Mahindra (M&M) plans to sell up to 28.06 lakh shares and SoftBank-operated SVF Frog will sell 20,318,050 shares. Others participating in the OFS include PI Opportunities Fund, TPG Growth and NewQuest Asia, Apricot Investments, Satyadharma Investments, Schroders Capital, Sage Investment and Pratithi Investment.

FirstCry IPO price band

The company has fixed a price band of Rs 440-465 per share, where investors can bid for 32 shares in one lot.

FirstCry IPO review

Analysts advised investors to subscribe to the IPO as the company is well placed to cater to the $120 billion market size of the child and mother and kids care products.

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"The company is valued at the FY24 EV/Sales multiple of 3.4x and P/B of 5x on post-issue capital. It has turned EBITDA positive in FY24 while registering a growth of 15% CAGR over the last 2 years on the revenue front. We recommend subscribing to the issue for long-term gains," said SBI Securities.

Other details

The SoftBank and Premji Invest-backed firm said it will utilize net proceeds from the IPO towards setting up new modern stores under the brand 'BabyHug', investment in subsidiary Digital Age, overseas expansion, and sales and marketing initiatives.

Brainbees Solutions is the largest multi-channel retailing platform for mothers, babies, and kids products, with a growing presence in select international markets. The company launched the FirstCry platform, a one-stop destination for parenting needs encompassing commerce, content, community engagement, and education.

It offers a wide range of products including apparel, footwear, baby gear, nursery items, diapers, toys, and personal care from Indian third-party brands, global brands, and its own brands.

They provide over 1.6 million SKUs from 7,500+ leading Indian and global brands. The company seeks to develop multi-year relationships with mothers, starting from the baby’s conception and continuing until the child reaches about 12 years of age.

In FY24, the company reported a 15% growth in operating revenue at Rs 6,481 crore, while it reduced losses by 34% to Rs 321 crore during the same period.

Over the last three financial years, the company's revenue from operations has grown to 6,481 crore for FY24 from Rs 2401 crore FY 2022.

Kotak Investment Banking, Morgan Stanley, BofA Securities, JM Financial, and Avendus are the book running lead managers to the issue, while Link Intime India is the registrar.