FirstCry IPO: Public Issue To Go Live On August 6, Price Band Set At Rs 440-465/Share; Check Other Details

Brainbees Solutions Ltd, the parent company of India's omnichannel kidswear retailer FirstCry, is preparing for a debut in the Indian stock market. The company has announced a price band of Rs 440-465 per share for its upcoming Initial Public Offering (IPO), setting the stage for a significant entry into the capital markets. The IPO will be open for subscription from August 6 to August 8, with anchor bidding commencing a day earlier on August 5. The allotment basis will be finalized on August 9, and shares will be credited to investor accounts by August 12, with the company's stock expected to list on August 13.

The IPO comprises a fresh issue of Rs 1,666 crore and an Offer for Sale (OFS) valued at Rs 2,527.72 crore at the upper end of the price band. This results in a total issue size of Rs 4,187.72 crore, translating to a market capitalization of approximately Rs 22,475 crore (around $2.68 billion). This offering is anticipated to attract investor interest, given FirstCry's market presence and growth trajectory.

Brainbees Solutions initially filed its draft IPO papers with the Securities and Exchange Board of India (SEBI) in December last year, according to a Moneycontrol report. However, the process faced a setback when SEBI requested additional details on key performance indicators (KPIs). Initially, the company had provided only a handful of KPIs out of the 25 requested by SEBI. This led to the withdrawal of the draft IPO papers.

Following the feedback, Brainbees refiled its IPO documents, offering enhanced transparency regarding its financials. For FY24, FirstCry reported a revenue of Rs 6,480.86 crore, up from Rs 5,632.54 crore the previous year. Despite this growth, the company reported a loss of Rs 321.51 crore, an improvement from the Rs 486.01 crore loss in the prior year. EBITDA also showed a positive turnaround, reaching Rs 70.49 crore compared to an EBITDA loss of Rs 262.90 crore in FY23. The company's Gross Merchandise Value (GMV) surged to Rs 9,121.13 crore from Rs 7,257.64 crore.

FirstCry is a known name in India's baby and kids' product sector, with a diverse range of offerings across multiple channels. The company operates through online platforms, company-owned stores, franchisee-owned stores, and general trade distribution. It has also been making strides in international markets.

As of FY24, FirstCry's retail footprint includes 1,063 FirstCry and BabyHug stores spanning 533 cities, totalling 2.12 million square feet of retail space. The company boasts over 1.65 million SKUs from 7,580 brands, including apparel, footwear, and baby gear. The FirstCry app has achieved over 127 million downloads, reflecting its robust digital presence.

FirstCry's product catalogue features over 90,000 items from 1,200 brands, including major names like Funskool, Farlin, Mattel, Pampers, and Disney. The company's strategic partnerships and investments from firms such as Saif Partners, Valiant Capital Partners, and IDG Ventures India underscore its strong market position. With 100 franchised stores across 85 cities, FirstCry's customer acquisition strategies have cultivated a loyal consumer base.

As FirstCry moves closer to its IPO launch, investors are watching to see how the market responds to this offering. The pricing band of Rs 440-465 per share reflects the company's confidence in its growth potential and market position. The IPO's success could pave the way for further expansion and reinforce FirstCry's leadership in the baby and kids' product sector, both in India and internationally.