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Brainbees Solutions, the parent company of the popular online baby and children's products retailer Firstcry, has announced the price band for its upcoming initial public offering (IPO). The company plans to sell its shares in the range of Rs 440-465 apiece. Investors can apply for a minimum of 32 equity shares and multiples thereof. The IPO will be open for bidding between August 06 and August 08, with the anchor book opening on August 05.
Founded in 2010, Brainbees Solutions has established itself as a leading online platform for mothers, babies, and children. Through its Firstcry platform, the company offers a wide range of products, including apparel, footwear, baby gear, nursery items, diapers, toys, and personal care products. It aims to be a one-stop shop for all the needs of parents, encompassing retail, content, community engagement, and education. The company's product portfolio includes offerings from Indian third-party brands, global brands, and its own brands.
The IPO of Firstcry comprises a fresh share issue of Rs 1,666 crore and an offer-for-sale (OFS) of 5,35,59,733 equity shares by existing shareholders, totaling Rs 2,490.52 crore. At the upper end of the price band, the company is targeting a total raise of Rs 4,156.52 crore through the primary stake sale.
The net proceeds from the issue will be allocated towards various strategic initiatives. These include the establishment of new modern stores under the 'BabyHug' brand, setting up a new warehouse in India, covering lease payments for existing identified modern stores, investing in its subsidiary digital age, investing in subsidiary Globalbees Brands for acquisitions, funding sales and marketing efforts, and general corporate purposes.
Brainbees Solutions caters to a comprehensive range of needs for infants up to the age of 12. The company boasts an extensive product offering with over 1.5 million SKUs from more than 7,500 brands across categories. Its multi-channel platform reaches a vast audience. However, the company has reported financial losses in recent years. For the year ended March 31, 2024, Brainbees Solutions recorded a net loss of Rs 321.51 crore with revenue of Rs 6,575.08 crore. In the previous financial year, the net loss stood at Rs 486.06 crore with revenue of Rs 5,731.28 crore.
The IPO has allocated shares worth Rs 3 crore for eligible employees, who will receive a discount of Rs 44 per share. The net offer has been reserved for different investor categories: 75 percent for qualified institutional bidders (QIBs), 15 percent for non-institutional investors (NIIs), and 10 percent for retail investors. Kotak Mahindra Capital Company, Morgan Stanley India Company, Bofa Securities India, JM Financial, and Avendus Capital are the book running lead managers for the Brainbees Solutions IPO. Link Intime India serves as the registrar for the issue. The company's shares are expected to be listed on both BSE and NSE on August 13.
The IPO of Brainbees Solutions is a significant event for the Indian e-commerce sector and particularly for the baby and children's products market. The company's decision to go public reflects its ambition to expand its business and reach a wider audience. The success of the IPO will depend on various factors, including investor sentiment, the company's future growth prospects, and its ability to address its past financial challenges. Investors will closely monitor the IPO's performance and the company's subsequent performance on the stock market.
Source: Firstcry-parent Brainbees Solutions announces IPO price band; check details