FirstCry shares make strong market debut, list at 40% premium over IPO price

FirstCry makes a strong market debut; should you buy, sell, or hold?

Brainbees Solutions Ltd, the operator of the FirstCry platform, made a strong debut on August 13, with its shares listing at a 40 percent premium. The stock opened at Rs 651 on the NSE, higher than the IPO price of Rs 465. It's shares closed 3.8 percent higher at Rs 675.70.

The Rs 4,193.7 crore-IPO comprised a fresh issue of 3.6 crore shares worth Rs 1,666 crore and an offer for sale of 5.4 crore shares amounting to Rs 2,527.7 crore. The price band was set between Rs 440 and Rs 465 per share.

The IPO, which was open for subscription from August 6 to August 8, was subscribed 12.2 times overall. The retail category was subscribed 2.3 times, Qualified Institutional Buyers (QIBs) demonstrated strong enthusiasm by subscribing 19.3 times subscription, and the Non-Institutional Investors (NIIs) category was subscribed 4.7 times.

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Ahead of the listing, Brainbees Solutions raised Rs 1,885.8 crore from anchor investors on August 5. The company, founded in 2010, provides a comprehensive range of products for mothers, babies, and kids through its FirstCry platform, which features over 1.5 million SKUs from more than 7,500 brands.

The proceeds from the IPO will be utilised for various purposes, including establishing new stores under the "BabyHug" and "FirstCry" brands, expanding into international markets, investing in technology and data science, and other corporate growth initiatives.

Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Pvt Ltd, Bofa Securities India Ltd, JM Financial Ltd, and Avendus Capital Pvt Ltd are the book-running lead managers for the FirstCry IPO. Link Intime India Pvt Ltd is the registrar for the issue.

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