Brainbees Solutions' FirstCry Shares Surge 40% Above Issue Price in Market Debut

Brainbees Solutions Ltd, the company behind the 'FirstCry' brand, made a robust entry on the stock market. The company's shares debuted at Rs 651 on the NSE, soaring 40 per cent above the issue price of Rs 465 per share.

The Softbank-backed company traded at a grey market premium (GMP) of Rs 80, roughly 17 per cent above the upper end of the IPO price band.

Brainbees Solutions is a multi-channel retail platform specializing in products for mothers, babies and children. It has an expanding presence in select international markets. The company introduced FirstCry platform to offer a range of products for toddlers.

Kotak Investment Banking, Morgan Stanley, JM Financial, BofA Securities and Avendus are serving as the book-running lead managers for the issue, with Link Intime India acting as the registrar.

Another Softbank-backed company, Ola Electric, debuted on D-street last week. Since then, the shares of the EV manufacturer has hit an upper circuit of 20 per cent twice on the stock exchanges.

Company Financials

The growth in the company's revenue has been driven by both organic growth and inorganic growth (acquisition of Digital Age in May 2022), as per a report by Anand Rathi.

The company saw its revenues from operations rise significantly to Rs 64,808 million in FY24, up from Rs 24,012 million in FY22. Its gross margin also improved, reaching 35.76 per cent in FY24 compared to 34.53 per cent in FY22. The company focuses on capital efficiency while scaling the business, the report added.

As of 31 March 2024, the parent company boasted an integrated supply chain with 80 warehouses and stockists spread across 47 cities in India. This network covers a total area of 3.18 million square feet, supports 1,063 modern stores and is connected to 567 distributors alongside 1,312+ sub-distributors. Altogether, they facilitate supply to 160,842 general and modern trade retailers.