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FirstCry IPO Detail: Launch Date, Share Price, Size, GMP & Review

FirstCry-(Brainbees)-IPO-Details-Launch-Date-Share-Price-Size-GMP-&-Review

FirstCry (Brainbees Solutions) – About the Company

FirstCry launched in 2010, is India’s largest multi-channel retailing platform owned by the Brainbees Solutions for Mothers’, Babies’ and Kids’ products. The company sells Mothers’, Babies’ and Kids’ products through its online platform, company-owned modern stores, franchisee-owned modern stores and general trade retail distribution and also growing presence in select international markets.

The company offers products from prominent third-party Indian brands and global brands, it’s our home brand and created trusted home brands in the Mothers’, Babies’ and Kids’ products categories while understanding the requirements of its customers.

The company has established its presence in international markets and started its operations in UAE and KSA in 2019 and 2022 respectively. As per the RedSeer Report, in terms of GMV, for the year ending Dec 2022, First Cry is the largest specialist online Mothers', Babies' and Kids' Product retail platforms in UAE. While in KSA it is the largest online-first Mothers’, Babies’ and Kids 'product-focused retail platform with the aim to replicate the India playbook in KSA.

The company operates with robust data analytics tools, in-house design and development capabilities and by leveraging the market recognition of the “FirstCry” brand with customer trust towards its home brand BabyHug which is the largest multi-category products brand for mothers, kids and babies. The company is operating with the expertise in creating and scaling brands and leveraging its multi-channel distribution network, sourcing capabilities, supply chain infrastructure, and integrated technology ecosystem across the business groups.

FirstCry (Brainbees Solutions) IPO Objectives

As per the offer documents, the IPO comprises of issuance of fresh equity shares worth ₹1,816 crore as well as an offer-for-sale by existing shareholders and promoters. Out of the total amount raised through the fresh issue of shares, a major portion will be used for setting up the modern stores and payment of lease for existing modern stores.

Another major portion of the proceeds from the IPO will be used for the acquisition of an additional stake in subsidiaries including Globalbees and set up the modern FirstCry stores and warehouse in Saudi Arabia. And remaining part of the fund will be used for the sales and marketing initiatives, for tech, data, cloud & server costs and general corporate purposes.

FirstCry (Brainbees Solutions) IPO Details:

IPO Open Date To be Announced
IPO Close Date To be Announced
Basis of Allotment To be Announced
Listing Date To be Announced
Face Value Rs 2 per share
Price To be Updated
Lot Size To be Updated
Issue Size [.] shares
(aggregating up to Rs 18,16.00 crore)
Fresh Issue [.] Shares, aggregating up to Rs XXXX.00 crore
Offer For Sale [54,391,592] Shares, aggregating up to Rs XXX crore
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Net Issue
Retail Shares Offered Not less than 35% of the Net Issue
NII (HNI) Shares Offered Not less than 15% of the Net Issue

 

FirstCry (Brainbees Solutions) IPO Issue Price & Size

The issue price of FirstCry IPO is in the range of Rs XXXX to Rs XXXX. Investors can bid between these price ranges. Though the total size of the issue is not declared yet, there will be a fresh issue of shares of Rs 1816 crore and 5.4 crore shares will be sold through the offer-for-sale (OFS).

FirstCry (Brainbees Solutions) IPO Launch Date

The launch date for the FirstCry IPO has not been declared yet, but as soon as announced by the company, it will be updated. However, the FirtCry IPO will be open on XXXX (Date) and will be closed XXXX (Date). You can bid in the FirstCry IPO between these date ranges to become eligible for the IPO application and other proceedings in the IPO.

FirstCry (Brainbees Solutions) Financial Statements:

Particulars (Rs in Million) FY24 (3M) FY23 FY22 FY21
Revenue from Operations 14,069.33 56,325.39 24,012.88 16,028.54
Other Income 198.84 987.37 1156.28 1372.05
Total Income 14,268.17 57,312.76 25,169.16 17,400.59
Operational Expenses 10637.21 47051.48 19109.87 12599.22
Other expenses 3588.97 12446.63 5085.02 3010.65
EBITDA 41.99 (2185.35) 974.27 1790.72
EBITDA Margin% 0.30% -3.88% 4.06% 11.17%
Depreciation 835.58 2942.83 1108.88 702.37
Interest 356.54 715.73 376.83 140.76
Profit/Loss Before Tax (1150.13) (5843.91) (511.44) 947.59
Exceptional items income (net) 0.00 543.68 0.00 0.00
Share of profit of an associate 0.00 0.00 0.00 35.62
Total tax 45.77 439.67 (275.41) 1176.23
Profit/Loss After Tax (1104.36) (4860.56) (786.85) 2159.44
PAT Margin% -7.85% -8.63% -3.28% 13.47%
EPS Basic (Rs) (0.71) (3.91) (2.23) (0.59)

Source: FirstCry DRHP

FirstCry (Brainbees Solutions) Financial Performance

The revenue from operations of the FirstCry for the first quarter ended FY24 (Apr-Jun 2023) is Rs 1407 crore. For the full year FY23, the revenue of the company was Rs 5632.54 crore registered a CAGR of 87.5% from FY21 of Rs 1602.85 crore.

The EBITDA of the company for the first quarter ended FY24 was Rs 4.2 crore, while the same was negative of Rs 218.53 crore in FY23 not comparable to previous years, as the EBITDA for FY21 stood at Rs 179.07 crore. In FY23 the EBITDA margins were -3.9% but thanks to better operating margins, the same improved in the Jun quarter ended FY24 and marginally became in positive at 0.30%.

Owing to the high operational cost the company incurred a net loss of Rs 110.43 crore in the first quarter of the FY24. While the net loss for the full financial year 2023 was Rs 486.06 crore. Though, the company registered a net profit of Rs 215.94 crore in FY21 with a net profit margin of 13.5% for the same period but now running with net loss margins of around 8.63% and 7.85% in FY23 and FY21 respectively.

FirstCry IPO Promoters & Shareholding of the Company

As per the draft red herring prospectus (DRHP) the company has no identifiable promoter but there are many well-known fund houses heavily invested in the company and now looking to unlock the value of their investment and monetize through this IPO.

Also Read: What is IPO: How it Works & Everything Else You Need To know

Supam Maheshwari is the founder and CEO of FirstCry holding merely a 5.95% stake in the company. The Soft Bank's special purpose investment arm SVF Frog (Cayman) Ltd, Mahindra and Mahindra (M&M) and Brainbees ESOP Trust are the other largest shareholders in the company with 25.55%, 10.98% and 8.40% stakes respectively in the company. For the details of other shareholders in the FirstCry, you can check the table below.

S.No. Name of the Shareholder No. of Equity Shares on a fully diluted basis (Pre-offer) % of Equity Share Capital on a Fully Diluted basis (%)
1 Amitava Saha 9,655,800 1.99%
2 Apricot 16,821,867 3.46%
3 BEWT 13,136,590 2.71%
4 Brainbees ESOP Trust 40,806,340 8.40%
5 M&M 53,334,835 10.98%
6 MEMG 5,128,836 1.06%
7 SVF Frog (Cayman) Ltd - Soft Bank Arm 124,092,296 25.55%
8 NextGen 22,482,090 4.63%
9 NewQues 18,576,620 3.83%
10 PI Opportunities I 23,819,568 4.91%
11 PI Opportunities II 26,457,268 5.45%
12 Prashant Jadhav 7,015,800 1.44%
13 Supam Maheshwari 28,893,347 5.95%
14 Think India 5,162,567 1.06%
15 TIMF 24,032,643 1.06%
16 TPG 24,032,643 4.95%
17 Valiant 14,817,892 3.05%
  Total 458,267,002 90.48%

Source: FirstCry DRHP

Out of these shareholders, SoftBank, Mahindra and Mahindra (M&M), Premji Invest, TPG, NewQuest and others will sell a total of 5.4 crore shares in the offer for sale (OFS).Apricot Investments, Valiant Mauritius, TIMF, Think India Opportunities Fund, Schroders and will also sell a part of their stake through an offer for sale (OFS in FirstCry.

However, other selling shareholders are like Supam Maheshwari and top executives are also likely to sell some of his shares in the company. Tata Sons Ratan Tata, who is holding 77,900 preference shares, will also sell all his equity shares (post-IPO) in the company.

Why Invest in FirstCry(Brainbees Solutions) IPO?

Investing in the FirstCry IPO or any other company launching its shares in the primary markets, or investing in the stocks of a listed company, you need to consider various factors. As it is not listed yet, hence technical analysis is not possible but you can perform the fundamental analysis to know the competitive strengths and weaknesses of the company.

Also Read: Technical Analysis vs Fundamental Analysis: Which is Better

While analyzing the fundamental factors, you will get to know about the positive aspects that will drive its revenue growth. Also, check the future growth prospects of the company at the same time what are the risk factors that will affect the business operations and revenue growth of the company. In respect of the same, we brought here and highlighted the competitive strength and risk factors you can consider while investing in the FirstCry IPO.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

Competitive Strengths:

  • As per the RedSeer Report informed in DRHP, India has the largest population of children globally, with approx 309 million children under 12 years of age. While the Childcare products spending per capita in India is currently at only Rs 7,975, but projected to grow at a CAGR of approximately 15% from 2022 to 2027 (compared to 3% for the USA and 7% for China).
  • As per the RedSeer Report, based on GMV for the year Dec 2022, FristCry is India's largest multi-channel retailing platform for Mothers', Babies' and Kids' products. And company is going to get the advantage of growing the demand for kid’s products due to its brand recognition.
  • FirstCry is operating its online platform with powerful network effects driven by content, brands and data helping the company to acquire new customers and keep the existing customers from various segments like Mothers', Babies' and Kids' products.
  • FirstCry is a well-known brand in the online retailing for Mothers', Babies' and Kids' products and enjoying the brand affinity, loyalty and trust of customers. This brand affinity that the company has built with the customers also helps to attract and engage the customers.
  • The company has a dedicated brand partnerships team to works with brands to build mutually beneficial marketing campaigns that leverage the experience and data to grow the childcare products ecosystem, providing brands with channels for customer acquisition and opportunities for business growth.
  • The technology and data-driven, personalized customer journey leads to higher customer engagement personalized for the company. This technology-driven business strategy is helping to achieve a data-driven product and sales approach with centralized inventory management.
  • As of June 30, 2023, the company has a network of over 800 contract manufacturers across India and overseas for its home brands, excluding contract manufacturers engaged by Globalbees Brands and its subsidiaries. The company has control over the manufacturing of these products, which helps it exercise greater control over product quality, as well as improve the gross margins.
  • The company has been successfully expanding its Annual Unique Transacting Customers base over the years by consistently investing in brand, technology, products, Further will continue to invest in technology to elevate customer experience, and provide personalized,  enjoyable and multi-channel customer journeys and enhance brand awareness.
  • As of June 30, 2023, we had 936 modern stores (with 1.76 million sq ft retail space) across India, and aim to further invest in the expansion of its modern store network by adding both new stores and newer formats of stores across India and in the international markets.
  • To expand the portfolio of home brands, FirstCry has aimed to further diversify the product offerings through continuous research and review of the current home brand portfolio across the business channels and geographies, by launching innovative products, newer price segments, and also by adding new brands in the long-term.
  • To increase the presence of its home brands on store shelves, across "mom-and-pop" stores, pharmacies, supermarkets, and hypermarkets, the company has started building a network of distributors and retailers across India.
  • To enhance the manufacturing capacity, the company has aimed to invest in growing the network of its contract manufacturers and increasing the manufacturing capacity of its subsidiaries. And to enhance its supply chain capabilities, it will also invest in additional warehouses and last-mile delivery capabilities to provide a better customer experience.
  • Further to expand its footprints and presence in the international markets, it will keep exploring the scope of scaling up the business to provide a multi-channel experience to its customers in the new countries.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Risks Factors:

  • The business of the company highly depends on the growth of the online commerce industry in India and its ability to effectively respond to changing customer behaviour on digital platforms. If the online e-commerce industry in India does not further develop and grow and it is not able to effectively respond to changing customer behaviour, it could affect the business operations of the company.
  • FirstCry is competing with online players like Amazon, Flipkart, Meesho, Hopscotch, Myntra, and Ajio, and multi-brand and exclusive retailers such as Reliance Trends, and Gini & Jony who all are also offering Childcare Products in the Indian market. Failure to compete effectively with these players will have a negative effect on the success of the business.
  • The tastes and preferences of the customers keep changing if the company fails to adapt to changes in the industry, or is unable to identify and effectively respond to changing customer preferences, trends and spending patterns for Mothers', Babies', and Kids' Products, the demand for its products could decrease, causing the business, results of operations, financial condition and cash flows to be adversely affected.
  • The business growth of the company significantly depends on franchisees, warehouse operators, logistic partners, distributors and other such commercial relationships for the product distribution network. And any changes in the relationships with such entities, or adverse conditions that affect such entities could have an adverse effect on the business operations and financial growth of the company.
  • The sale of its home brand products subjects us to unique risks and heightens certain other risks, such as dependence on third-party manufacturers and suppliers for certain products and raw materials, liability for unexpected accidents, product liability, and selling of top brands by any unauthorized sellers in any region.
  • There are outstanding litigation proceedings against the Company, Subsidiaries and Directors. Any adverse outcome in such proceedings may have an adverse impact on the reputation, business, financial condition, results of operations and cash flows of the company.
  • At the financial end company has incurred losses in past periods and may continue to do so in the future, which may adversely impact the business and the value of the Equity Shares.

FirstCry IPO Grey Market Premium (GMP)

The Grey Market Premium or GMP is the speculative premium price over the issue price of any company that launched the IPO and going to list soon on bourses. The GMP is determined as per the demand and supply of shares in the company in the grey market.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable

However, the GMP is not a certified or reliable indicator to know the listing price of any unlisted company but it can be an indicative factor to know around which the shares are going to list. As per the sources the GMP of the FirstCry IPO is around Rs XXXX.

FirstCry (Brainbees Solutions) IPO Review & Analysis

Based on the net earnings and earnings per share of the company, evaluation of the share price of the company is not possible, as the company is running into a loss. Due to negative EPS, it is also not possible to compare FirstCry with its listed peers based on the price-to-earnings ratio. The issue price is also not disclosed yet in the market.

However, while considering the issue price of the FirstCry IPO, if the share price is issued at deep discount or available at fairly priced you can apply in the IPO with the medium to long-term investment outlook. If the FirstCry IPO is issued at a very high premium price, you can avoid applying to the issue or only invest with the long-term view.

How to Apply for FirstCry (Brainbees Solutions) IPO?

Applying for the FirstCry IPO becomes very easy and trouble-free if you have demat and trading account with Moneysukh. However, if you don't have both or any of these accounts just apply here to open the same with the required documents to verify the KYC and make you eligible not only to apply in the IPOs but also to invest or trade in the equity market.

Also Read: Trading or Investing Which is Better and More Profitable

Moneysukh is one the best discount brokers in India and offers the best trading platform for trading and investing in the equity, commodity and currency markets. You will get here the most advanced online trading software like Trade Radar and TradingView to utilize all the market data and other useful resources to analyse the market conditions.

Also Read: How to Start Algo Trading in Moneysukh: A Best Algo Trading Platform

At Moneysukh not only the IPOs, cash market or derivatives market but you can also enjoy high-frequency trading through the best Algo-trading platform to trade with the most popular Algo trading strategies and best intraday Algo trading strategy. So, what are you waiting for, open your trading and demat account right now and start your trading and investing journey right from here. However, to apply for the FirstCry IPO just follow the steps below.

Also Read: How to Start Algo Trading in Moneysukh: A Best Algo Trading Platform

Steps to Apply for FirstCry (Brainbees Solutions) IPO:

Step 1: When the FirstCry IPO date opens for bidding you can apply.

Step 2: Open trade.moneysukh.com and log in with your User ID & password.

Step 3: Now you find the IPO section and select the FirstCry IPO.

Step 4: Here just fill in the required details like price, quantity, and so on.

Note: At the time of applying for an IPO, bid at the cutoff price then submit your application. 

Step 5: Before you submit make the payment and submit the IPO application successfully.

How to Check FirstCry (Brainbees Solutions) IPO Allotment Status?

The allotment of shares in the IPO starts a few days after the bidding closes. You need to wait for the same and once the allotment procedure is organized you can check the allotment status through various online sources. Once the allotment procedure is completed, you will get to know if you have been allocated any shares in the FirstCry IPO or not.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

Usually when the IPO price is issued at a very attractive valuation or offered at a discounted price, then there is a huge chance more investors apply for the issue resulting in the IPO being oversubscribed. When an IPO is oversubscribed, there is less chance of getting the allotment of shares to everyone including the retail category and HNI category of investors.

Also Read: How to Increase the Chances of IPO Allotment

In such conditions, you can apply in the HNI category to improve your chances of allotment in the IPO. And if you get the allotment of shares in the IPO, shares will be allocated into your demat account before the day of listing. However, if you have not been allocated any shares in the IPO, your money will be refunded into your bank account, or the fund will be unblocked if you have applied in the IPO through the Application Supported by Blocked Amount (ASBA).

Also Read: What are the Top Factors Affecting the Stock Market in India

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