Brainbees Solutions Limited (FirstCry) IPO - Complete Overview

 Introduction

Brainbees Solutions Limited, known for its online platform FirstCry, is launching a Mainboard IPO with a book-built issue of ₹4,193.73 crores. Established in 2010, FirstCry caters to the needs of moms, infants, and kids by offering a wide range of products.

FirstCry IPO Overview

Brainbees Solutions aims to be a one-stop shop for parents' needs in education, community involvement, retail, and content. The company offers products for children from birth to age 12, including clothing, shoes, baby equipment, nursery items, toys, diapers, and personal hygiene products. They sell goods under their own labels and international and Indian third-party brands. With over 1.5 million SKUs from 7,500+ brands, FirstCry provides an extensive range of products for moms, babies, and kids.

Brand Recognition

One of FirstCry IPO notable house brands, BabyHug, is India's leading multi-category brand for mother, baby, and kids items in terms of GMV for the year ending December 2023, according to RedSeer research. Other popular house brands include Babyoye, Pine Kids, and Cute Walk by BabyHug.

 Market Presence

Brainbees Solutions is the largest specialized online retail platform for mother, baby, and kids' items in the UAE. The company maintains a network of over 900 contract manufacturers in India and other countries for its house brands, excluding those hired by Globalbees Brands and its subsidiaries.

 IPO Details

The IPO will launch on August 6, 2024, and close on August 8, 2024. It comprises an offer for sale (OFS) of 5.44 crore shares worth ₹2,527.73 crores and a fresh issue of 3.58 crore shares worth ₹1,666.00 crores. The IPO is allocated 10% to retail investors, 75% to institutional investors, and 15% to non-institutional investors. The price band for the shares is ₹440 to ₹465, with an anticipated listing date on August 13, 2024, on the BSE and NSE.

 Financial Overview

FirstCry IPO revenue increased by 14.72%, and profit after tax (PAT) grew by 33.85% during the fiscal years ending March 31, 2024, and March 31, 2023. The company's total revenue for the financial year ending March 31, 2024, was ₹6,575.08 crores, with a net worth of ₹3,170.74 crores and EBITDA of ₹70.49 crores. Total assets amounted to ₹7,510.38 crores.

 Objectives of the Issue

The net proceeds from the issue will be used for:

- Building new, contemporary stores under the "BabyHug" brand.

- Constructing a warehouse in India.

- Lease payments for modern outlets in India.

- Investments in subsidiary Digital Age for store and warehouse development.

- International expansion through FirstCry Trading in Saudi Arabia.

- Marketing and sales campaigns.

- Technology and data science expenditures.

- Financing general business objectives and acquisitions for inorganic growth.

 Competitive Analysis

Brainbees Solutions is unmatched in its category, with no listed companies of comparable size mentioned in the RHP.

 Strengths and Weaknesses

Strengths:

- Leading multi-channel retailing platform for mother, baby, and kids items in India (GMV, FY 2024).

- Strong brand loyalty and recognition.

- Extensive product range and partnerships with external brands.

 Weaknesses:

- Historical negative cash flows in various activities.

- Uncertainty in establishing new stores and warehouses.

- Potential future losses impacting equity value.

 IPO Schedule (Tentative)

 Event                          Date         

 IPO Opening Date    August 6, 2024 |

 IPO Closing Date     August 8, 2024 |

 Allotment Date        August 9, 2024 |

 Refund Initiation     August 12, 2024 |

 Listing Date            August 13, 2024 |

 Conclusion

Brainbees Solutions Ltd (FirstCry) IPO offers a significant opportunity for investors. With its strong market presence, extensive product range, and brand recognition, the company aims to utilize IPO proceeds to expand and enhance its business operations. If you are interested in this IPO, ensure to follow the schedule and consider opening a Demat account to apply.