Considering the upper price band of Rs 549, the stock is expected to trade at a premium of 18% over the issue price.
However, it is important to note that grey market premiums are only one indicator of how a company’s shares compare in the over-the-counter market and are subject to change rapidly.
FirstCry’s IPO went off without a hitch on the final day of the bidding process with over 12 times subscription at closing.
Prior to the opening of the issue, the company raised Rs 1,886 crore from 71 anchor investors. Notable investors who participated in the anchor round include SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, the Government of Singapore, ADIA and Goldman Sachs. The company, backed by SoftBank and Premji Invest, said it would use the net proceeds from the IPO to set up new modern stores under the brand ‘BabyHug’, for investment in the Digital Age subsidiary, for overseas expansion and for sales and marketing initiatives. Brainbees Solutions is the largest multi-channel retail platform for mother, baby and children products, with a growing presence in select international markets. The company launched the FirstCry platform as a one-stop destination for parenting needs spanning commerce, content, community engagement and education. It offers a wide range of products including apparel, footwear, baby items, nursery items, diapers, toys and personal care from third-party Indian brands, global brands and its own brands.
They offer over 1.6 million SKUs from over 7,500 leading brands from India and around the world. The company seeks to develop multi-year relationships with mothers, from the conception of the baby till the child turns approximately 12 years old.
In FY24, the company reported a 15% growth in operating revenue to Rs 6,481 crore, while it reduced losses by 34% to Rs 321 crore during the same period.
Over the last three financial years, the company’s operating revenue has grown to Rs 6,481 crore in FY24 from Rs 2,401 crore in FY22.
Kotak Investment Bank, Morgan Stanley, BofA Securities, JM Financialand Avendus are the lead bookkeepers, while Link Intime India is the registrar.
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(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of Economic Times)
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