FirstCry Parent Brainbees Solutions Lists at 40% Premium on D-Street

13 Aug 2024 , 09:55 AM

Brainbees Solutions, the operator of FirstCry, made a strong debut on D-Street, with its shares listing at a 40% premium. On the NSE, the stock opened at ₹651, significantly higher than the issue price of ₹465, while on the BSE, it was listed at ₹625, reflecting a 34.41% premium.

The initial public offering (IPO) of the Pune-based company, which specializes in products for mothers, babies, and kids through its online platform FirstCry, was highly successful. During the subscription period from August 6-8, the IPO was oversubscribed 12.22 times. The offering received overwhelming support from qualified institutional buyers (QIBs), who subscribed 19.30 times their allotted quota. Non-institutional investors (NIIs) and retail investors also showed strong interest, subscribing to 4.68 times and 2.31 times of their respective portions.

Brainbees Solutions raised a total of ₹4,194 crore through the IPO, comprising a fresh issue of ₹1,666 crore and an offer-for-sale of 5.4 crore equity shares worth ₹2,528 crore by its corporate shareholders.

The company plans to utilize the net proceeds from the fresh issue to establish stores under the ‘BabyHug’ brand, invest in subsidiaries, expand internationally, and enhance its sales and marketing efforts. Additionally, a portion of the funds will be allocated for general corporate purposes.