The Firstcry IPO is launching today. Here’s a look at the Grey Market Premium (GMP), a review, and other relevant details. Should you consider applying for shares of Brainbees Solutions?
The initial public offering (IPO) for Brainbees Solutions Limited, the parent company of the Firstcry brand, has officially opened in the Indian primary market today. The IPO will be available for subscription until August 8, 2024 (Thursday). The price band for the Firstcry IPO has been set at Rs.440 to Rs.465 per equity share, and the shares are slated to be listed on both BSE and NSE. Brainbees Solutions aims to raise Rs.4,193.73 crore through this IPO, with Rs.1,666 crore expected from the issuance of fresh shares. Additionally, the shares are currently trading at a premium of Rs.84 in the grey market.
Key details for the Firstcry IPO are as follows:
According to market observers, Brainbees Solutions' shares are currently trading at a Rs.84 premium in the grey market today.
The price band for the Firstcry IPO, set by its parent company Brainbees Solutions Limited, is Rs.440 to Rs.465 per equity share.
The Firstcry IPO has launched today and will be available for subscription until August 8, 2024.
The Firstcry IPO aims to raise Rs.4,193.73 crore, with Rs.1,666 crore expected to be raised through the issuance of new shares.
For the Firstcry IPO, applications can be made in lots, with each lot consisting of 32 Brainbees Solutions shares.
Share allotment for the Firstcry IPO is anticipated to take place on Friday, August 9, 2024.
Link Intime India Private Limited has been designated as the official registrar for the Firstcry IPO.
The lead managers for the Firstcry IPO are Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India, JM Financial, and Avendus Capital.
The Firstcry IPO is set to list on the BSE and NSE. Following the 'T+3' listing rule, the IPO is expected to debut on the Indian stock market on Tuesday, August 13, 2024.
In a review of the Firstcry IPO, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, recommends applying for the IPO for potential listing gains. He noted, "Although the company has a global presence and a growing top line, it has recently reported losses. The issue is priced at a negative P/E due to its negative earnings. We expect a subdued listing with a premium of approximately 20 percent."
Discussing the fundamentals of the Firstcry IPO, Akriti Mehrotra, Research Analyst at StoxBox, remarked, "FirstCry, a leader in multi-channel retail for children's and maternal products, is notable for its strong customer engagement via integrated physical and online platforms. While the company benefits from robust network effects and efficient inventory management, it faces significant challenges. Despite a 15% revenue increase to Rs.6,575.1 crore in FY24, FirstCry reported a loss of Rs.321.5 crore and saw its debt rise sharply from Rs.176.5 crore to Rs.462.7 crore. The current fundraising effort is aimed at operational needs rather than reducing debt. Ongoing negative cash flows, regulatory issues, and legal troubles further strain the company's financial position."
Posted on : 06-08-2024