FirstCry’s parent Brainbees Solutions IPO gets subscribed 11% on first day of offer

New Delhi: The initial public offer of e-commerce platform FirstCry's parent Brainbees Solutions got subscribed 11% on the first day of bidding on Tuesday.

The Rs 4,194 crore IPO received bids for 53,36,320 shares against 4,96,39,004 shares on offer, as per NSE data.

Retail Individual Investors (RIIs) part received 46% subscription while non-institutional investors category got subscribed 8 per cent. Qualified Institutional Buyers (QIBs) did not receive significant bids.

Brainbees Solutions on Monday said it has collected Rs 1,886 crore from anchor investors.

The Initial Public Offer (IPO), with a price band of Rs 440-465 a share, will close for public subscription on August 8.

The public issue of Pune-based Brainbees Solutions consists of a fresh issue of equity shares valued at Rs 1,666 crore and an OFS (offer for sale) component of up to 5.44 crore shares worth Rs 2,528 crore by existing shareholders. This takes the total issue size to Rs 4,194 crore.

Under the OFS, SVF Frog, a Cayman Islands-registered entity of Softbank, will sell 2.03 crore equity shares of Brainbees Solutions, and automaker Mahindra & Mahindra (M&M) will offload 28.06 lakh shares of the company.

Currently, Softbank holds 25.55% stake in Brainbees Solutions, and M&M owns 10.98% stake.

Apart from Softbank and M&M, other selling shares in the OFS are PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, and Schroders Capital. Further, individuals selling shareholders include veteran industrialist Ratan Tata.

The company will use net proceeds from the fresh issue for setting up stores under the brand 'BabyHug', investment in subsidiaries, overseas expansion, and sales and marketing initiatives. Besides, a portion will be used for corporate general purposes.

Brokerage houses have pegged the company's market capitalisation at Rs 24,142 crore post issue.

Launched in 2010, FirstCry is India's largest multi-channel, multi-brand retailing platform for mothers', babies' and kids' products. It was set up to create a one-stop destination for parenting needs across commerce, content, community engagement, and education, based on brand affinity, loyalty and trust of customers.

Further, FirstCry established itself in the UAE and Saudi Arabia in 2019 and 2022, respectively.

Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, JM Financial and Avendus Capital are the book-running lead managers to the issue.