Brainbees Solutions Limited – First Cry IPO View:
Another loss making company IPO after OLA Electric and also IPO size is big around 4,193 Crs. And another negative thing is company will get only INR 1,666 Crs (around 40%) and rest is simply FPO INR 2,527 Cr (around 60%)
IPO Details:
IPO Date: August 6 – August 8
Face Value: INR 2 per share
Price Band: INR 440 to 465 per share
Lot Size: 32 shares
Business overview:
The company offers everything needed for an infant up to the age of 12, including apparel, footwear, baby gear, nursery, diapers, toys, and personal care, amongst others. The company offers products from Indian third-party brands, global brands, and its own brands.
The company has an extensive offering for mothers, babies, and Kids with more than 1.5 million SKUs from more than 7,500 brands on its multi-channel platform across categories including apparel and fashion, toys, books, school supplies, diapers, bath and skincare, nutrition and breastfeeding, health and safety, baby gear and maternity wear
Financial:
FY24 Revenue: 6,575 Crs Vs. 5,731 Cr up by 14% in YoY
PAT24: (321) Crs Vs. (486) Cr loss declined by 51% in YoY
Networth: INR 3,170 Crs Vs. 3,456 Cr down by 9% in YoY
Objects of the issue:
– Establishment of new modern stores under the “BabyHug” brand; and (II) establishment of a warehouse in India;
– Setting up new modern stores under the FirstCry brand and other house brands of the Company; and (II) lease payments for the existing identified modern stores owned and controlled by Digital Age in India
– Investment in Subsidiary FirstCry Trading for overseas expansion by: (I) establishment of new modern stores; and (II) establishment of warehouses in KSA;
View: Although company has first choice has its products from kids despite loss making. It can either be discount listing or miniscule listing gain. Due to the size of the IPO allotment chance is very bright.
