Launch of First Cry IPO: Should You Invest in Firstcry IPO? Key Facts and Expert Opinions
Brainbees Solutions Limited, the parent company of Firstcry launched its initial public offering (IPO) on 7th August. This IPO will be available for subscription until August 8, 2024. Here we break down important details. We also provide considerations for potential investors.
IPO Details
The Firstcry IPO is priced between Rs.440 and Rs.465 per equity share. By 1:21 PM on the first day IPO had been subscribed 0.07 times. Retail portion is at 0.32 times. Non-institutional investor segment stands at 0.04 times. Brainbees Solutions goal is to raise Rs.4,193.73 crore through this IPO. Rs.1666 crore is coming from issuance of new shares. Investors can apply in lots. Each lot contains 32 shares. Shares expected to be listed on BSE and NSE on August 13, 2024. The allotment date is set for August 9, 2024. Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India, JM Financial and Avendus Capital are lead managers for IPO. Link Intime India Private Limited serves as official registrar.
Grey Market Premium (GMP)
Currently shares of Brainbees Solutions are trading at a premium of Rs.84 in the grey market. This indicates positive investor sentiment toward IPO.
Company Overview
Brainbees Solutions known for Firstcry brand, is leading retailer for children’s and maternity products. Inspite of a growing presence and a 15% revenue increase to Rs.6575.1 crores in FY24, the company reported a loss of Rs.321.5 crores. Its debt has also risen from Rs.176.5 crores to Rs.462.7 crores. Funds raised from this IPO are intended to support operational needs. They are not aimed at reducing debt.
Expert Opinions
Expert advises investors to apply for potential listing gains. Despite company losses and negative earnings, a 20% premium is anticipated. A Research Analyst acknowledges Firstcry’s strong market position. She also notes efficient inventory management. However, she highlights the company’s financial challenges. These include negative cash flows, regulatory issues and legal troubles.
Should You Apply?
Investors seeking listing gains might find this IPO appealing due to the current grey market premium and anticipated positive listing performance. However long-term investors should consider company’s financial health and rising debt. Ongoing losses also warrant attention. It is important to conduct thorough research. Consider your financial goals before investing.
In summary, Firstcry’s IPO offers mix of potential short-term gains and long-term risks. Assessing both aspects will help you make informed investment decision.
