Brainbees Solutions Ltd (Firstcry) IPO: Review, Date & GMP

Brainbees Solutions Limited (Firstcry) IPO - Complete Overview

Brainbees Solutions Limited (Firstcry) IPO a Mainboard IPO is a book-built issue of Rs. 4,193.73 crores by Brainbees Solutions Limited which was established in 2010. It uses its online platform 'FirstCry' to sell items to moms, infants, and kids.

The goal of Brainbees Solutions (Firstcry) is to establish a one-stop shop for parents' requirements in education, community involvement, retail, and content. The company provides everything a baby needs from birth to age 12, including clothing, shoes, baby equipment, a nursery, toys, diapers, and personal hygiene products. 

The company sells goods under its own labels as well as international and Indian third-party brands. With over 1.5 million SKUs from over 7,500 brands on its multichannel platform, the company offers a wide range of products for moms, babies, and kids in categories such as clothing and accessories, toys, books, educational supplies, diapers, bath and skincare, nourishment and breastfeeding, health and safety, baby gear, and maternity wear.

The introduction of BabyHug, one of Brainbees Solutions's house brands, demonstrates the company's excellent brand recognition and the trust of its customers. This is India's leading multi-category brand for mother, baby, and kids items in terms of GMV for the year ending December 2023, according to RedSeer research. Some of its other well-known house brands are Babyoye, Pine Kids, and Cute Walk by BabyHug.

In terms of GMV, Brainbees Solutions (Firstcry) is the biggest specialized online retail platform for mother, baby, and kids' items in the United Arab Emirates. Except for contract manufacturers hired by Globalbees Brands and its subsidiaries, the company maintained a network of more than 900 contract manufacturers in India and other nations for its house brands for the 9 months that ended December 31, 2023, as well as the financial year 2023, 2022, and 2021.

The company plans to launch Firstcry IPO on 6 August 2024.

Brainbees Solutions Limited (Firstcry) IPO Overview

The Firstcry IPO of Rs.4,193.73 crore comprises an offer for sale (OFS) of 5.44 crore Shares amounting to Rs.2,527.73 crore and a Fresh Issue of 3.58 crore Shares (amounting to Rs.1,666.00 crore) out of which 10% is allocated to retail investors, 75% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on August 6, and conclude on August 8. The anticipated listing date for the IPO is Tuesday, August 13, and it will be held on the BSE and NSE. The price band of the Share is Rs.440 to Rs.465.

If You want to apply for this IPO, Click Here to Open a Demat Account.

 

Company Financial

Brainbees Solutions Limited's revenue climbed by 14.72%, while profit after tax (PAT) increased by 33.85% during the fiscal years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2024.

• The company’s total revenue is over Rs.6,575.08 crore.

• The net worth of the company is Rs.3,170.74 crore.

• The company's EBITDA is Rs.70.49 crore.

• The total assets of the company are Rs.7,510.38 crore.
  
  

(Amount in crore)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	7,510.38	7,119.83	6,197.16
Total Revenue	6,575.08	5,731.28	2,516.92
PAT	-321.51	-486.06	-78.69
Net worth	3,170.74	3,456.26	3,527.94
Total Reserves & Surplus	3,081.74	3,367.21	3,439.17
Total Borrowings	462.72	176.47	90.16

 

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in crore)

Net Cash flow in various Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	-42.07	-3,98.98	-1,31.72
Net Cash Flow Investing Activities	62.94	3,04.08	-4,90.58
Net Cash Flow Financing Activities	81.47	-50.61	6,44.37

 

Segment-wise Revenue Bifurcation For The Last Three Fiscals

(Amount in million)

Segment	31 Mar 2024	31 Mar 2023	31 Mar 2022
Preschools	325.71	216.97	69.74

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• The Company's costs for

• • building new, contemporary stores under the "BabyHug" brand

  • building a warehouse in India.

• Expenditure on lease payments for the Company's identified, currently operating modern outlets in India.

• Investments made in its subsidiary Digital Age for

• • building new, contemporary stores under the FirstCry brand and other house brands of the business.

  • paying the lease on the current, designated, modern stores that Digital Age owns and controls in India.

• Investment in FirstCry Trading's subsidiary for international expansion through the construction of-

• • brand-new, contemporary stores

  • warehouses in the Kingdom of Saudi Arabia

• Investment in Globalbees Brands subsidiary to obtain a larger share in its subsidiaries.

• Marketing and sales campaigns.

• Expenses related to technology and data science, such as those associated with server and cloud hosting.

• Financing general business objectives, acquisitions, and other strategic activities in order to achieve inorganic growth.
  
  

Peers of Brainbees Solutions Limited (Firstcry)

There are no listed companies involved in the same category of the comparable size as mentioned in the RHP.

 

Evaluation

The price of this Firstcry IPO is Rs.440 to Rs.465 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024, with EPS of Rs.-6.20 from the last year, the resulting P/E ratio is -75x.

Considering the weighted EPS of Rs.-6.71 for the last three years, the P/E ratio is -69.29x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is NA.

In simple words, the P/E ratio of Brainbees Solutions Limited (Firstcry)-IPO (-75x and -69.29x) can not be compared with its peers as there are no listed peers. 

 

Detailed Video:

 

IPO's Strengths

• According to the RedSeer Report, it is the leading multi-channel retailing platform in India for items for mothers, babies, and kids in terms of GMV for the Financial Year 2024.

• Customers who follow a "research online – purchase offline" shopping pattern also profit from its multi-channel strategy.

• As of March 31, 2024, 2023, and 2022, respectively, the FirstCry mobile application had been downloaded more than 127 million times in India; as of March 31, 2024, 2023, and 2022, respectively, it had been downloaded 97 million times.

• Customers who interacted with its parenting community during the Financial Year 2024 bought products twice as frequently as those who did not interact.

• Customers' attachment to, loyalty to, and faith in the FirstCry brand;

• The blending of partnerships with external brands and the development of expanding home brands;

 

IPO’s Weaknesses

• Its net cash flows have been negative in the past and maybe in the future.

• The company wants to use the funds from Net Proceeds to establish its new, contemporary stores and warehouses in the Kingdom of Saudi Arabia and India, although they have yet to determine the precise sites or properties for these purposes.

• A part of the Net Proceeds may fund inorganic growth initiatives for which a target may not yet be known. They might need to look for other sources of finance if the Net Proceeds intended for inorganic growth efforts prove insufficient to cover the cost of its suggested inorganic acquisition.

• The Net Proceeds will be disbursed gradually, so any delays might have an effect on its business operations and financial performance.

• The company may experience losses in the future as it had in the past, which might hurt both the value of the equity shares and the company.

 

IPO GMP Today

The most recent GMP for Brainbees Solutions Limited (Firstcry)'s IPO is Rs.84.

Brainbees Solutions Limited (Firstcry) IPO timetable (Tentative)

The IPO is scheduled from August 6 to August 8, 2024, with allotment on August 9, 2024,  refund initiation on August 12, 2024, and listing on August 13, 2024.

Events	Date
IPO Opening Date	August 6, 2024
IPO Closing Date	August 8, 2024
IPO Allotment Date	August 9, 2024
Refund Initiation	August 12, 2024
IPO Listing Date	August 13, 2024

 

Brainbees Solutions Limited (Firstcry) IPO Details 

The IPO with a face value of Rs.2 per Share is set to start on August 6, 2024, close on August 8, 2024, and offers a total issue size of 90,187,690 Shares at Rs.440 to Rs.465 per Share with a Lot size of 32 Shares and will be listed at BSE and NSE.

IPO Opening & Closing Date	August 6, 2024 to August 8, 2024
Face Value	Rs.2 per Share
Issue Price	Rs.440 to Rs.465
Lot Size	32 Shares
Issue Size	90,187,690 Shares (aggregating up to Rs.4,193.73 crores).
Offer for Sale	54,359,733 Shares (aggregating up to Rs.2,527.73 crores).
Fresh Issue	35,827,957 Shares (aggregating up to Rs.1,666.00 crores).
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

Brainbees Solutions Limited (Firstcry) IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (32 Shares) amounting to Rs.14880, and 13 Lots (416 Shares) amounting to Rs.193440 respectively, while for HNI investors, the minimum Lot is 14 (448 Shares) amounting to Rs.208,320.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
S-HNI (Min)	14 Lots
S-HNI (Max)	67 Lots
B-HNI (Min)	68 Lots

 

Brainbees Solutions Limited (Firstcry) IPO Reservation

QIB Share Portion	75%
Retail Investors Share Portion	10%
NII Shares Portion	15%

 

 

Promoters and Management of Brainbees Solutions Limited (Firstcry) IPO

The company doesn’t have a promoter.

 

Brainbees Solutions Limited (Firstcry) IPO Lead Managers

• Kotak Mahindra Capital Company Limited

• Morgan Stanley India Company Pvt Ltd

• Bofa Securities India Limited 

• Jm Financial Limited 

• Avendus Capital Pvt Ltd
  
  

Dividend Policy

The company has not paid any dividend in the last 3 Fiscals.

 

Conclusion

The company has experienced negative cash flow in operating activities, financing activities, and investing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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