FirstCry shares debut at a 40% premium
FirstCry an online baby and kids’ products’ Store owned by Brainbees Solutions entered the Indian stock exchanges on August 13, 2024. The company had a good opening, and the IPO was well received among investors; the shares were opened for trading at ₹ 651 on NSE and ₹625 on the BSE which is vast 40% and 34% premium over the issue price of ₹ 465. This good performance shows that investors remain confident in the business despite remaining skepticism on profitability.
The IPO which was floated for subscription between August 6 to August 8, 2024 received mediocre response as it was subscribed 12 times. 22 times. The highest interest was shown by the Qualified Institutional Buyers (QIBs) subscribing 19 percent to the issue. That is 30 times the number of shares on offer. Individual investors and other uninformed investors were also decent to reasonable in their interest, bidding 2. 31 times and 4. 68 times, respectively.
FirstCry also put ₹1,626 crore for new fund requirements and the rest ₹2,527 crore through the OFS component of the issue. 73 crore. The proceeds are to be used for the firm’s growth initiatives such as opening of new stores and warehouses, acquisitions, technology and data science for the subsidiaries. Also, that it plans to strengthen its marketing and consider propositions of acquisitions in the future.
Those tend to focus on the company’s diversified and rather firm positions on the dairy products market, as well as on the strong brand image. However, it is worth noting that the company is still unprofitable and heavily dependent upon third-party manufacturers. But these concerns should not be confused with the market’s bullishness about the company’s growth, as evidenced by the successful listing.
