FirstCry IPO: Public Issue Subscribed 11% On Day 1

FirstCry To Invest Over INR 100 Cr In Its UAE Subsidiary

SUMMARY

FirstCry’s IPO received bids for 53.43 Lakh shares as against 4.96 Cr shares on offer

While the employees’ portion was subscribed 1.8X, the shares reserved for retail individual investors were subscribed 46%

FirstCry’s IPO, which closes on August 8, comprises a fresh issue of shares worth up to INR 1,666 Cr and an offer-for-sale component of up to 5.4 Cr equity shares

The initial public offering (IPO) of kids-focussed omnichannel retailer FirstCry got off to a quiet start on August 6 (Tuesday) amid the volatility in the equity markets due to global headwinds.

FirstCry’s IPO was subscribed 11% on the first day of bidding, with employees leading the way. As per the BSE data, the public offer received bids for 53.43 Lakh shares as against 4.96 Cr shares on offer.

The portion reserved for employees received bids for 1.27 Lakh shares as against 71,258 shares on offer, resulting in 1.8X subscription. Retail investors placed bids for 41.67 Lakh shares as against 90.12 Lakh shares on offer. This translated to a 46% subscription.

Non-institutional investors’ (NIIs) portion was subscribed 8%, receiving bids for 10.45 Lakh shares as against 1.35 Cr shares on offer. Qualified institutional buyers (QIBs) placed bids for just 2,752 shares against 2.7 Cr shares on offer.

On August 5 (Monday), FirstCry raised INR 1,885.82 Cr from 71 anchor investors.

FirstCry has set a price range of INR 440 to INR 465 per equity share for the IPO, which closes on August 8 (Thursday). At the upper end of the price band, FirstCry’s parent Brainbees Solutions aims to raise INR 4,193 Cr.

The IPO comprises a fresh issue of shares worth up to INR 1,666 Cr and an offer-for-sale (OFS) component of up to 5.4 Cr equity shares worth up to INR 2,527 Cr.

The startup first filed its draft red herring prospectus (DRHP) with SEBI in December last year. However, it later withdrew its IPO papers after the market regulator expressed concern that some of the key metrics were missing from its DRHP.

Following this, FirstCry refiled its DRHP in April this year and got SEBI’s nod for the public issue in June.

FirstCry posted a consolidated net loss of INR 321.5 Cr in the financial year 2023-24 (FY24), down almost 34% YoY. Operating revenue stood at INR 6,480.8 Cr during the year under review compared to INR 5,632.5 Cr in FY23.