FirstCry Shares Hit All-Time Low, Co Pays INR 1.74 Cr For GST Mismatch

Shares of omnichannel kids brand FirstCry’s parent Brainbees Solutions slumped over 6% to hit an all-time low at INR 520.25 apiece on Monday (November 11). 

Earlier on Sunday, the company said that the search and inspection operation by the assistant commissioner of state tax of Mumbai, which began on November 6, concluded on November 10.

“The company has fully cooperated with the officials and has responded to all the clarifications and details sought by them,” it said in an exchange filing, adding that it payed INR 1.74 Cr (including interest) on account of mismatch in GST returns during the financial years 2018-19, 2019-20, 2020-21 and 2022-23.

“The officials had also raised some queries with respect to the GST implications on the amount paid towards IPO expenses (in respect of expenses incurred towards fresh issuance of shares during the IPO). The company has provided suitable explanations in this regard,” it added

Shares of Brainbees were trading 6.34% lower at INR 529.10 on the BSE at 03:10 PM.

Notably, the downward movement in the company’s shares began on November 7 after it informed the exchanges that it was under the radar of the tax authorities. 

In its exchange filing, the company then said that the inspection into its affairs was initiated at its head office in Pune and one of its warehouses in Bhamboli. 

The company earlier received show notices from the Income Tax department pertaining to ESOP expenses of INR 79.7 Cr for assessment years (AY) 2018-19 to 2021-22.

FirstCry is an omnichannel baby and kids marketplace which was founded in 2010 by Supam Maheshwari and Amitava Saha. The company was listed on BSE and NSE at 34% and 40% premium, respectively, earlier this year in August.

The company trimmed its consolidated net loss by 31% to INR 75.68 Cr in the first quarter of financial year 2024-25 (Q1 FY25) from INR 110.42 Cr in the year-ago period. Operating revenue grew 10% to INR 1,652.07 Cr during the quarter under review from INR 1,496.93 Cr in Q1 FY24. 

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