FirstCry's Parent Brainbees IPO Subscribed 30% on Day 2

New Delhi, Aug 7 (PTI) The initial public offer of e-commerce platform FirstCry's parent Brainbees Solutions received 30 per cent subscription on the second day of bidding on Wednesday.

The Rs 4,194 crore initial share sale got bids for 1,47,37,568 shares against 4,96,39,004 shares on offer, as per NSE data.

The portion for Retail Individual Investors (RIIs) received 1.06 times subscription while the category for non institutional investors got subscribed 30 per cent. The Qualified Institutional Buyers (QIBs) part fetched 3 per cent subscription.

Brainbees Solutions on Monday said it has collected Rs 1,886 crore from anchor investors.

The Initial Public Offer (IPO), with a price band of Rs 440-465 a share, will close for public subscription on August 8.

The public issue of Pune-based Brainbees Solutions consists of a fresh issue of equity shares valued at Rs 1,666 crore and an OFS (offer for sale) component of up to 5.44 crore shares worth Rs 2,528 crore by existing shareholders. This takes the total issue size to Rs 4,194 crore.

Under the OFS, SVF Frog, a Cayman Islands-registered entity of Softbank, will sell 2.03 crore equity shares of Brainbees Solutions, and automaker Mahindra & Mahindra (M&M) will offload 28.06 lakh shares of the company.

Currently, Softbank holds 25.55 per cent stake in Brainbees Solutions, and M&M owns 10.98 per cent stake.

Apart from Softbank and M&M, others selling shares in the OFS are PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, and Schroders Capital. Further, individuals selling shareholders include veteran industrialist Ratan Tata.

The company will use net proceeds from the fresh issue for setting up stores under the brand 'BabyHug', investment in subsidiaries, overseas expansion, and sales and marketing initiatives. Besides, a portion will be used for corporate general purposes.

Brokerage houses have pegged the company's market capitalisation at Rs 24,142 crore post issue.

Launched in 2010, FirstCry is India's largest multi-channel, multi-brand retailing platform for mothers', babies' and kids' products. It was set up to create a one-stop destination for parenting needs across commerce, content, community engagement, and education, based on brand affinity, loyalty and trust of customers.

Further, FirstCry established itself in the UAE and Saudi Arabia in 2019 and 2022, respectively.

Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company, BofA Securities India, JM Financial and Avendus Capital are the book-running lead managers to the issue.