Brainbees Solutions IPO: Know About FirstCry’s Parent Firm

Firstcry's parent company, Brainbees Solutions Limited, filed a DRHP and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 1816 Crore of equity shares and an OFS of up to 54,391,592. The face value is reported as Rs 2 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon. At the same time, the first cry price band will be declared soon.

About the Company

Firstcry parent company, Brainbees Solutions Limited, is India's biggest multi-channel retailing platform for, Babies', Mothers', and Kids' products, in terms of Gross merchandises value (GMV), for the year ending December 2023, according to the RedSeer Report, with a growing presence in select international markets. In India, they sell Mothers', Babies' and Kids' products through their online platform, company-owned modern stores, franchisee-owned modern stores and general trade retail distribution. The firm launched the FirstCry platform in India in 2010 with the goal of creating a one-stop destination for parenting needs across commerce, content, community engagement, and education. They have expanded internationally in select markets, establishing a presence in UAE and KSA in 2019 and 2022, respectively, where they aim to replicate India's playbook. According to the RedSeer Report, the firm has been the largest specialist online mothers', babies, and kids' product retail platform in UAE, in terms of GMV, for the year.

Objectives of the Public Offering

The company plans to use the Net Proceeds for a multi-part growth strategy. This includes expanding its physical presence in India with new modern stores under the 'BabyHug' brand and a central warehouse. Additionally, funds will be directed towards lease payments for existing stores. The company's subsidiaries, Digital Age and FirstCry Trading will also benefit from investments to establish new stores under the FirstCry and other home brand names, along with covering lease payments for existing stores. Looking outward, FirstCry Trading is all set for overseas expansion in KSA with new stores and warehouses. The Net Proceeds will further fuel acquisitions of additional stakes in step-down subsidiaries through Globalbees Brands. Finally, the company acknowledges the importance of marketing initiatives, technology infrastructure, and strategic acquisitions for future success, allocating funds towards these areas as well.

Financials of the Company

In the period that ended on March 31, 2023, the company's assets amounted to Rs 7119.827 Crore, which is an increase of approximately 14.87% from the previous year's Rs 6197.163 Crore. Revenue experienced a substantial surge, reaching Rs 5632.539 Crore, marking a significant rise of about 134.21% compared to the prior year's Rs 2401.288 Crore. However, the profit after tax for the same period showed a decrease to Rs -486.056 Crore, reporting a decline of approximately 517.43% from the previous year's Rs -78.685 Crore. Additionally, total borrowing increased to Rs 176.474 Crore, up from Rs 90.162 Crore in the previous year.

Key Performance Indicators

Key performance indicators of the company reported a return on net worth of -12.76 % and a profit after-tax margin of -8.63%. Keep in mind the stats for the fiscal year that ended March 2023. If we look at the EBITDA margin, it is reported as 4.67% for the same FY.

Lead manager(s), Registrar of IPO & Promoters of the Company

The IPO is managed by Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, BofA Securities India Limited, JM Financial Limited and Avendus Capital Private Limited, which is the book-running lead manager of this public issue. Link Intime India Private Limited has been appointed as the registrar for the issue, while the company said that they do not have an identifiable promoter - mentioned in DRHP.