Brainbees Solutions (Firstcry) IPO: A Quick Overview

Timeline

IPO Open Date:	August 6, 2024
IPO Close Date:	August 8, 2024
Basis of Allotment:	August 9, 2024
Refunds:	August 12, 2024
Credit to Demat Account:	August 12, 2024
IPO Listing Date:	August 13, 2024

About Company Brainbees Solutions Limited (Firstcry)

Brainbees Solutions Limited is the parent company of India’s leading online retailer for baby and children products, Firstcry. Founded in 2010, the company has rapidly grown to become a household name for parents across the country.

Core Business:

• Online Retail: Firstcry is the flagship brand, offering a wide range of products for babies, toddlers, and children, including apparel, toys, baby care products, and more.
• Offline Presence: The company has expanded its reach through a network of physical stores, complementing its online platform.
• Value-Added Services: Firstcry offers additional services like content, community engagement, and educational resources for parents.

Market Position:

• Firstcry is India’s largest online retailer for baby and children products, with a significant market share.
• The company has a strong brand presence and enjoys high customer trust and loyalty.
• Firstcry’s extensive product range and competitive pricing have contributed to its success.

Future Outlook:

• Expanding product categories and geographical reach are key growth areas for Firstcry.
• The company is likely to focus on private label products and exclusive brands to enhance profitability.
• Strengthening its omnichannel presence through a combination of online and offline channels is another strategic priority.

Firstcry’s IPO is expected to generate significant interest due to its strong brand, large customer base, and growth prospects in the organized baby and children products market.

Market Position:

Here are some resources to learn more about company

• Read DRHP Here

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Objective

The Company proposes to utilise the Net Proceeds towards funding the following objects:

• Expenses of the Company for: (I) establishment of new modern stores under the “BabyHug” brand; and (II) establishment of a warehouse in India;
• Expenditure on lease payments for existing identified modern stores owned and operated by the Company in India;
• Investments in its Subsidiary Digital Age for (I) setting up new modern stores under the FirstCry brand and other house brands of the Company; and (II) lease payments for the existing identified modern stores owned and controlled by Digital Age in India;
• Investment in Subsidiary FirstCry Trading for overseas expansion by: (I) establishment of new modern stores; and (II) establishment of warehouses in KSA;
• Investment in Subsidiary Globalbees Brands for the acquisition of an additional stake in its Subsidiaries;
• Sales and marketing initiatives;
• Technology and data science costs, including cloud and server hosting costs; and
• Financing of inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.

POSITIVE

• Strong Brand Recognition: Firstcry is a well-established brand in the Indian market, enjoying high consumer trust and loyalty.
• Large Customer Base: The company boasts a substantial customer base, providing a solid foundation for revenue generation.
• Growing Market: The organized baby and children products market in India is expanding rapidly, offering growth opportunities.
• Omnichannel Presence: Firstcry’s combination of online and offline channels provides a wider reach and caters to diverse customer preferences.

NEGATIVE

• Intense Competition: The baby and children products market is highly competitive, with both organized and unorganized players
• Profitability: The company has reported losses in recent years, raising concerns about its ability to achieve profitability.
• Economic Downturns: Consumer spending on discretionary products like baby and children products can be affected during economic downturns.
• Supply Chain Challenges: Ensuring a consistent supply of products can be challenging, especially for imported items.

So,How Does Brainbees Solutions (Firstcry) IPO Fare in Terms of Financials ?

Financial Details

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	7,284.27	7,119.83	6,197.16	4,078.17
Revenue	4,890.02	5,731.28	2,516.92	1,740.06
Profit After Tax	-278.25	-486.06	-78.69	215.94
Net Worth	3,183.20	3,456.26	3,527.94	3,437.06
Reserves and Surplus	3,093.59	3,367.21	3,439.17	3,359.27
Total Borrowing	276.29	176.47	90.16	16.94
Amount in ₹ Crore

Here are some key observations:

• Assets have nearly tripled from ₹959.14 crore in 2022 to ₹2,592.19 crore in 2024.
• Revenue has grown steadily, reaching ₹3,066.19 crore in 2024, reflecting an increase of more than 160% over the past three years.
• Profit after tax has also increased, reaching ₹304.91 crore in 2024.

Brainbees Solutions (Firstcry) IPO Valuation :

KPI	Values
ROE
ROCE
Debt/Equity
RoNW	-8.65
P/BV
PAT Margin (%)

Brainbees Solutions (Firstcry) IPO – SWOT Analysis

Strengths

• Strong Brand Recognition: Firstcry enjoys a strong brand image and customer loyalty in the baby and children products market.
• Large Customer Base: The company has a significant customer base, providing a solid foundation for revenue generation.
• Omnichannel Presence: Firstcry’s combination of online and offline channels enhances market reach and customer convenience.
• Diversified Product Portfolio: Offering a wide range of products reduces reliance on any single category.

Weaknesses

• Profitability Concerns: The company has reported losses in recent years, indicating challenges in achieving profitability.
• Dependency on Imports: Reliance on imports for certain products can expose the company to exchange rate fluctuations and supply chain disruptions.
• Intense Competition: The baby and children products market is highly competitive, with both organized and unorganized players

Opportunities

• Expanding Product Categories: Firstcry can explore new product categories to cater to the evolving needs of parents.
• Geographical Expansion: Expanding into new markets can drive growth and increase customer base.
• Private Label Products: Developing own brands can improve profit margins and strengthen brand loyalty.
• Digital Initiatives: Leveraging technology for personalized recommendations, customer engagement, and data analytics can enhance customer experience.

Threats

• Economic Downturns: Economic slowdown can impact consumer spending on discretionary products.
• Changing Consumer Preferences: Evolving preferences in parenting and child care can affect product demand.
• Intense Competition: The entry of new players and aggressive marketing strategies by competitors can erode market share.
• Supply Chain Disruptions: Global supply chain challenges can impact product availability and costs.

COMPETITIVE ANALYSIS: MARKET PEERS

• Amazon India: A dominant e-commerce player offering a wide range of products, including baby and children’s items.  
• Flipkart: Another major e-commerce platform with a strong presence in the baby and children’s category.  
• Reliance Retail: Backed by a vast retail network, Reliance offers a range of products, including baby and children’s items.
• Local and Regional Players: Numerous local and regional players operate in the baby and children’s products market, offering competition at the regional level.

Brainbees Solutions (Firstcry) IPO GMP

• Grey market premium as on 06-08-2024 = Rs 44/ Share

Disclaimer:

• IPO Grey Market Premium (Brainbees Solutions (Firstcry) IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Brainbees Solutions (Firstcry) IPO

🔴 Live Subscription Status 🔴

08/08/2024 5:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	2,70,36,953	0.00	0.03	19.30
Non Institutional Investors(NIIs)	1,35,18,476	0.08	0.30	4.68
Retail Individual Investors(RIIs)	90,12,317	0.46	1.06	2.31
Employee	71,258	1.79	3.44	6.57
Total	4,96,39,004	0.11	0.30	12.22

FINAL TAKEAWAY

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