FirstCry IPO details

FirstCry Sets Price Band for IPO: Detailed Overview

FirstCry, a leading player in the baby and kids’ product sector in Asia, is gearing up for its Initial Public Offering (IPO). The company, operating under Brainbees Solutions Ltd, has set an attractive price band for its shares and has detailed its plans for the upcoming public issue. Here’s a comprehensive breakdown of the IPO details, financial performance, and market positioning.

1. IPO Details
   • Price Band: The shares for FirstCry’s IPO are priced between Rs 440 and Rs 465 each.
   • Issue Dates: The IPO opens on August 6, with anchor bidding starting on August 5. The issue closes on August 8.
   • Timeline: Allotment basis will be finalized on August 9, with refunds and shares credited to accounts by August 12. The listing is scheduled for August 13.
   • Issue Size: The IPO includes a fresh issue of Rs 1,666 crore and an Offer for Sale (OFS) valued at Rs 2,527.72 crore. The total issue size amounts to Rs 4,187.72 crore, with a market cap of Rs 22,475 crore (approximately $2.68 billion).
2. Company Background
   • Initial Filing: FirstCry initially filed its draft IPO papers with SEBI in December but withdrew them due to requests for more clarity on key performance indicators (KPIs).
   • Refiling: The company later refiled with detailed financials and performance metrics.
3. Financial Performance
   • Revenue: For FY24, FirstCry reported a revenue of Rs 6,480.86 crore, up from Rs 5,632.54 crore in FY23.
   • Losses: The company incurred a loss of Rs 321.51 crore in FY24, compared to Rs 486.01 crore in FY23.
   • EBITDA: The EBITDA improved to Rs 70.49 crore in FY24 from an EBITDA loss of Rs 262.90 crore in FY23.
   • GMV: Gross Merchandise Value (GMV) rose to Rs 9,121.13 crore in FY24 from Rs 7,257.64 crore in FY23.
   • Cash Reserves: The company’s cash reserves have been impacted by high capital expenditures and operational losses.

1. Market Position and Operations
   • Market Leadership: FirstCry is a leading multi-channel retailer for baby, mother, and kids’ products in India by GMV.
   • Operations: The company operates through an omnichannel model, including online sales, company-owned and franchise stores, and general trade distribution.
   • Product Range: Offers over 1.65 million SKUs from 7,580 brands, including apparel, footwear, and baby gear.
   • Store Network: Operates 1,063 FirstCry and BabyHug stores across 533 cities, with a total retail space of 2.12 million square feet.
2. Strategic Alliances and Expansion
   • Partnerships: Collaborates with major brands like Funskool, Farlin, Mattel, Pampers, and Disney.
   • Investors: Has received investments from Saif Partners, Valiant Capital Partners, and IDG Ventures India.
   • International Expansion: Plans to enter markets in the UAE and Saudi Arabia (KSA).
3. Investor Insights
   • Strengths: Strong market leadership, extensive product catalogue, and innovative customer acquisition strategies.
   • Concerns: Continued financial losses, high capital expenditure, and competitive market risks. The broad use of IPO proceeds for new stores, international expansion, and technology raises concerns about focus and financial stability.

Positives of the Content

1. Market Leadership: FirstCry’s strong position in Asia’s baby and kids’ market is a key advantage, supported by a vast product range and significant market presence.
2. Revenue Growth: Positive revenue and GMV growth signals the company’s expanding market reach and operational success.
3. Investor Confidence: Strategic alliances and past investments indicate robust investor confidence and company credibility.
4. Expansion Opportunities: The planned international expansion into UAE and KSA presents new growth avenues and diversification benefits.

Conclusion

FirstCry’s IPO offers an exciting opportunity for investors to participate in a leading player in the baby and kids’ product sector. With a strong market presence, substantial revenue growth, and a broad product range, the company is well-positioned in the market. However, potential investors should carefully consider the financial risks associated with the company’s ongoing losses, high capital expenditure, and competitive market dynamics before making investment decisions.

FAQs

1. What is the price band for FirstCry’s IPO?
   • The price band for FirstCry’s IPO is set between Rs 440 and Rs 465 per share.
2. When will the IPO open and close?
   • The IPO opens on August 6, with anchor bidding starting on August 5. It closes on August 8.
3. What is the total issue size of the IPO?
   • The total issue size is Rs 4,187.72 crore, which includes a fresh issue of Rs 1,666 crore and an OFS valued at Rs 2,527.72 crore.
4. What are the key financial highlights for FirstCry?
   • For FY24, FirstCry reported a revenue of Rs 6,480.86 crore, with a loss of Rs 321.51 crore and an EBITDA of Rs 70.49 crore. The GMV increased to Rs 9,121.13 crore.
5. What is the strategic significance of this IPO?
   • The IPO allows FirstCry to raise funds for expanding its store network, investing in technology, and entering international markets, while offering investors a chance to invest in a leading retailer in the baby and kids’ sector.
6. What are the main concerns associated with the IPO?
   • Concerns include the company’s ongoing financial losses, high capital expenditure for new stores, and the competitive market environment. Investors should also consider the implications of using IPO proceeds for various growth initiatives.

FirstCry IPO details

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