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The initial public offering (IPO) of Brainbees Solutions, which operates FirstCry, has displayed a subdued response from investors on the second day of bidding, August 7. According to the latest subscription data, the initial public offer has attracted bids for 1.47 crore equity shares, which amounts to 30% of the total offer size of 4.96 crore shares. The initial public offer, launched on August 6, aims to raise ₹4,193.7 crore, with shares priced between ₹440 and ₹465 each.
The offering includes a fresh issuance of shares worth ₹1,666 crore and an offer-for-sale of 5.4 crore shares valued at ₹2,527.7 crore from existing shareholders. Retail investors have shown notable interest in the initial public offer, subscribing 1.06 times their allocated portion. However, non-institutional bidders and qualified institutional buyers have shown a more lukewarm response, with subscriptions at 0.30 times and 0.03 times their respective portions.
Employees of Brainbees Solutions have been particularly enthusiastic, bidding 3.44 times the reserved portion, with shares offered at a ₹44 discount to the final issue price. The company has successfully raised ₹1,886 crore from anchor investors, including prominent institutions such as the Singapore government, Abu Dhabi Investment Authority, and various mutual funds.
The funds raised from the initial public offer will be allocated towards expanding and modernizing stores, lease payments for existing stores, and investments in subsidiaries. Despite posting a net loss of ₹321.5 crore for fiscal 2024, a decrease from the previous year’s loss of ₹486 crore, FirstCry saw a 15% increase in revenue, reaching ₹6,480.86 crore. The initial public offer is scheduled to conclude on August 8.