Limited Time Offer
Get $1000 towards your
first investment
Start investing in private markets with Linqto – your access to disruptive startups and pre-IPO companies.
*Terms and conditions apply. See details
FirstCry, India's largest multi-channel retailer for baby and children's products, has launched its initial public offering (IPO) with a price band of ₹440-465 per share. The ₹4,193-crore public issue, which closes today, consists of a fresh issue worth ₹1,666 crore and an offer for sale of up to 5.44 crore shares by existing shareholders. However, the IPO has received a lukewarm response so far, with the issue subscribed only 0.30 times at the end of Day 2.
The company, operated by Brainbees Solutions Ltd, plans to use the net proceeds from the fresh issue to expand its retail presence, invest in subsidiaries, and fund international expansion. FirstCry has established itself as a leading player in the organized childcare products market, which is expected to grow at a CAGR of 12-14% between 2024 and 2028.
Despite its strong market position, the IPO valuation of around $2.9 billion is lower compared to the company's previous valuation of $3.5 billion in 2022. This reduced valuation, according to investment bankers and the company's founder, reflects current investor appetite and market conditions.
Key investors in FirstCry, including SoftBank and Mahindra & Mahindra, are partially divesting their stakes through the offer for sale. The company has also raised ₹1,886 crore from anchor investors, including prominent funds and financial institutions.
While FirstCry has shown improving operating metrics and narrowed its losses in recent years, the company is yet to achieve profitability. The lukewarm response to the IPO so far may reflect investor caution in the current market environment. As the offering concludes, market observers will be closely watching the final subscription levels and post-listing performance of FirstCry shares.
Get $1000 towards your
first investment
*Terms and conditions apply. See details
While FirstCry's IPO prospects remain uncertain, investors eager to gain exposure to the booming e-commerce and childcare market don't have to wait. At Linqto, we offer members access to interests in pre-IPO private companies, including potential leaders in the e-commerce and childcare sectors. Our platform allows you to diversify your portfolio with lower minimum investments in emerging industry leaders, potentially benefiting from their growth before they go public.
1 - BusinessLine - FirstCry's IPO offers a chance to invest in a leading childcare products platform with strong growth potential.
2 - BusinessLine - FirstCry's parent company, Brainbees Solutions, sets IPO price at ₹440-465/share, with reduced valuation and scaled-down fresh issue.
3 - BusinessLine - FirstCry's parent company, Brainbees Solutions Ltd, IPO closes with lukewarm response, undersubscribed except for employee and retail quotas.
4 - The Times of India - Ola Electric, set for a $6 billion IPO, plans layoffs amid IPO filings by Swiggy and FirstCry.
5 - The Times of India - SoftBank, Bahl, and Bansal, with an indemnity pact, face losses as FirstCry's online sales dominate, impacting revenue negatively.
*These comments should not be interpreted to mean that the company is formally pursuing or foregoing an IPO. The information provided above is based on current online discussions and is not intended as investment advice. Linqto does not endorse or guarantee the accuracy of this information, and we strongly recommend conducting your own research or consulting with a professional advisor before making any investment decisions. Linqto cannot be held liable for any investment outcomes resulting from the use of this information.
