Brainbees Solutions Limited (FirstCry) IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

By Elite Wealth
/ May 7, 2024
/ IPO-Recommendation, Uncategorized, whatsnew

Brainbees Solutions Limited (FirstCry) IPO Company Profile:

Brainbees Solutions Limited, known primarily for its brand FirstCry, is a prominent player in the retail sector for maternity, baby, and kids’ products. Established in 2010, the company has grown to become the largest multi-channel, multi-brand retail platform in India catering to parents and their children.

Brainbees Solutions Limited (FirstCry) IPO Business Model :

FirstCry operates as a comprehensive multi-channel retail platform, primarily focusing on products for mothers, babies, and kids. Here’s a detailed look at their business operations:

Brainbees Solutions Limited (FirstCry) IPO Retail Channels :

Online Platform: FirstCry’s primary sales channel, offering a vast range of products, including third-party Indian brands, global brands, and their own home brands.

Physical Stores: Includes both company-owned and franchise-owned stores across various locations in India. These stores provide a physical touchpoint for customers, enhancing brand presence and accessibility.

General Trade Retail Distribution: Involves distribution through general trade channels, leveraging a vast network of distributors and retailers in India.

International Presence: FirstCry has expanded its operations to the UAE since 2019 and the Kingdom of Saudi Arabia since 2022, aiming to replicate its successful Indian model in these markets.

Brainbees Solutions Limited (FirstCry) IPO Product Offerings :

FirstCry’s product range includes categories such as:

Apparel
Toys
Baby gear
Nursery furniture
Diapers
Feeding and nursing products
Bath and skincare products
Books and CDs

These products are sourced from a mix of Indian and international brands, as well as FirstCry’s proprietary brands like BabyHug and CuteWalk.

Brainbees Solutions Limited (FirstCry) IPO Intellectual Property :

The Company has registered several trademarks in India and internationally, including key brands such as FirstCry, BabyHug, and Intellitots. These trademarks are crucial for maintaining brand identity and market position.

Brainbees Solutions Limited (FirstCry) IPO Market Position :

FirstCry is a dominant player in the Indian market, with significant growth and a large customer base. According to the RedSeer Report, it holds the largest market share in terms of Gross Merchandise Value (GMV) for the year ending December 2023. The platform addresses essential parenting needs, creating a long-term, emotional connection with its customers, particularly mothers. This relationship begins from the baby’s conception and can last until the child is about 12 years old.

Brainbees Solutions Limited (FirstCry) IPO Industry Context :

The childcare product market in India is in its nascent stages but is rapidly growing. The market features both vertical players (focused on single childcare product categories) and horizontal players (operating across various product categories). The demand for childcare products is non-discretionary and essential, with high purchase frequency due to the nature of children’s needs, such as quickly outgrowing clothes and the continual requirement for consumables like diapers.

Brainbees Solutions Limited (FirstCry) IPO Strategic Acquisitions :

The acquisition of Digital Age on May 2, 2022, played a crucial role in the company’s financial performance for FY 2023. This acquisition has been integrated into the financial statements from the date of acquisition, contributing to the overall revenue and operational expenses

Brainbees Solutions Limited (FirstCry) IPO Future Prospects :

Brainbees Solutions Limited aims to continue expanding its retail footprint and enhancing its product offerings while leveraging technology to improve customer experiences. The company’s strategic focus includes further international expansion and strengthening its position in existing markets.

Brainbees Solutions Limited (FirstCry) IPO Future Prospects Strengths and Weaknesses of the Company:

Strengths:

Largest Multi-Channel Retailing Platform: The company is India’s largest multi-channel, multi-brand retailing platform for mothers, babies, and kids’ products. This extensive platform includes both online and physical stores, allowing for a comprehensive shopping experience that caters to various customer preferences. The platform’s GMV has seen significant growth over the years, demonstrating its strong market presence and scalability.
Powerful Network Effects: The Company’s content-led strategy has created a robust ecosystem where parents engage early in their parenting lifecycle. This strategy not only attracts new customers but also generates valuable content, which enhances customer loyalty and organic growth. The combination of user-generated content and expert contributions creates a rich and engaging platform that drives customer acquisition and retention.
Extensive Store Network: With over 1,018 modern stores across India and a presence in international markets like UAE and KSA, the company has a widespread physical footprint. This extensive network provides a “touch and feel” shopping experience, complementing its online platform and catering to a wide customer base.
Strong Brand Affinity and Economies of Scale: The Company’s scale allows it to benefit from economies of scale, enhancing its ability to launch additional home brands and improve margins. The large volume of organically generated content and brand affinity further strengthens its market position.
Innovative Customer Engagement: The Company invests significantly in technology and data analytics to drive operational efficiency and improve customer experiences. It employs predictive analytics to maintain adequate inventory levels and enhance its recommendation systems, ensuring fast and efficient service.

Brainbees Solutions Limited (FirstCry) IPO Risk Factors for the Company :

The company is exposed to several risk factors that could significantly impact its business operations, financial condition, and overall performance. These risk factors are categorized into operational, financial, regulatory, legal and business risk. Here is a summary based on the provided document:

Operational and Financial Risks

Historical Performance: The Company’s past performance is not necessarily indicative of future growth. There is uncertainty about sustaining historical growth rates and effectively executing strategies.
Subsidiary Concerns: The auditors of FirstCry Retail DWC LLC, a subsidiary, have noted material uncertainty about its ability to continue as a going concern.
Lender Restrictions: Financing arrangements with lenders include restrictive conditions that may limit business flexibility and planning.
Negative Cash Flows: The Company has experienced negative net cash flows previously, which could affect future operations and financial stability.
Dependency on Personnel: The Company relies heavily on the performance of its management and skilled personnel. Failure to attract and retain key staff could harm operations and financial health.

Regulatory and Compliance Risks

Non-Compliance with Companies Act: There have been instances of non-compliance with the Companies Act 2013, which had to be compounded. Future non-compliances could occur.
Legal Proceedings: There are ongoing litigations against the company, its subsidiaries, and directors. Adverse outcomes could negatively impact reputation and financial conditions.

Business Risks

Third-Party Brand Relations: The Company does not have exclusive arrangements with third-party brands. Termination of these relationships could lead to reduced customer purchases.
Offer Proceeds Risks: Various interrelated risks are associated with the usage, receipt, and deployment of offer proceeds.

Brainbees Solutions Limited (FirstCry) IPO Financial Performance of the Company :

Brainbees has demonstrated significant growth, with increasing revenues driven by both online and offline sales channels. The company has invested in technology and infrastructure to support its expansive operations.

Brainbees Solutions Limited (FirstCry) IPO Profit & Loss Analysis :

Particulars (₹ in million)	For the period ended December 31, 2023	For the year ended March 31, 2023	For the year ended March 31, 2022	For the year ended March 31, 2021	CAGR %
Revenue from operations	48,140.03	56,325.39	24,012.88	16,028.54	52.03%
Other Income	760.17	987.37	1,156.28	1,372.05
Total Income	48,900.20	57312.76	25,169.16	17400.59	48.78%
Direct Expenses	36124.09	47051.48	19109.87	12599.22
Other expenses	11,642.21	12,446.63	5,085.02	3,010.65
EBITDA	1,133.90	(2,185.35)	974.27	1,790.72	-283.38%
EBITDA margin%	2.32%	-3.81%	3.87%	10.30%
Depreciation	2,682.15	2,942.83	1,108.02	702.37
Interest	1148.84	715.73	376.83	140.76
Share of profit of an associate	–	–	–	35.62
Exceptional Item	–	543.68	–	–
PBT	(2,697.09)	(5,300.23)	(511.44)	983.21	-275.34%
Total tax	(85.36)	439.67	(275.41)	1,176.23
PAT	(2,782.45)	(4,860.56)	(786.85)	2,159.44	-231.05%
PAT margin%	-5.77%	-8.62%	-3.27%	12.41%

Brainbees Solutions Limited (FirstCry) IPO Details:

IPO Open Date	[.]
IPO Close Date	[.]
Listing Date	[.]
Face Value	₹2 per share
Price	[.] to [.] per share
Lot Size	[.]
Issue Size	[.] Shares aggregating up to [.] million
Fresh Issue	[.] Equity Shares aggregating up to ₹18,160.00 million
Offer for Sale	Up to 54,391,592 Equity Shares aggregating to ₹ [.] million
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
QIB Shares Offered	Not more than 75% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer
Retail Shares Offered	Not less than 10% of the Offer

Brainbees Solutions Limited (FirstCry) IPO Pre-Offer shareholding of the Selling Shareholders:

Pre-offer
S.No	Name of the Shareholder	Number of Equity Shares	Percentage of equity share capital on a fully diluted basis (%)
Corporate Selling shareholders
1	Anchor Partners	6,28,943	0.13
2	Apricot	1,68,21,867	3.46
3	Castle Investment and Industries Private Limited	1,37,975	0.06
4	IDGVI III	14,32,143	0.29
5	M&M	4,11,16,885	10.97
6	NewQuest Asia Investments III Limited	1,85,76,620	3.82
7	Pandara	4,99,700	0.1
8	PI Opportunities I	2,13,49,265	4.9
9	Pratithi Investment Trust	15,69,015	0.39
10	Sage	3,50,108	0.07
11	Satyadharma Investments and Trading Company Private Limited	2,26,455	0.08
12	Schroders Capital	38,02,210	0.78
13	SVF Frog (Cayman) Ltd	12,40,92,296	25.53
14	Think India	51,62,567	1.06
15	TIMF	51,62,568	1.06
16	TPG	1,97,52,718	4.94
17	Valiant	2,31,800	3.05
18	Chiratae Trust	10,00,350	0.21

Brainbees Solutions Limited (FirstCry) IPO Objects of the Offer :

The primary objectives of the offer are:

Establishment of New Stores and Warehouse:
Setting up new modern stores under the “BabyHug” brand.
Establishing a new warehouse in India.
Lease Payments:
Funding lease payments for existing identified modern stores operated by the company in India.
Investment in Subsidiary:
Investing in the subsidiary, Digital Age, for setting up new modern stores under the “FirstCry” brand and other home brands.
Covering lease payments for existing identified modern stores of the subs