FirstCry shares jump over 13% post listing
Brainbees Solutions, which operates and owns FirstCry, jumped over 13% to Rs 707 following their strong debut on the exchanges on Tuesday. The stock debuted at Rs 625 on the BSE, reflecting a premium of Rs 160 or 34% over the IPO price of Rs 465. On the NSE, it is listed at Rs 651, reflecting a 40% premium.
The listing was above expectations, with shares previously trading at a grey market premium (GMP) of 18% to the issue price.
«The IPO was moderately subscribed at 12.22 times, indicating decent investor interest. However, the strong listing performance reflects a renewed confidence in the company's growth prospects, despite the ongoing profitability challenges,» said Shivani Nyati, Head of Wealth, Swastika Investmart.
«While Firstcry's market leadership and strong brand position are undeniable, investors should remain cautious about the company's path to profitability. The reliance on third-party manufacturers and negative cash flows remain areas of concern that require close monitoring,» Nyati added.
The IPO of FirstCry sailed through on the last day of the bidding process with a subscription of over 12 times at close.
Ahead of the issue opening, the company raised Rs 1,886 crore from 71 anchor investors ahead of the issue opening. Marquee investors who participated in the anchor round include SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, Government of Singapore, ADIA, and Goldman Sachs among others.
The SoftBank and Premji Invest-backed firm said it will
