FirstCry, India’s leading online retailer for baby and kids’ products, has taken a significant step towards expanding its operations with its upcoming Initial Public Offering (IPO). With a strong market position and high growth potential, FirstCry wants to raise funds to grow its offline and online presence, invest in technology, and enhance its supply chain. But is this IPO a good investment opportunity for you? Read our detailed analysis of the FirstCry IPO to find out. FirstCry IPO – Review Detailed Analysis”
About – FirstCry
FirstCry IPO – Review
FirstCry, founded in November 2010, is headquartered in Pune, India. Its parent company, Brainbees Solutions Ltd., initially started selling products for children from 0-6 years old. Later, they expanded to include products for children up to 12 years old. FirstCry began as an online marketplace, selling products from various brands. Later, they launched their own brand, Babyhug, which has become a significant contributor to their sales. Today, FirstCry sells over 16 lakh products from 7500+ brands, including Babyhug.
What FirstCry do?
FirstCry is India’s online and offline retailer for baby, kids, and mothers products offering a vast range of items for children from birth to 12 years old, as well as products for mothers. Their extensive product portfolio includes clothing and footwear, toys and games, nursery and baby gear, feeding and nursing essentials, bath and baby skin care products, health and wellness products, school supplies, activity kits and maternity wear, nursing wear, and beauty products for mothers.
Initially focusing on 0-6 year olds, they expanded to include products for 6-12 year olds. They now offer products for children up to 12 years old. They have also ventured into international markets, selling products in the UAE and Saudi Arabia.
FirstCry has a strong offline presence, with over 1063 stores across India, and plans to open 350 more stores in the next two years. They have a multi-channel approach, selling products online and offline both. In addition to their presence in India, FirstCry has expanded internationally, entering the UAE market in 2019 and Saudi Arabia in 2022, where they sell products online and have 12 offline stores.
In India, they have a strong logistics network with 80 warehouses and stockists in 47 states, ensuring efficient product distribution. Moreover, in India, 75% of sales come from online channels, while 25% come from offline channels, with sales generated from over 1060 stores operating under the FirstCry and BabyHug brands. Internationally, the company operates online with 100% of sales coming from online channels and has an offline presence with 12 stores. In India, 75% of FirstCry’s Gross Merchandise Value (GMV) comes from online channels, while 25-26% comes from offline channels.
FirstCry operates in a sector that is experiencing rapid growth in India. The sector is largely unorganized, with 84% of the market consisting of local shops and only 16% being organized. Notably, FirstCry has captured the entire 16% of the organized market share. This gives FirstCry a significant presence in the industry. FirstCry’s sales are increasing, and its losses are decreasing. FirstCry has a strong supply chain and maintains a well-balanced online and offline presence.
Strength*
- Growing Revenue: FirstCry’s revenue has grown significantly, with a 10-15% jump in FY24 to Rs 6,481 crore.
- Strong Market Share: FirstCry has a 16-17% market share in the organized child care product market.
- Diversified portfolio : FirstCry offers a wide range of products from over 7,500 brands, including their personal brand Babyhug, for children from 0-12 years old and mothers. They plan to allocate a small portion of the IPO funds for future.
- Multi-Channel Retailer: FirstCry has a strong online presence and over 1,063 stores across India, covering 28 states and 5 union territories.
- International Expansion: FirstCry has expanded internationally to the UAE and Saudi Arabia, with products sold online and in 12 offline stores across both countries.
- Strong Supply Chain: FirstCry has 80 warehouses and 47 stockists in India.
Weakness*
- High Portion of Offer for Sale: A significant portion of the IPO fund (2,527.73 Cr) will go to existing investors, rather than funding company growth.
- No Plan for Debt Repayment: FirstCry has not outlined a plan to repay its debts, which have increased to Rs 462 crore.
- No Current Profit: FirstCry is not making a profit. If we look at the company’s financial performance over the past three years, from 2022 to 2024, we can see a concerning trend. The losses have been getting bigger each year: ₹79 crore in 2022, ₹486 crore in 2023, and now ₹321.5 crore in 2024, which is slightly decreased from 2023. This is still a big problem for the company
- High Valuation: FirstCry valuation is high at Rs 24,000 crore.
FirstCry IPO Details
FirstCry IPO Details :
The Initial Public Offering (IPO) of FirstCry is opening on August 6, 2024, and will close on August 8, 2024. The price band for the IPO is set at ₹440-₹465 per share, with a valuation of ₹24,000 crore. The total IPO size is ₹4,193.73 crore, with a fresh issue of ₹1,666.00 crore for company growth and an offer for sale of ₹2,527.73 crore allowing existing investors to exit.
The funds raised from the IPO will be utilized to expand FirstCry’s operations, including opening over 350 new offline stores in next 2 years, growing its offline presence, and expanding its 82 warehouses. Additionally, the company plans to strengthen its operations in the Middle East, including Saudi Arabia, invest in technology, enhance sales and operations, and use funds for general corporate purposes. Some funds will also be reserved for potential acquisitions. The minimum application lot size for the IPO is 32 shares.
| IPO Date | August 6, 2024 to August 8, 2024 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price band | ₹440 to ₹465 per share |
| Lot Size | 32 Shares |
| Total issue size | 90,187,690 shares (aggregating up to ₹4,193.73 Cr) |
| Fresh issue | 35,827,957 shares (aggregating up to ₹1,666.00 Cr) |
| Offer for sale | 54,359,733 shares of ₹2 (aggregating up to ₹1 (2,527.73 Cr) |
| Employee Discount | ₹44 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 483,349,470 |
| Share holding post issue | 519,177,427 |
FirstCry IPO Reservation
| Investor Category | Shares Offered | Maximum Allottees |
| Anchor Investor Shares Offered | 40,555,428 (44.96%) | NA |
| QIB Shares Offered | 27,036,953 (29.98%) | NA |
| NII (HNI) Shares Offered | 13,518,476 (14.99%) | |
| bNII > ₹10L | 9,012,318 (9.99%) | 20,116 |
| sNII < ₹10L | 4,506,158 (5.00%) | 10,058 |
| Retail Shares Offered | 9,012,317 (9.99%) | 281,634 |
| Employee Shares Offered | 71,258 (0.08%) | NA |
| Total Shares Offered | 90,194,432 (100%) |
FirstCry IPO Anchor investors Details
FirstCry IPO’s anchor investors invested ₹1,885.83 crores on August 5, 2024, for a total of 40,555,428 shares. These investors are subject to a lock-in period, which restricts them from selling their shares for a certain time. Specifically, 50% of the shares are locked in until September 8, 2024, 30 days from the investment date, while the remaining shares are locked in until November 7, 2024, 90 days from the investment date. This lock-in period helps maintain stability in the stock price after the IPO. Check full Anchor investors list – click here
| Bid Date | August 5, 2024 |
| Shares offered | 40,555,428 |
| Anchor Portion Size (In Cr.) | 1,885.83 |
| Anchor lock-in period end date for 50% shares (30 Days) | September 8, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | November 7, 2024 |
FirstCry IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 32 | ₹14,880 |
| Retail (Max) | 13 | 416 | ₹193,440 |
| S-HNI (Min) | 14 | 448 | ₹208,320 |
| S-HNI (Max) | 67 | 2,144 | ₹996,960 |
| B-HNI (Min) | 68 | 2,176 | ₹1,011,840 |
FirstCry IPO Timeline
| IPO Open Date | August 6, 2024, Tuesday |
| IPO Close Date | August 8, 2024, Thursday |
| Basis of Allotment | August 9, 2024, Friday |
| initiation of refunds | August 12, 2024, Monday |
| Credit of Shares to Demat | August 12, 2024, Monday |
| Listing Date | August 13, 2024, Tuesday |
| Cut-off time for UPI mandate Confirmation | 5:00 PM on August 8, 2024, Thursday |
FirstCry Financials
FirstCry’s financial performance has shown significant growth over the years. In 2022, the company reported a revenue of ₹2516 crore, which increased to ₹5731 crore in 2023 and further to ₹6575 crore in 2024. However, the company has also incurred losses, with ₹79 crore in 2022, ₹486 crore in 2023, and ₹321.5 crore in 2024, which is a slight decrease from the previous year. The company’s assets have grown from ₹6197 crore in 2022 to ₹7119 crore in 2023 and ₹7510 crore in 2024.
A slight decline has been seen in the company’s net worth from 2022 to 2024. The net worth of the company decreased from ₹3527 crore in 2022, ₹3456 crore in 2023, and ₹3183 crore in 2024. Additionally, the company’s loan burden has been increasing steadily, with loans rising from ₹90 crore in 2022 to ₹176 crore in 2023 and further to ₹462 crore in 2024, indicating that the company’s debt is increasing as it grows.
| Particulars | Financial year ended March 31, 2024 | Financial year ended March 31, 2023 | Financial year ended March 31, 2022 |
| Revenue | 6,575.08 | 5,731.28 | 2,516.92 |
| Profit/Loss for the period or year | -321.51 | -486.06 | -78.69 |
| Net worth | 3,170.74 | 3,456.26 | 3,527.94 |
| Assets | 7,510.38 | 7,119.83 | 6,197.16 |
| Total Borrowing | 462.72 | 176.47 | 90.16 |
| Reserves and Surplus | 3,081.74 | 3,367.21 | 3,439.17 |
| Diluted earnings per share (in ₹) | (5.03) | (9.97) | (1.74) |
| NAV per equity share (in ₹) | 71.93 | 78.10 | 85.12 |
FirstCry KPI (Key Performance indicators)
| KPI | Values |
| RoNW | -8.65% |
| P/BV | 6.49 |
| Pre IPO | Post IPO | |
| EPS (₹) | -6.65 | -6.19 |
| P/E (x) | -69.91 | -75.09 |
FirstCry IPO Subscription Status (Bidding Details)
| Category | Subscription (times) | Shares offered | Shares bid for |
| QIB | 0.00 | 2,70,36,953 | 448 |
| NII | 0.04 | 1,35,18,476 | 5,54,848 |
| bNII (bids above ₹10L) | 0.03 | 90,12,318 | 2,55,840 |
| sNII (bids below ₹10L) | 0.07 | 45,06,158 | 2,99,008 |
| Retail | 0.33 | 90,12,317 | 29,96,032 |
| Employee | 1.39 | 71,258 | 98,848 |
| Total | 0.07 | 4,96,39,004 | 36,50,176 |
Total Application – 73,454
FirstCry IPO Day-wise Grey Market Premium (GMP)
The Grey Market Premium (GMP) for FirstCry’s IPO has been fluctuating over the past week. On August 6, 2024, the GMP was ₹44, down from ₹45 on August 5, 2024, and ₹85 on August 4, 2024. The estimated listing price has also decreased from ₹550 on August 4, 2024, to ₹509 on August 6, 2024, representing a 9.46% drop. The GMP has been trending downward, with a high of ₹104 on August 2, 2024, and a low of ₹44 on August 6, 2024. The IPO price remains at ₹465.00, with the last update on August 6, 2024, at 12:57.
| GMP Date | IPO Price | GMP | Sub2 Sauda rate | Estimated Listing Price | Last Updated |
| 13-08-2024 (Listing) | 465.00 | ₹87 | 2100/29400 | ₹552 (18.71%) | 13 August, 2024 |
| 12-08-2024 | 465.00 | ₹87 | 2100/29400 | ₹552 (18.71%) | 12 August, 2024 |
| 11-08-2024 | 465.00 | ₹75 | 1800/25200 | ₹540 (16.13%) | 11 August, 2024 |
| 10-08-2024 | 465.00 | ₹73 | 1800/25200 | ₹538 (15.7%) | 10 August, 2024 |
| 09-08-2024 (Allotment) | 465.00 | ₹65 | 1600/22400 | ₹530 (13.98%) | 9 August, 2024 |
| 08-08-2024 (Close) | 465.00 | ₹20 | 500/7000 | ₹485 (4.3%) | 8 August, 2024 19:38 |
| 07-08-2024 | 465.00 | ₹28 | 700/9800 | ₹493 (6.02%) | 7 August, 2024 12:57 |
| 06-08-2024 (Open) | 465.00 | ₹32 | 800/11200 | ₹497 (6.88%) | 6 August, 2024 12:57 |
| 05-08-2024 | 465.00 | ₹45 | 1100/15400 | ₹510 (9.68%) | 5 August, 2024 |
| 04-08-2024 | 465.00 | ₹85 | 2100/29400 | ₹550 (18.28%) | 4 August, 2024 |
| 03-08-2024 | 465.00 | ₹85 | 2100/29400 | ₹550 (18.28%) | 3 August, 2024 |
| 02-08-2024 | 465.00 | ₹104 | 2500/35000 | ₹569 (22.37%) | 2 August, 2024 |
| 01-08-2024 | 465.00 | ₹97 | 2400/33600 | ₹562 (20.86%) | 1 August, 2024 |
| 31-07-2024 | NA | ₹80 | — | ₹80 (%) | 31 July, 2024 |
| 30-07-2024 | ₹0 | — | ₹ (0%) | 30 July, 2024 |
FirstCry Stocks Buy or Not?
The answer depends on your investment goals and risk tolerance. While FirstCry has shown significant growth potential and has a strong presence in the organized baby and kids’ products sector, its increasing losses, high valuation, and high portion of offer for sale may be concerns for some investors. However, with a long-term perspective, FirstCry’s high growth potential and expanding market share in a growing industry could lead to substantial returns.
Conclusion
In conclusion, the FirstCry IPO is an exciting opportunity for investors to be a part of India’s leading retailer for baby and kids’ products, with a strong presence both online and offline. The company has a strong market position , high growth potential and plans for expansion. However, it’s essential to consider the risks and challenges before investing. Do your research and consult with experts to make an informed decision.
Also Read
FAQ?
Q: What is the IPO date for FirstCry?
Ans. The IPO for FirstCry opens on August 6, 2024, and closes on August 8, 2024.
Q: What is the price band for the FirstCry IPO?
Ans. The price band for the FirstCry IPO is set at ₹440-₹465 per share.
Q: How much money will FirstCry raise through this IPO?
Ans. FirstCry will raise ₹4,193.73 crore through this IPO.
Q: What is the minimum application lot size for the FirstCry IPO?
Ans. The minimum application lot size for the FirstCry IPO is 32 shares.
Q: Can I apply for the FirstCry IPO online?
Ans. Yes, you can apply for the FirstCry IPO online through various online platforms and brokerages.
Q: What are the risks associated with investing in the FirstCry IPO?
Ans. As with any investment, there are risks associated with investing in the FirstCry IPO, including market risks, company-specific risks. regulatory risks, Please consult with a financial advisor before making any investment decisions.
Q: What is the valuation of FirstCry through this IPO?
Ans. FirstCry has a valuation of ₹24,000 crore and is raising ₹4,193.73 crore through this IPO.
⚡ Disclaimer: This article is not written by a financial advisor, and it should not be considered as personalized financial advice. It is essential to consult a financial expert before making any investment decisions or Do your own research before investing.
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