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FirstCry, a leading Indian e-commerce platform for children's products, is set to launch its IPO from August 6 to August 8, 2024, aiming to raise ₹4,193.73 crore. Founded in 2010, FirstCry plans to use the funds for expanding stores, establishing a warehouse, and international growth. With impressive sales growth but some operational and financial challenges, investors should conduct a detailed SWOT analysis before participating in the IPO.
Most investors keep a watchful eye on the upcoming IPOs. Seen as a sure-shot way to earn good returns, IPOs by big brands are often over-subscribed. FirstCry IPO is one of the most anticipated IPOs of 2024. Recently, when the company announced its entry into the IPO market, the market showed a high morale for the same.
Brainbees Solutions, FirstCry’s parent company, is set to launch its public subscription on Tuesday, August 6, 2024. Read on as we dig into all the details of the FirstCry IPO that you need to know when you plan to invest in the company.
Established in 2010, Brainbees Solutions Limited, through its online retail space, FirstCry has become one of India’s most well-known online retail stores, As one of the most trusted children’s brands, FirstCry is indeed the first choice for expecting mums as well as new parents. From apparel to footwear, from toys to baby care items, FirstCry offers an expansive range of products.
The initial public offering (IPO) of Brainbees Solutions, the parent company of FirstCry, will open for public subscription from Tuesday, 6th August 2024, to Thursday, 8th August 2024. FirstCry is a leading e-commerce platform for children's products in India founded by Supam Maheshwari and Amitava Saha. The company is headquartered in Pune.
The company has announced this IPO and aims to raise a capital of ₹4,193.73 crore. The funds from the upcoming FirstCry IPO will be used to cover several key areas including:
Setting up new modern stores under the BabyHug brand
Pay the lease payments on existing modern stores in India
Investments in its subsidiary Digital Age to open new FirstCry stores
Establishing a warehouse in India
New stores and warehouses in KSA.
As investors prepare for the subscription period, here are some key details to consider before participating.
Ola Electric IPO | Details |
IPO Open Date | 6th August, 2024 |
IPO Close Date | 8th August, 2024 |
Face value | ₹2 a piece |
Issue Type | Book Built Issue IPO |
Price band | ₹440 to ₹465 per share |
Fresh Issue | 35,827,957 shares |
Offer for Sale | 54,359,733 shares of ₹2 a piece |
Allotment date | 8th August 2024 |
Credit in demat accounts | 8th August 2024 |
Initiation of Refunds | 12th August 2024 |
Listing date | 13th August 2024 |
Listing platforms | Both
|
FirstCry is India’s biggest online and offline store for products for mothers, babies, and kids. A clear analysis of the company can be very helpful in making the right decision about your investments. Listed below are some of the strengths and weaknesses of the company.
Strengths
In the financial year 2023, FirstCry made ₹72,576.34 million in sales, which is a big jump from ₹57,994.63 million in FY 2022 and ₹39,858.44 million in FY 2021. The platform’s wide reach and strong community of parents help drive its success.
The company’s content-focused approach attracts parents from the very beginning. The robust platform offers practical help to parents in the form of content and data from parents, gynaecologists, doctors, and nutritionists.
The high brand loyalty enjoyed by the company encourages traffic to the platform. Capitalizing on its brand strength, FirstCry is also extending into international markets and new areas, which further enhances its visibility and grows its customer base.
FirstCry offers a long list of 7,580 global and domestic brands such as Mee-Mee, Chicco, Medela and Funskool. This variety of options variety attracts a diverse customer base not just in India, but also in the UAE, and the KSA.
Weaknesses
When it comes to operations, the company’s performance in the past might not guarantee future growth or financial results. The uncertainties noticed by the auditors could limit the company’s business flexibility.
Several FirstCry subsidiaries have unsecured loans that can be recalled at any time, potentially leading to liquidity problems.
The company has experienced negative net cash flows in the past, and future negative cash flows could harm its financial condition.
Though the Regulatory and Compliance with Companies Act 2013, has been resolved, there is no assurance that future non-compliance won't occur.
A lack of exclusive agreements with third-party brands can be a potential risk if these brands decide to end their relationship with the company.
FirstCry is a one-stop shop for most new parents. It is a big brand popular across the country. Despite notable asset growth indicating potential expansion and capacity, recent revenue declines and a shift from profitability to significant losses reveal underlying challenges and market pressures.
The small drop in net worth and reserves suggests lower equity and retained earnings, which could affect financial stability. Also, the big increase in borrowing means higher debt, which might impact financial stability and lead to more interest payments. Fixing these problems will be important for keeping the company stable and supporting future growth.
So, if you are planning to apply for the FirstCry IPO, make sure you are well aware of the company's strengths and weaknesses. Make a well-informed decision after a careful and detailed SWOT analysis.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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