Brainbee Solutions IPO Surges With 40% Listing Premium In Strong Market Debut
During its subscription phase, the IPO received a total subscription of more than twelve times
The initial public offering (IPO) of Brainbee Solutions which attempted to raise over Rs 4,000 crore made a bumper debut on the streets. The IPO listed with 40 per cent premium at Rs 651 on the National Stock Exchange (NSE) against its issue price of Rs 465.
During its subscription phase, the IPO received a total subscription of more than twelve times. The retail category was subscribed 2.3 times, whereas the qualified institutional buyers (QIB) baked the issue with nearly 20 times subscription.
The Rs 4,193.73 crore IPO consisted of fresh issues of up to Rs 1,666 crore and an offer-for-sale (OFS) worth Rs 2,527.73 crore by promoter and investor selling shareholders.
The price band of the offer was fixed at Rs 440 per equity share to Rs 465 per equity share.
Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, JM Financial and Avendus Capital were the book running lead managers to the Offer.
IPO Objectives
The firm intends to use the net proceeds of Rs 1,666 crore for the establishment of new modern stores under the BabyHug brand and establishment of a warehouse in India.
The net proceeds will also be used towards the expenditure on lease payments for existing identified modern stores owned and operated by the company in India.
Additionally the firm will also invest in its subsidiaries Digital Age, Firstcry and Globalbees Brands.
Further the proceeds will finance the inorganic growth through acquisitions and other strategic initiatives and general corporate purposes. The firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
The firm registered revenue of Rs 6,575 crore in FY24, compared to Rs 5,731 crore in FY23.
Additionally, the firm’s loss also reduced to Rs 321 crore in FY24 compared to Rs 486 crore in FY23.
Overall, revenue increased by 14.72 per cent, whereas profit after tax (PAT) rose 33.85 per cent.
