- By Aditya Pratap Singh
- Wed, 07 Aug 2024 07:16 PM (IST)
- Source:JND
The initial public offering of Brainbees Solutions, the parent company of e-commerce platform FirstCry, received subscriptions for 30% of the shares on offer on the second day of bidding on Wednesday. According to NSE data, bids were received for 1,47,37,568 shares against 4,96,39,004 shares on offer in the Rs 4,194 crore initial share sale.
Retail individual investors subscribed to 1.06 times their portion while non-institutional investors subscribed to 30% of their portion. The Qualified Institutional Buyer (QIB) segment received 3% of the subscriptions.
The initial public offering (IPO), which has a price band of Rs 440-465 per share, will close for public subscription on August 8. Pune-based Brainbiz Solutions has a fresh issue of Rs 1,666 crore of equity shares in its public issue and existing shareholders Rs 2,528 crore OFS (offer for sale) component of up to 5.44 crore shares.
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This brings the total issue size to Rs 4,194 crore. Under the OFS, SoftBank's Cayman Islands-registered entity, SVF Frog, will sell 20.3 million equity shares in BrainBiz Solutions and automaker Mahindra & Mahindra (M&M) will offload 2.806 million shares in the company.
SoftBank currently holds a 25.55% stake in Brainbees Solutions, and M&M holds a 10.98% stake. In addition to SoftBank and M&M, other companies selling OFS shares include PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, and Schroders Capital. Veteran industrialist Ratan Tata is also among those selling shareholders.
The company will use the net proceeds from the fresh issue to set up stores under the 'Babyhug' brand, invest in subsidiaries, expand overseas, and for sales and marketing initiatives. In addition, a portion will be used for corporate general purposes.
Launched in 2010, Firstcry is India's largest multi-channel, multi-brand retail platform for mother, baby, and children's products. It was established to create a one-stop destination for parenting needs across commerce, content, community engagement, and education, based on brand affinity, loyalty, and consumer trust. FirstCry also established itself in the UAE and Saudi Arabia in 2019 and 2022, respectively.