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The majority of investors closely monitor the impending IPOs. Big brand IPOs are frequently oversubscribed because they are perceived as a surefire way to generate high returns. One of the most eagerly awaited IPOs of 2024 is FirstCry. The market responded well to the company’s recent announcement of its entry into the initial public offering (IPO) space.

The parent business of FirstCry, Brainbees Solutions, plans to open up public subscriptions on Tuesday, August 6, 2024. Continue reading to learn everything you need to know about the FirstCry IPO in case you decide to invest in the business.

About FirstCry ipo

Founded in 2010, Brainbees Solutions Limited has grown into one of India’s leading online retailers with FirstCry.

As one of the most reputable children’s brands, FirstCry is the top choice for both new and expectant mothers. FirstCry provides a wide variety of things, ranging from toys to infant care items, from clothing to shoes.

FirstCry IPOs

Brainbees Solutions, the parent company of FirstCry, will hold its initial public offering (IPO) on Tuesday, August 6, 2024, and will accept subscriptions from the general public starting Thursday, August 8, 2024. FirstCry is a prominent online marketplace for kids’ goods in India, established by Supam Maheshwari and Amitava Saha. Pune serves as the company’s headquarters.

With the announcement of this IPO, the company hopes to raise ₹4,193.73 crore in capital. The money raised from the impending FirstCry IPO will be utilized for a number of important purposes, such as:

• 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. 

Details FirstCry IPO’s

As investors prepare for the subscription period, here are some key details to consider before participating.

Investing in FirstCry IPO

The largest online and physical retailer of goods for moms, infants, and children in India is called FirstCry. Making the best investment decisions can be greatly aided by a thorough examination of the firm. Here are a few of the company’s advantages and disadvantages.

• 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 creditors can recall 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.
  • Even if we resolve the regulatory and compliance issues of the 2013 Companies Act, we cannot guarantee that future non-compliance will not 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. 

Over To You

For most new parents, FirstCry serves as a one-stop store. It’s a well-known brand all around the nation. Even if the company’s assets have grown significantly, suggesting room for development and expansion, recent drops in sales and a change from profitability to considerable losses point to underlying issues and pressures from the market.

Reduced equity and retained earnings are suggested by the little decline in net worth and reserves. which may have an impact on financial stability. Furthermore, a large rise in borrowing translates into higher debt, which could have an effect on financial stability and result in higher interest rates. Resolving these issues will be critical to maintaining the company’s stability and fostering its future expansion.

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.

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.