FirstCry Parent Company Brainbees Solutions’ Stellar IPO Debut Yields Big Gains for Celebrity Investors Sachin Tendulkar and Ratan Tata
News Mania Desk/Agnibeena Ghosh/13th August 2024
Brainbees Solutions, the parent company of the popular e-commerce platform FirstCry, surprised investors with a remarkable debut on Dalal Street, leading to substantial profits for its pre-IPO investors, including notable figures Sachin Tendulkar and Ratan Tata. On Tuesday, the company’s shares were listed at ₹651 on the National Stock Exchange (NSE), representing a striking 40% premium over the issue price of ₹465 per share. This impressive debut far exceeded the grey market premium (GMP) predictions, which had anticipated a listing gain of up to 20%.
Sachin Tendulkar, the legendary cricketer, and his wife, Anjali Sachin Tendulkar, had invested ₹10 crore in Brainbees Solutions in October 2023, purchasing over 2.05 lakh equity shares at ₹487.44 each—above the IPO price. The strong listing price of ₹651 per share significantly increased the value of their investment to approximately ₹13.35 crore. At the peak of ₹707.05 during the trading session, their stake swelled to ₹14.5 crore. Despite these gains, Tendulkar’s investment remains unrealizable for now, as pre-IPO investors are barred from exiting their positions until the lock-in period mandated by SEBI regulations expires.
Similarly, industrialist Ratan Tata saw a significant return on his investment. Tata had invested ₹66 lakh in 2016 to acquire 77,900 equity shares at ₹84.72 per share. With the shares listed at ₹651 each, Tata’s investment value surged to ₹5.07 crore, marking a remarkable return of 670%. At the highest point of the trading day, his stake was valued at ₹5.50 crore. Although Tata’s returns are substantial, like Tendulkar, he is also constrained by the pre-IPO lock-in rules.
Brainbees Solutions’ IPO, which ran from August 6 to August 8, was offered within a price band of ₹440-465 per share and had a lot size of 32 shares. The IPO was met with significant enthusiasm, resulting in an oversubscription of approximately 12.22 times and raising ₹4,193.73 crore.
Founded in 2010, Brainbees Solutions operates the FirstCry platform, which serves as a comprehensive online retail store catering to the needs of mothers, babies, and children. The platform features products from both Indian and global brands, along with its own branded offerings, creating a one-stop solution for parenting needs, including retail, content, community engagement, and education.
The exceptional performance of Brainbees Solutions on its market debut highlights the growing investor confidence in the company and its flagship platform, FirstCry. The substantial gains for Tendulkar and Tata underscore the strong market reception and the company’s potential for future growth. As the lock-in period for pre-IPO investors concludes, further developments in Brainbees Solutions’ stock performance will be closely watched by both retail and institutional investors.
