FirstCry listing: Shares debut at 40% premium on NSE at Rs 651 per share

Brainbees Solutions listing: Brainbees Solutions-the parent company of FirstCry started trade on D-Street on a positive note. On the NSE, the stock listed at Rs 651against the IPO price of 465, a premium of 40 per cent. While on the BSE it started trade at Rs 625, a premium of over 34 per cent.

What should investors do after FirstCry's listing surpasses even the optimistic pre-listing expectations

Shivani Nyati, Head of Wealth, Swastika Investmart said, "The IPO was moderately subscribed at 12.22 times, indicating decent investor interest. However, the strong listing performance reflects a renewed confidence in the company's growth prospects, despite the ongoing profitability challenges."

While Firstcry's market leadership and strong brand position are undeniable, investors should remain cautious about the company's path to profitability. The reliance on third-party manufacturers and negative cash flows remain areas of concern that require close monitoring, she added.

IPO details 

The company's issue comprising 90.2 million shares on offer ran between August 6 to August 8 and garnered a decent recent with over 12 times subscription. The overall subscription was led by the qualified institutional buyer (QIB) category that was subscribed 19.3 times.

Zee Business Managing Editor Anil Singhvi expects the baby-to-mother goods e-retailer to list in the range of Rs 540-560 against the IPO issue price of Rs 465 apiece. This is a premium of over 20 per cent from the issue price.

The expert advised a 'subscribe' rating on the company's IPO. Short-term investors are advised to hold the stock keeping a stop loss of Rs 500.

Avendus Capital acted as one of the book-running lead managers for the FirstCry IPO.