Brainbees Solutions Limited

About Brainbees Solutions Limited  Incorporated in 2010, Brainbees Solutions Limited is India’s largest multi-channel retailing platform for Mothers’, Babies’, and Kids’ products in terms of GMV as of FY24. It offers products from third-party Indian brands, global brands, and home brands under its brand name “FirstCry.” It also has other brands, namely, Baby Hug, Pine Kids, catwalk, and babyoye.  It expanded its presence in the UAE and KSA in 2019 and 2022, respectively. As of FY24, it is the largest specialist online retail platform for Mothers', Babies', and Kids' Products there.  Its integrated platform fulfils three parenting needs: shopping, parenting community, and education. It does so through its online platform, modern stores, and general trade retail distribution channels in India, as well as online platforms in UAE and KSA. It manufactures its products through contractors as per its design requirements, specifications, and quality standards.  As of 31 March 2024, it is present across 1,164 cities with a retail distribution network of 567 distributors, 1,312+ sub-distributors, and more than 1,60,842 third-party stores.  It also offers a parenting community and content through its YouTube channel, interactive Q&A platform and content on its site. Additionally, it operates several pre-schools in India through the Edubees Educational Trust and its franchisees. As of 31 March 2024, it runs 208 Intellitots preschool centers located in 107 cities across India.  In 2021, the company established Globalbees Brands Private Limited, a digital-first platform for helping D2C Indian and global brands grow their business in India across online platforms and modern stores. Through this, it makes strategic investments in D2C brands.  Globalbees house of brands covers four key categories: home utilities, lifestyle, appliances, beauty and personal care. As of 31 March 2024, it offers over 2,18,000 SKUs across 74 brands, while this segment contributes 18.66% to overall revenue. Brainbees Solutions holds a 50.23% stake on a fully diluted basis in Globalbees Brands.  Between FY22 and FY24, its revenue from operations rose at a CAGR of 39%. Moreover, India has the largest child population globally, with approximately 306 million children under 12 years of age as of July 1, 2023. Per capita spending on childcare products in India is projected to grow faster than in mature markets, at a CAGR of 13% to 15% between 2023 and 2028, which could benefit the company.  And now, Brainbees Solutions Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹4,193.73 crore, comprising fresh issue, aggregating to ₹1,666 crore, as well as an offer for sale, aggregating to ₹2,527.7 crore. The money raised from the fresh issue will be utilised for setting up stores, lease payments, investment in subsidiaries, sales and marketing initiatives, technology and data science costs, and funding inorganic growth through acquisitions. Its shares will be listed on the NSE and BSE.  Here are key details about the Brainbees Solutions IPO:     Company Name  Brainbees Solutions Limited   Company Type  Private    Company Established On  2010   Brainbees Solutions Limited IPO Opening Date  6th August 2024    Brainbees Solutions Limited IPO Closing Date  8th August 2024   Brainbees Solutions Limited IPO Allotment Status  9th August 2024    Credit of Shares to the Demat Account  12th August 2024   Brainbees Solutions Limited IPO Listing Date  13th August 2024    Brainbees Solutions Limited IPO Face Value  ₹ 2 per share   Brainbees Solutions Limited IPO Lot Size  32 shares    Brainbees Solutions Limited IPO Issue Size  Approx ₹ 4,193 crore   Brainbees Solutions Limited IPO to be Listed on  BSE, NSE    Brainbees Solutions Limited IPO Price band  ₹ 440 – ₹ 465 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 2,401 crore  ₹ 5,632 crore  ₹ 6,480 crore    Net Profit/Loss  ₹ -78.6 crore  ₹ -486 crore  ₹-321 crore               Here’s a quick look at Brainbees Solutions Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   India’s largest multi-channel, multi-brand retailing platform for Mothers’, Babies’ and Kids’ products with a network of 1,063 modern stores in India as of 31 March 2024.  Powerful network effects driven by content, brands and data as content on the platform is generated by specialists and parents alike, creating a virtuous cycle of community and new customer acquisition.  Customers trust the FirstCry brand due to customer acquisition efforts such as complimentary gift hampers for mothers who have recently given birth. It does so through engagements with hospitals and maternity clinics, accounting for arrangements with 13,316 hospitals and maternity clinics as of FY24.  Diverse product offerings range from products of global and domestic brands such as Medela, Chicco, Mee-Mee and Funskool, “mompreneurs” (i.e., mothers who operate home-based businesses) and its own home brands.  Higher customer engagement through personalised customer journeys, data-driven sales approach, and centralised inventory management.  As of 31 March 2024, it is a full-stack platform with 900+ contract manufacturers across India and overseas, two subsidiaries, Swara Baby and Solis Hygiene, and an integrated supply chain of 80 warehouses and stockists across 47 cities in India.   Risks and threats   Has total borrowings of ₹462 crore as of 31 March 2024, which subjects it to restrictive conditions imposed by lenders.  Has consistently had negative cash flows from operating activities in the last three fiscals.  It may not be able to obtain sufficient quantity or quality of its products as it engages contract manufacturers to manufacture them.  The company faces competition from organized players in the Indian childcare products market, which consists of horizontal online platforms such as Amazon, Flipkart, and Meesho, vertical online platforms such as Hopscotch, Myntra, and Ajio, and multi-brand and exclusive retailers such as Reliance Trends and Gini & Jony.  Has consistently incurred losses between FY22 and FY24 due to materials cost, other expenses, employee benefits expense, and depreciation and amortization expense.  The company is exposed to the risks associated with reliance upon the services of third-party data centre hosting facilities and other third-party providers.            Brainbees Solutions Limited IPO details  | Brainbees Solutions Limited IPO date  According to the offer document filed by the company with the SEBI, the Brainbees Solutions IPO’s opening date – in other words, the Brainbees Solutions IPO launch date – will be 6th August 2024. The Brainbees Solutions IPO closing date is 8th August 2024. After this, investors will be updated about the allotment status on 9th August 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 12th August 2024. The Brainbees Solutions IPO listing date is 13th August 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Brainbees Solutions Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Brainbees Solutions IPO price band has been set between ₹440 and ₹465 per share. Interested investors can choose a price within this band to apply for the IPO.  The Brainbees Solutions IPO listing price will be determined on 13th August 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Brainbees Solutions Limited IPO Lot size  The Brainbees Solutions IPO details have been declared. The Brainbees Solutions IPO lot size is set at 32 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Brainbees Solutions IPO issue size is approx ₹4,193 crore.           How to pre-apply for the Brainbees Solutions Limited IPO?  You can pre-apply for the Brainbees Solutions Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Brainbees Solutions Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Brainbees Solutions Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Brainbees Solutions Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Brainbees Solutions Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Brainbees Solutions Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Brainbees Solutions Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Brainbees Solutions Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Brainbees Solutions Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Brainbees Solutions Limited IPO  To apply for the Brainbees Solutions Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Brainbees Solutions Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Brainbees Solutions Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.