The baby and kids products retailer Firstcry’s parent company, Brainbees Solutions Limited, received an overwhelming response on the listing day of the initial public offering (IPO), as the stock rose nearly 46 per cent after listing on the National Stock Exchange (NSE) on Tuesday, August 13.
Brainbees shares closed at ₹679.10 after Tuesday’s trading session, increasing nearly 52 per cent above the offer price. The offer price for the IPO was ₹465, and the company raised close to ₹4,200 crore from the public issue.
The Brainbees public offering was launched at a time when other major public issues like Ola Electric were building their path into the market. Stock market experts expected a listing gain of 15 to 18 per cent, but the public issue exceeded market expectations.
IPO receives overwhelming response
The IPO received an overwhelming response from equity investors. The issue was subscribed 12.22 times overall, and it raised ₹1,900 crore from its anchor book round. The quota for Qualified Institutional Buyers (QIBs) was subscribed 19.30 times, while the Non-Institutional Investors (NIIs) subscribed 4.68 times, and the retail investors subscribed 2.31 times.
SoftBank-backed Brainbees was added to India‘s $4.9 trillion stock market and the listing was SoftBank’s third hit in the Indian IPO market. Brainbees’ positive results came after Unicommerce eSolutions and Ola Electric, both of which made a good entry into the stock market.
The National Stock Exchange (NSE) saw 213 initial public offering (IPO) listings in 2023-24. This accounted for nearly one IPO listing every market session in the previous financial year. There were 244 full trading sessions held in the financial year 2023-24.
“Of the 244 full trading sessions held in the last financial year, NSE witnessed the listing of 213 companies,” said Ashishkumar Chauhan, managing director and chief executive officer of the National Stock Exchange, in the Brainbees NSE listing event on Tuesday. “Almost one IPO is happening every trading session, which is a great testimony to India’s entrepreneurial activity and the trust of investors in Indian entrepreneurs,” he said.
Chauhan also highlighted that the listing of the Brainbees IPO would inspire many more companies to look towards the capital markets as a “promising alternative.”
