FirstCry Shares Debut with Strong Gains

Shares of FirstCry made a splash on the Bombay Stock Exchange today, opening at ₹625—up a whopping 34.4% from its original offer price.

The company, Brainbees Solutions, is the parent of FirstCry and reported an impressive 15% increase in its operating revenue for FY24, totaling ₹6,481 crore. However, it’s also facing challenges with losses down to ₹321 crore, which is a 34% improvement.

As of this afternoon, Brainbees Solutions saw its shares continue to rise, trading up 5.31%. Despite this initial success, market experts are urging investors to think twice about holding onto their shares due to ongoing financial concerns.

Akriti Mehrotra, a Research Analyst at StoxBox, pointed out that while FirstCry is effectively blending its physical and online platforms, the company is struggling with financial issues like negative cash flow and increased debt.

Before making its market debut, Brainbees Solutions had raised ₹1,885.8 crore from anchor investors, and the anticipation was clear with the IPO being oversubscribed 12.2 times at the end of the bidding.

Today’s robust stock market debut saw FirstCry trading significantly above estimated fair values, which experts say might not reflect the company’s underlying financial troubles.