Indian baby products retailer FirstCry jumps 52% in trading debut (updated)

Brainbees Solutions

13/08/2024 06:32

(Adds analysts' comments, details from paragraph 3, updates
shares)
    By Manvi Pant
       BENGALURU, Aug 13 (Reuters) - Shares of Indian baby
products retailer FirstCry  BRAE.NS  surged 52% in its trading
debut in Mumbai on Tuesday, as investors bet on the booming
child care market in the world's most populous country.
    The stock listed at 651 rupees on the National Stock
Exchange of India, compared with an offer price of 465 rupees. 
    The company's $501 million public float garnered bids worth
$3.36 billion last week. FirstCry is India's first pure-play
baby products and childcare retailer to go public and is the
largest retailer in the segment, according to consultancy
Redseer. 
    FirstCry has debuted at a better-than-expected price, a move
that could be attributed to its unique branding and as it is the
largest player, said Arun Kejriwal, founder of Kejriwal Research
& Investment Services.  
    The company, which is backed by Japan's SoftBank  9434.T ,
TPG  TPG.O  and India's Mahindra & Mahindra  MAHM.NS , has
reported revenue growth through the years, while its net loss
narrowed significantly in fiscal year 2024. 
    The investment from IPO proceeds will help ensure that
future growth continues at a high rate, Akshay D'souza, an
independent retail industry consultant said. 
    FirstCry sought to cash in on India's red-hot stock market
that has hit record highs more than 50 times this year. Its
share sale followed IPOs of companies like Ola Electric
 OLAE.NS , Allied Blenders  ALLE.NS  and Emcure Pharmaceuticals
 EMCU.NS . 


 (Reporting by Manvi Pant in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))