FirstCry parent Brainbees Solutions lists at 40% premium; Unicommerce shares zoom 118% on debut

Despite a lackluster broader market, new-age companies FirstCry and Unicommerce eSolutions made blockbuster debuts on the stock market today, which was much higher than Street expectations. Shares of Brainbees Solutions, the parent of FirstCry, listed at ₹651 on the NSE, a premium 40% over the IPO price of ₹465 per equity share. On the other hand, Unicommerce eSolutions shares made a stellar debut at ₹235, up 117.6% over the initial public offering (IPO) price of ₹108 apiece. On the BSE, FirstCry shares listed 34.4% higher at ₹625, while Unicommerce stock opened up by 113% at ₹230.

Post listing, FirstCry shares surged as much as 50% to hit a high of ₹698 on the NSE, while the market capitalisation (m-cap) of SoftBank-backed e-commerce unicorn rose to ₹36,208 crore. Similarly, the stock price of Unicommerce rallied 137% to ₹255.99 and its m-cap climbed to ₹2,445 crore.

The debut of both Brainbees Solutions and Unicommerce eSolutions were better than Street expectations as the stocks were commanding grey market premiums (GMP) of ₹87 and ₹69 apiece, respectively, in the unlisted market. The estimated listing price of Brainbees Solutions in the grey market was ₹552 and that of Unicommerce was ₹177 per share.

“The IPO of FristCry 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,” says Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

“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 says.

On the listing of Unicommerce, Nyati says, “This exceptional listing underscores the company's strong fundamentals and growth prospects. However, investors are advised to consider some profit booking at this level, and those who want to hold it may keep a stop loss at ₹210.”

She adds that Unicommerce’s strong market position as a leading e-commerce enablement SaaS platform and its proven track record of profitable growth solidifies investor confidence. While challenges like competitive pressures and negative cash flows remain, the initial market response highlights the immense potential of the company in the burgeoning e-commerce ecosystem.

The ₹4,193.73 crore issue of FirstCry was subscribed 12.2 times, with quota reserved for qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail investors subscribing by 19.30 times, 4.55 times, and 2.14 times, respectively. The portion set aside for employees was subscribed 6.32 times.

Founded in 2010, the country’s biggest retailer in the mother and childcare segment offered shares at a price band of ₹440-465 per share and lot size of 32 shares. The issue comprised fresh equities worth ₹1,666 crore and an offer for sale (OFS) of up to 5.2 crore shares worth ₹2,527.73 crore.

On the other hand, the ₹276 crore IPO of Unicommerce, the country’s largest e-commerce enablement Software-as-a-Service (SaaS) platform, received overwhelming response from investors, with the issue receiving 167 times bids. The issue, which was offered at a price band of ₹102-108 per equity share, saw maximum bids from NIIs, as the portion reserved for them was booked 251.71 times. The quota reserved for QIB was booked 138.75 times and the retail segment was booked 126.01 times.

The IPO of Unicommerce was completely an offer for sale of 2.56 crore shares by selling shareholders. As it is entirely an OFS, the IPO proceeds will go to shareholders offloading their stakes.

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