Brainbees Solutions Limited is Bharat's largest multi-channel retailing platform for Mothers', Babies' and Kids' products, in terms of GMV, for the Financial Year 2024, according to the RedSeer Report, with a growing presence in select international markets. In Bharay, they sell Mothers', Babies' and Kids' products through the online platform, company-owned modern stores, franchisee-owned modern stores and general trade retail distribution. Company has expanded internationally in select markets, establishing a presence in UAE and KSA in 2019 and 2022 respectively. According to the RedSeer Report, they are the largest specialist online Mothers', Babies' and Kids' Product retail platforms in UAE, in terms of GMV, for the Financial Year 2024. Further, in KSA, they are the largest online-first Mothers', Babies' and Kids' product-focused retail platform, according to the RedSeer Report. Across the platform, they offer products from third-party Indian brands, global brands, and their home brands. BabyHug, one of FirstCry’s home brands, is the largest multi-category Mothers', Babies', and Kids' products brand in Bharat in terms of GMV, for the Financial Year 2024, according to the RedSeer Report. Company organizes its business into four reportable segments: India multi-channel, International, GlobalBees Brands and Others. Company's multi-channel retailing platform includes FirstCry’s online platform accessible through the mobile application and website, FirstCry modern stores comprising franchisee-owned, franchisee-operated modern stores ('FOFO'), company-owned and company-operated modern stores ('COCO') as well as general trade retail distribution. Further, they have a network of 1,063 FirstCry and BabyHug modern stores in 533 cities in 28 states and five union territories across India with over 2.12 million square feet of retail space, as at March 31, 2024. From all the stores, FOFO stores, Baby HUG COCO stores and FirstCry COCO stores are 628, 284 and 151 respectively. They offer products in various categories, including apparel, footwear, baby gear, nursery, diapers, toys and personal care, amongst others. As at March 31, 2024, across the platform, they offer more than 1.65 million SKUs from 7,580 brands, including third-party Indian brands, global brands, and their home brands. As per financial performance, Brainbees Solutions Limited has posted total income / net profits of Rs 2,516.91 Cr / Rs (78.69) Cr (FY22), Rs 5,731.27 Cr / (486.06) Cr (FY23) and Rs 6,575.08 Cr / Rs (321.51) Cr (FY24). So as per previous financials data, company has shown good sales growth, but making consistent losses and cash-flow is also negative. Company has an average EPS of Rs (6.71) and average RoNW of (8.92)% for last three fiscals. Issue is priced at a P/BV of 6.97 as per NAV of Rs 66.68/- as on 31.03.24. As company is making consistent losses, so there is no point to calculate PE ratio. As per RHP, there is no listed peers. On BRLM's front, five lead managers are associated with this IPO, and have handled around 68 IPOs ( Mainboard and SME ) in last three fiscals. Kotak Mahindra Capital Company Limited: This is 24th IPO from this BRLM. From last 10 IPOs, all opened above issue price on the day of listing. As of now, from last 10 IPOs, all are trading above issue price. (As on 01.08.23) Morgan Stanley India Company Private Limited: This is 3rd IPO from this BRLM. From last 2 IPOs, all opened above issue price on the day of listing. As of now, from last 2 IPOs, one is trading below issue price. (As on 01.08.23) Bofa Securities India Limited: This is 5th IPO from this BRLM. From last 4 IPOs, one opened below issue price on the day of listing. As of now, from last 4 IPOs, one is trading below issue price. (As on 01.08.23) JM Financial Limited: This is 39th IPO from this BRLM. From last 10 IPOs, two opened below issue price on the day of listing. As of now, from last 10 IPOs, one is trading below issue price. (As on 01.08.23) Avendus Capital Private Limited: This is First ipo for this BRLM. (As on 01.08.23) As per financials, Brainbees Solutions Limited has shown good sales growth, RoNW is (8.65)% and P/E is not available as company is making losses. So, issue looks very aggressively priced. Company is in business of multi-channel retailing platform for Mothers', Babies' and Kids' products, which is highly competitive and fragmented business segmented. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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