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Brainbees Solutions, the parent company of omnichannel maternity and babycare platform FirstCry, saw its initial public offering (IPO) subscribed about 3X on its third day, according to data from BSE.

The IPO had received a tepid response on its first and second day of bidding attracting only 11% and 30%, respectively, affected by global market volatility.

The employee reserved category led the subscription, with the offering subscribed about 5.4 times followed by over 3X subscriptions in the qualified institutional buyers (QIBs) category.

FirstCry has set its IPO price band between Rs 440 and Rs 465 per equity share for its nearly $3-billion initial public offering (IPO). The company aims to list on domestic stock exchanges by August 11.

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FirstCry IPO sees lukewarm response from investors on Day 2; gets subscribed 30%

The offering consists of a fresh issue of Rs 1,666 crore and OFS of 543 lakh equity shares by its existing shareholders. Supam Maheshwari, founder and CEO, is not selling any stake. 

Mahindra & Mahindra will participate in the offer-for-sale (OFS) component by selling 10% of its total shareholding, while SoftBank will reduce its stake from 25% to about 20%. The Japan-based investment giant on Thursday said that Vision Fund 1, through which it invested in companies like Ola, OYO and FirstCry, gained $1.4 billion quarter-on-quarter (QoQ).

Notably, FirstCry does not have any promoters backing it, and its selling shareholders, except for Schroders, will dilute approximately 11% of their total share capital through the OFS.

According to the draft red herring prospectus, the company reported revenue of Rs 6,480.9 crore and an adjusted EBITDA margin of 4.2% for FY24. However, it incurred a loss of around Rs 321 crore.