Shares of Asia’s largest e-commerce portal for baby and kids’ products surged 1 percent on Tuesday after its subsidiary acquired a 24 percent stake in another step-down subsidiary Dynamic IT Solution Private Limited for a value of Rs.4.5 crores.
Price Movement
In Tuesday’s trading session, the parent company of First Cry, Brainbees Solutions share price surged 1 percent, reaching an intraday high of Rs.669.45 per share from its previous close of Rs.664.00 apiece. The price has since retreated since then and is currently trading at Rs.648.50 per share.
What happened
GlobalBees Brands Private Limited, a subsidiary of Brainbees Solutions Ltd, has invested Rs.4.5 crores in Dynamic IT Solution Private Limited, a step-down subsidiary. This acquisition increases their stake in Dynamic IT Solution as per the Shareholders Agreement dated December 15, 2021.
The transaction involves cash consideration for a 24 percent shareholding. Dynamic IT Solution, incorporated on October 31, 2002, operates in India, specialising in designing, developing, trading, and supplying software and sports and fitness products under the brand name “Strauss.”
The turnover of Dynamic IT Solution Private Limited over the past three years is as follows: Rs.27.4 crores in 2023-24, Rs.23.29 crores in 2022-23, and Rs.19.03 crores in 2021-22.
Financial Performance
In its latest financial update, Brainbees reported net sales of Rs.1,652 crores for Q1 FY25, a 13.2 percent increase from Rs.1,407 crores in Q1 FY24. Although the company remains unprofitable, it has reduced its net losses to Rs.76 crores in Q1 FY25, down from Rs.110 crores in Q1 FY24.
Shareholding Pattern
As of June 2024, the shareholding pattern of Brainbees Solutions Limited shows that promoters do not hold any stake, while Foreign Institutional Investors hold 7.4 percent. Domestic Institutional Investors and Retail Investors hold 15.5 percent and 66.6 percent, respectively.
Sachin Tendulkar, who invested Rs.10 crores in the company before its IPO, acquired 2,05,153 shares. Post-IPO, his stake appreciated to approximately Rs.13.82 crores, reflecting a gain of over 38 percent.
Company Overview
Brainbees Solutions, commonly known as FirstCry, is a prominent Indian e-commerce platform established in 2010, focusing on products for mothers, babies, and children. The company strives to be a comprehensive destination for parenting needs, providing over 1.5 million SKUs from more than 7,500 brands across diverse categories.
Written by – Siddesh S Raskar
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