The Indian IPO market is abuzz with activity as several companies gear up for their much-anticipated public listings. Among the most talked-about is Brainbees Solutions, the owner of the popular baby products brand FirstCry, which is set to launch its Rs 4,193 crore Initial Public Offering (IPO) on Tuesday. Alongside FirstCry, Akams Drugs and Pharmaceuticals and Hero Fincorp are also in the spotlight with their respective IPO plans. Here’s a detailed look at these upcoming IPOs.

FirstCry IPO: A Leap into the Public Market

Brainbees Solutions, known for its flagship brand FirstCry, is poised to make a significant entry into the public markets with a Rs 4,193 crore IPO. The company has set a price band of Rs 440-465 per share, and at the upper end of this price band, FirstCry is expected to be valued at Rs 24,142 crore.

Breakdown of the IPO:

• Fresh Fundraising: Rs 1,666 crore
• Secondary Share Sale: Rs 2,528 crore

The secondary share sale will see major stakeholders like SoftBank, Mahindra & Mahindra, Premji Invest, and TPG offload their stakes. The proceeds from the IPO are earmarked for opening new stores, expanding digital operations, and extending the company’s reach into Saudi Arabia—a clear sign of FirstCry’s ambitious growth plans.

Founded in 2010, FirstCry has established itself as a dominant player in the baby products market, with a robust multi-channel retail presence. Despite its strong market position, the company reported a net loss of Rs 321 crore in FY 2024 on an income of Rs 6,480 crore. Interestingly, FirstCry’s valuation of approximately $2.8 billion remains consistent with its 2023 valuation of $2.7 billion, reflecting steady investor confidence.

CEO and Managing Director Supam Maheshwari mentioned that the valuation was a result of discussions with investors and bankers, taking into account the strong investor interest. He also noted that the IPO size was adjusted based on the company’s capital requirements.

Akams Drugs and Pharmaceuticals: A Strong Demand Surge

Akams Drugs and Pharmaceuticals is another company making waves in the IPO market. Its IPO received a staggering response, with applications exceeding 50 times the available shares. Here’s how the different investor categories responded:

• Institutional Investors: 68 times oversubscribed
• High Net-Worth Individuals (HNIs): 40 times oversubscribed
• Retail Category: 20 times oversubscribed

The IPO, totaling Rs 1,857 crore, includes a fresh fundraise of Rs 680 crore and a secondary share sale of Rs 1,177 crore. The proceeds will primarily be used to repay existing loans, which will strengthen the company’s financial position.

At the higher end of the price band, Akams Drugs will be valued at Rs 10,687 crore post-IPO. The company reported a revenue of Rs 4,178 crore in FY 2024, marking a 14% growth compared to the previous year, indicating a strong operational performance.

Hero Fincorp: Expanding Financial Horizons

Hero Fincorp, the financial services arm of two-wheeler giant Hero MotoCorp, has also thrown its hat into the IPO ring, submitting an application for a Rs 3,668 crore IPO. This IPO will consist of:

• Fresh Fundraising: Rs 2,100 crore
• Offer for Sale (OFS): Rs 1,568 crore

The shareholders looking to sell their stakes in this OFS include AHVF 2 Holdings (Apollo Management), Apis Growth, Link Investment Trust, and Otter. Hero MotoCorp currently holds a 39.56% stake in Hero Fincorp, with the Munjal family, the promoters, holding about 35%.

Hero Fincorp, established in 1991, plays a crucial role in providing loans to two-wheeler buyers through Hero MotoCorp’s vast network of 2,000 retail touchpoints. The company’s strong linkage with Hero MotoCorp provides it with a strategic advantage in the financial services sector, particularly in the retail lending space.

The flurry of IPO activity in India, led by companies like FirstCry, Akams Drugs, and Hero Fincorp, reflects the robust investor sentiment and the potential for growth in various sectors. As these companies make their public market debut, they offer investors an opportunity to participate in their growth stories. Each of these IPOs brings something unique to the table—be it FirstCry’s ambitious expansion plans, Akams Drugs’ strong demand, or Hero Fincorp’s strategic financial services position. Investors and market watchers alike will be keenly observing these listings, which could set the tone for the IPO market in the coming months.