Shares of Indian baby products retailer FirstCry surged 52% in its trading debut in Mumbai on Tuesday, as investors bet on the booming childcare market in the world’s most populous country.
The stock listed at 651 rupees on the National Stock Exchange of India, compared with an offer price of 465 rupees.
The company’s $501 million public float garnered bids worth $3.36 billion last week. FirstCry is India’s first pure-play baby products and childcare retailer to go public and is the largest retailer in the segment, according to consultancy Redseer.
FirstCry has debuted at a better-than-expected price, a move that could be attributed to its unique branding and as it is the largest player, said Arun Kejriwal, founder of Kejriwal Research & Investment Services.
The company, which is backed by Japan’s SoftBank, TPG, and India’s Mahindra & Mahindra, has reported revenue growth through the years, while its net loss narrowed significantly in fiscal year 2024.
The investment from IPO proceeds will help ensure that future growth continues at a high rate, Akshay D’souza, an independent retail industry consultant said.
FirstCry sought to cash in on India’s red-hot stock market that has hit record highs more than 50 times this year. Its share sale followed IPOs of companies like Ola Electric, Allied Blenders, and Emcure Pharmaceuticals.
Reuters