SUMMARY
- Brainbees Solutions’ shares dropped by more than 5% to reach an all-time low at Rs 534.20 each on Nov 11.
- On Sunday, the company announced that the investigation by the Mumbai assistant commissioner of state tax.
- The stock prices of Brainbees began to fall on November 7.
The stock prices of the kids’ brand FirstCry‘s parent company Brainbees Solutions dropped by more than 5% to reach an all-time low at Rs 534.20 each on Monday (November 11).
On Sunday, the company announced that the investigation by the Mumbai assistant commissioner of state tax, started on November 6, and ended on November 10.
“The company has fully cooperated with the officials and has responded to all the clarifications and details sought by them,” the company said in a statement, adding that it payed Rs 1.74 crore (including interest) on account of mismatch in GST returns during FY19, FY20, FY21, FY22, and FY23.
“The officials had also raised some queries with respect to the GST implications on the amount paid towards IPO expenses (in respect of expenses incurred towards fresh issuance of shares during the IPO). The company has provided suitable explanations in this regard,” the company statement added.
At 12:40 PM, shares of Brainbees were down by 5.43% at Rs 534.20 on the BSE.
The stock prices of Brainbees began to fall on November 7 following its announcement to the exchanges that it was under scrutiny by the tax authorities.
In its filing with the exchange, the company mentioned that the investigation into its operations started at its main office in Pune and one of its warehouses in Bhamboli.
The firm previously got notifications from the Income Tax department regarding its ESOP costs, which amounted to INR 79.7 Cr for the assessment years 2018-19 to 2021-22.
FirstCry is an omnichannel marketplace for baby and children’s products, established in 2010 by Supam Maheshwari and Amitava Saha. The business was recently listed on both the BSE and NSE, achieving a 34% and 40% premium, respectively, in August.
In Q1 FY25, the company reduced its overall net loss by 31% to Rs 75.68 crore from Rs 110.42 crore in Q1 FY24. Its operating revenue grew by 10% to Rs 1,652.07 crore during this period, from Rs 1,496.93 crore in Q1 FY24.
