“2.95 lakh shares gifted… but the market got the baby bump!”
🧾 At a Glance:
Brainbees Solutions Ltd. (aka FirstCry) just dropped a mega ESOP bomb, gifting and transferring 5.45 lakh shares under its 2011 and 2022 employee stock plans.
CMP? ₹374.
Stock? +4.5% today.
ESOPs? Diluted AF.
Retail investors? Still crying. 😢
📊 What Just Happened?
Here’s the short and sweet breakdown of the baby bonus:
| Particulars | ESOP 2011 | ESOP 2022 | Combined |
|---|---|---|---|
| 🆕 Shares Allotted | 1,29,866 | 1,65,150 | 2,95,016 |
| 🔁 Shares Transferred (Trust to employees) | – | 2,50,567 | 2,50,567 |
| 💸 Total Dilution Impact | ✅ | ✅ | ~5.45 lakh shares |
| 💰 Exercise Price | ₹9.37–₹28.08 | ₹2 flat | Guess who got the better deal? 😏 |
| 🎉 CMP | ₹374.00 | ₹374.00 | Happy realization gains to all! |
🧮 Wait… What’s the Maths?
Company gave away 2,95,016 new shares and transferred 2,50,567 old shares.
That’s ₹20.3 crore worth of equity at CMP – and most of it was picked up at ₹2-28.
Yup, the janmashtami of ESOP allotments.
🎯 Money collected from employees for this round?
- From BBESOP 2011: ₹19.15 lakhs
- From BBESOP 2022: ₹8.31 lakhs
- Total = ₹27.5 lakhs
And how much is it worth now?
→ ~₹20.3 crore on the open market.
📈 Share Capital Update
| Metric | Value |
|---|---|
| 🧾 Previous Paid-up Capital | ₹1,04,26,77,282 |
| ➕ New Shares Added | ₹5,90,032 (2.95 lakh × ₹2) |
| 📊 New Paid-up Capital | ₹1,04,32,67,314 |
| 🧮 New Total Shares | 52,163,657 |
🧑💼 Who All Got It?
- Under 2011 Plan: Senior OGs who’ve seen FirstCry go from diapers to IPO dreams.
- Under 2022 Plan: Mostly current warriors — engineers, marketers, HR (yes, even HR 😅).
Bonus twist: BBESOP 2022 included cashless exercise, which means the ESOP Trust sold shares on behalf of employees to cover their taxes and exercise price. Talk about getting shares without spending a dime.
💣 EduInvesting Take: “Baby Steps for You, Giant Leaps for Insiders”
- Company diluted 0.57% of its capital in a single go (5.45 lakh out of ~9.1 crore shares).
- Most employees got in at ₹2, while retail is paying ₹374.
- This is not even the main ESOP wave – we’ve barely scratched the diaper here.
🤱🏼 “Retail investors thought they were buying a cute baby unicorn. Turns out, insiders were already feeding on the milk.”
🧐 Risks and Red Flags
🚨 Dilution Watch: With 1.5 crore more options still vested under 2022 plan, and over 12 lakh options lapsed from 2011, brace yourself for more allotments.
📉 Cashless Exercise: It’s great for employees. Not always for shareholders. Trust selling stock = overhang pressure.
🔐 Lock-in? Nope. Shares are free to sell instantly. Expect some insider fireworks.
🔮 So What Now?
If you’re holding FirstCry because of cute babies and Instagram ads, remember this:
- The stock popped today on news momentum.
- But long-term? Dilution ain’t over.
- CMP ₹374 is high… unless earnings keep growing like a baby on Cerelac.
Author: Prashant Marathe
Date: May 23, 2025
Tags: FirstCry, ESOP Allotment, IPO Watch, Brainbees Solutions, Retail Investors, Dilution, EduInvesting, Equity Allotment, Insider Gains, Funny Finance
