Brainbees Solutions Limited has filed its monitoring agency report for the quarter ended December 31, 2025, providing detailed insights into the utilization of proceeds from its Initial Public Offer. The report, prepared by ICRA Limited as the monitoring agency, confirms that the company's fund deployment remains aligned with the stated objectives of the IPO.

IPO Proceeds Utilization Overview

During Q3 FY26, the company utilized INR 111.362 crore from its IPO proceeds, bringing the cumulative utilization to INR 839.317 crore. The total IPO proceeds being monitored amount to INR 1,666.000 crore, leaving INR 826.683 crore unutilized as of December 31, 2025.

Key Areas of Fund Deployment

The company's major expenditure during Q3 FY26 was concentrated across several strategic initiatives:

Sales and Marketing Initiatives received the highest allocation with INR 31.492 crore spent during the quarter, bringing total utilization in this category to INR 164.780 crore out of the allocated INR 200.000 crore.

Investment in Digital Age Subsidiary saw significant activity with INR 18.437 crore deployed during the quarter. This includes INR 5.065 crore for setting up new modern stores under the FirstCry brand and INR 13.372 crore for lease payments of existing stores.

Lease Payments for Company Stores accounted for INR 13.679 crore in Q3 FY26, with total utilization reaching INR 50.576 crore against the allocated INR 93.100 crore.

Investment of Unutilized Proceeds

The company has strategically invested its unutilized funds across various fixed deposits and bank accounts:

The total market value of these investments, including accumulated interest of INR 22.002 crore, stands at INR 926.394 crore as of December 31, 2025.

General Corporate Purpose Utilization

Under the General Corporate Purpose category, the company spent INR 36.977 crore during Q3 FY26, primarily on:

• Office and warehouse rent: INR 15.729 crore
• Payment to Facebook India: INR 21.250 crore
• Other operational expenses

Total utilization under this category has reached INR 254.061 crore out of the allocated INR 518.735 crore.

Project Timeline and Compliance

ICRA Limited's monitoring report confirms that all projects remain on schedule for completion between FY25-FY27 as originally planned. The monitoring agency found no deviations from the objects of the issue, with all utilization proceeding as per the disclosures in the offer document.

The company's systematic approach to fund deployment, combined with prudent investment of unutilized proceeds in fixed deposits earning competitive returns, demonstrates disciplined capital management while maintaining flexibility for future strategic initiatives.

Firstcry (Brainbees Solutions) has completed the allotment and transfer of 1,35,024 equity shares through the exercise of Employee Stock Options (ESOPs) on February 03, 2026. The Nomination and Remuneration Committee approved the allotment of 27,825 equity shares and transfer of 1,07,199 equity shares of face value Rs. 2 each, fully paid up.

ESOP Exercise Breakdown

The share allotment and transfer were executed across three employee stock option plans:

The exercises were conducted through both cash exercise and cashless exercise methods. Under the cashless exercise option, the Trust is authorized to sell shares on behalf of option holders to recover exercise price and tax amounts.

Financial Impact and Exercise Pricing

The share allotment resulted in an increase of the company's paid-up share capital from Rs. 1,04,40,28,318 to Rs. 1,04,40,83,968. The total issued shares after this allotment stand at 52,20,41,984.

Under BBESOP 2011, the exercise involved 2,825 shares at Rs. 7.44 per share and 2,000 shares at Rs. 15.44 per share.

Outstanding Options and Vesting Status

As of the exercise date, significant options remain vested under both active plans:

• BBESOP 2011: 1,33,520 options vested (excluding exercised/relinquished options)
• BBESOP 2022: 1,34,56,931 options vested (excluding exercised options)

The plans have also seen substantial lapses, with 12,67,321 options lapsed under BBESOP 2011 and 6,02,478 options lapsed under BBESOP 2022.

Regulatory Compliance and Share Rights

The allotment was conducted in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The company received in-principle approvals from both NSE and BSE in December 2024.

The newly allotted and transferred equity shares rank pari-passu with existing equity shares in all respects and are not subject to any lock-in restrictions. The diluted earnings per share following the exercise stands at Rs. 0.595, calculated based on H1FY26 earnings.