FirstCry parent Brainbees Solutions files IPO papers | Image:FirstCry
Cricket legend Sachin Tendulkar and Infosys co-founder Kris Gopalakrishnan reportedly acquired shares in FirstCry after SoftBank recently offloaded stake worth Rs 630 crore in the company.
Pune-based e-commerce giant, FirstCry’s parent company, Brainbees Solutions, has officially filed its Initial Public Offering (IPO) papers with the Securities and Exchange Board of India (SEBI) on December 28, aiming to raise Rs 1,816 crore through share sale.
In addition to the fresh equity shares, existing investors including automotive powerhouse Mahindra & Mahindra (M&M), private equity firm TPG, NewQuest Asia, and SoftBank will collectively sell 5.44 crore shares via an Offer for Sale (OFS). M&M plans to divest a 0.58 per cent stake, selling approximately 28 lakh shares.
The IPO funds will be utilised for expanding operations, opening new stores and warehouses, and venturing into international markets, according to the Draft Red Herring Prospectus (DRHP) filed by Brainbees.
SoftBank’s strategic move and Sachin Tendulkar’s entry
SoftBank has offloaded shares worth Rs 630 crore in FirstCry, reducing its stake as the e-commerce major gears up for its IPO. According to reports, Cricket legend Sachin Tendulkar and Infosys co-founder Kris Gopalakrishnan were among the high-net-worth individuals acquiring shares in a secondary transaction.
M&M’s divestment
Automobile manufacturer Mahindra & Mahindra Ltd. has decided to divest a 0.58 per cent stake in Brainbees Solutions as part of the OFS in FirstCry’s upcoming IPO. The number of shares to be sold by M&M, totaling 28.06 lakh equity shares, amounts to 0.58 per cent of the existing issued and paid-up equity share capital of Brainbees.
The selling price of these shares will be determined during the Book Building Process in consultation with the Book Running Lead Managers, including Kotak, Morgan Stanley, Bofa Securities, JM Financial, and Avendus.
Financial performance and future outlook
FirstCry’s consolidated net loss widened from Rs 79 crore in FY22 to Rs 486 crore in FY23, despite a robust 135 per cent increase in consolidated revenue to Rs 5,633 crore. The company anticipates potential challenges in maintaining its growth rate due to expenses related to marketing, expansion, retail distribution, and stock options.
