Anchor investor round will open a day before the IPO launch on August 5, the company said in its red herring prospectus (RHP) filed with the markets regulator Sebi. The price band will be announced later on in the week.
Mahindra & Mahindra (M&M) plans to sell up to 28.06 lakh shares of the company in the IPO. SoftBank-operated SVF Frog will sell 20,318,050 shares. Others participating in the OFS include PI Opportunities Fund, TPG Growth and NewQuest Asia, Apricot Investments, Satyadharma Investments, Schroders Capital, Sage Investment and Pratithi Investment.
Last valued at under $3 billion, Supam Maheshwari-led FirstCry is likely to price itself at around $3 billion for the IPO, according to reports.
In FY24, the company reported a 15% growth in operating revenue at Rs 6,481 crore, while it reduced losses by 34% to Rs 321 crore during the same period. Over the last three financial years, the company’s revenue from operations has grown to 6,481 crore for FY24 from Rs 2401 crore FY 2022. Brainbees said it is the largest multi-channel retailing platform for mothers’, babies’ and kids’ products, in terms of GMV, for FY24.As of March 2024-end, the company had over 2.12 million square feet of retail space and 1,063 modern stores in 533 cities. FirstCry modern stores sell multiple brands, including third-party brands, while BabyHug modern stores exclusively sell ‘BabyHug’ products.The SoftBank and Premji Invest-backed firm said it will utilize net proceeds from the IPO towards setting up new modern stores under the brand ‘BabyHug’, investment in subsidiary Digital Age, overseas expansion, and sales and marketing initiatives.The list of individuals selling shareholders includes Tata Sons Chairman Emeritus Ratan Tata and FirstCry Co-Founder and CEO Supam Maheshwari.
Tata, who had picked up a 0.02% stake for Rs 66 lakh in the startup, will sell all his 77,900 shares in the IPO. His average cost of acquisition comes to Rs 84.72 per share, according to the RHP. His total investment in the company, therefore, comes to about Rs 66 lakh.
Book-running lead managers to the IPO include Kotak Investment Banking, Morgan Stanley, BofA Securities, JM Financial, and Avendus.