FirstCry IPO: FirstCry parent Brainbees Solutions submits IPO documents to raise Rs 1,816 crore; SoftBank, M&M, Ratan Tata to offload shares

FirstCry IPO: Brainbees Solutions, which operates the children’s wear brand FirstCry, has officially initiated the process for its Initial Public Offering (IPO) by submitting the necessary documents to the Securities and Exchange Board of India (SEBI).
According to ET, the IPO, whose size is currently undisclosed, comprises a new share issue valued at up to Rs 1,816 crore.The offer for sale (OFS) segment involves the sale of up to 54.4 million shares by existing investors such as SoftBank, Mahindra & Mahindra (M&M), and US private equity fund TPG.
SoftBank-operated SVG Frog is planning to sell 2.03 crore shares, while M&M aims to divest up to 28.06 lakh shares in the company. Other contributors to the share sale include PI Opportunities Fund, TPG, NewQuest Asia, Apricot Investments, Valiant Mauritius Partners, TIMF Holdings, Think India Opportunities Master Fund, and Schroders Capital Private Equity Asia.SoftBank holds the largest stake in FirstCry, with a 25.5% share, followed by M&M with a 10.98% stake.
Ratan Tata, the Chairman Emeritus of Tata Sons, and Supam Maheshwari, the Co-Founder and CEO of FirstCry, are among the individuals selling shares in the upcoming IPO.
Ratan Tata, who initially invested Rs 66 lakh for a 0.02% stake in FirstCry, plans to sell all 77,900 shares. His average cost per share is Rs 84.72, resulting in a total investment of about Rs 66 lakh, as per FirstCry’s draft red herring prospectus filed with Sebi.

The net proceeds from the IPO will be allocated for various purposes, including establishing new modern stores, covering warehouse costs, lease payments for existing stores, funding sales and marketing efforts, technology and data science expenses, supporting inorganic growth through acquisitions, and other strategic initiatives. Additionally, a portion of the funds will be directed towards the overseas expansion, particularly in Saudi Arabia.
The book running lead managers overseeing the IPO are Kotak Investment Banking, Morgan Stanley, BofA Securities, JM Financial, and Avendus.
In the fiscal year 2022-23, FirstCry reported a consolidated net loss of Rs 486.05 crore, while its consolidated revenue surged to Rs 5,632.53 crore, marking an increase.
For the financial year ending March 31, 2022, FirstCry recorded a net loss of Rs 78.68 crore, with revenue from operations reaching Rs 2,401.28 crore. SoftBank’s initial investment in FirstCry amounted to USD 400 million, valuing the startup at USD 900 million.
Notably, SoftBank recently divested shares worth USD 310 million in the omnichannel retailer, as reported earlier this week. As FirstCry ventures into the IPO landscape, it signifies a pivotal moment for the company’s growth and market positioning.