Ratan Tata to Divest Entire Stake in FirstCry: Company Aims for IPO, Submits Draft Papers to SEBI
Brainbiz Solutions, FirstCry’s Online Retailer, Files Draft Papers for IPO
Brainbiz Solutions, the parent company of FirstCry’s online retailer, has filed draft red herring prospectus (DRHP) with the market regulator SEBI to launch its initial public offering (IPO). According to the draft papers, Brainbiz Solutions plans to issue approximately $218 million worth of new shares, translating to around INR 1,816 crore.
Ratan Tata, Chairman Emeritus of Tata Sons, and Supam Maheshwari, Co-founder and CEO of FirstCry, along with other current investors, plan to sell 54.4 million equity shares, equivalent to 5.44 crore shares, through an offer-for-sale (OFS). Besides Tata and Maheshwari, the roster of selling shareholders includes SoftBank and Mahindra & Mahindra (M&M).
The move to go public reflects the company’s growth and market confidence, making it an anticipated event in the Indian e-commerce sector.
SoftBank Holds 25.5% Stake in FirstCry; Major Shareholders in IPO Revealed
FirstCry’s largest shareholder is SoftBank, holding a substantial 25.5% stake in the company, while M&M possesses a 10.98% stake. SoftBank’s unit SVF IPO is set to sell 2.03 crore shares. Through this issuance, M&M will sell 0.58% or 28 lakh shares in Brainbiz Solutions. Premji Invest plans to sell 86 lakh shares during the offer-for-sale (OFS).
Ratan Tata, Chairman Emeritus of Tata Sons, and Supam Maheshwari, Co-founder and CEO of FirstCry, are prominent individuals planning to divest shares in the upcoming IPO. According to the draft red herring prospectus (DRHP), Ratan Tata has offered to auction his 0.02% stake for INR 66 lakh. He is currently planning to sell all of his 77,900 shares, acquired at a price of INR 84.72 per share.
FirstCry Operates 936 Stores in India; Plans Expansion in Saudi Arabia
FirstCry has announced its intention to utilize the proceeds from the upcoming IPO to expand its network of stores, both in India and Saudi Arabia, leveraging the consolidation of recently acquired businesses. The company currently operates a network of 936 stores in India but has not disclosed the count of its stores in Saudi Arabia until now.
With an increased focus on expanding its footprint and strengthening its position in the market, FirstCry aims to use the IPO-generated funds strategically. The company’s network of stores is expected to witness significant growth, particularly in the Saudi Arabian market, where the exact number of stores remains undisclosed.
For the financial year 2022-23, FirstCry reported a consolidated revenue of ₹5,632.53 crores, marking a substantial increase. The company’s consolidated net profit for the financial year ending March 31, 2023, stood at ₹486.05 crores. The newborn and infant product retailer has demonstrated robust financial performance, and the IPO is anticipated to further fuel its expansion plans and strengthen its market presence.
