Details of the FirstCry IPO That Opens on August 6

FirstCry's parent company, BrainBees Solutions Ltd, has announced that its red herring prospectus (RHP) indicates that the IPO would begin on August 6 and conclude on August 8.

FirstCry reportedly plans to ask for a valuation between $2.9 and $3 billion when it goes public. Among the components of FirstCry's IPO revealed in its revised DRHP was an offer for sale (OFS) of up to 54,391,592 equity shares and a new issue of equity shares totaling up to INR 1,666 crore.

Since FirstCry's total sales were more than INR 6,500 crore in FY24, the numbers suggest that the company will seek valuation multiples of roughly 3.5x revenue. Although many were disappointed by its value, experts believe that a lower valuation would be a smart move that would appeal to institutional and retail investors alike.

Annual Financial Report (FY24)

From INR 5,633 crore in FY23 to INR 6,481 crore in FY24, FirstCry's revenue from operations increased by 15%. In the most recent fiscal year, FirstCry mostly generated income from the sale of its items through its online store and brick-and-mortar locations. The company's wholly-owned subsidiary, GlobalBees, was a major revenue generator, adding INR 1,209 crore.

According to the company's DRHP, there were 1,018 brick-and-mortar outlets nationwide as of the end of the last calendar year (2023). Of these, 632 were franchise-owned, while the remaining 832 were company-owned.

Thanks to a better EBITDA margin, the Pune-based company was able to cut its losses in FY24 by 34%, to INR 321 crore.

Around the first week of August, FirstCry will join Ola Electric as the second SoftBank-backed business to conduct an initial public offering (IPO). The firm, which is headed by Bhavish Aggarwal, had scheduled the opening of the issue for August 2 and its closing for August 6.

So, Who’s Selling in the Initial Public Offering?

SoftBank will sell 37.35 percent of the 5,43,91,592 shares that make up FirstCry's offers for sale (OFS). A number of other investors will also be participating in the OFS, including Mahindra and Mahindra, Premji Invest, TPG Growth, and NewQuest Asia. The firm will probably finalize the price range by today.

Mahindra & Mahindra and Premji Invest are the next two largest shareholders in FirstCry, with 10.97% and 10.36% of the company's shares, respectively. SoftBank is the largest shareholder in FirstCry, holding 25.53% of ownership. Even though the total ESOP pool accounts for 8.4% of the cap table, the creator of the company, Supam Maheshwari, holds a 6% share.

FirstCry Parent Brainbees to Raise Rs 1816 Crore in IPO

Brainbees Solutions, the parent company of FirstCry, has submitted its draft red herring prospectus (DRHP) with plans to raise ₹1,816 crore.

StartupTalkyNadeesh Kareemdathil