FirstCry to launch IPO at around $2.9 billion valuation

Back in May this year, FirstCry had re-filed preliminary papers with SEBI to raise funds through IPO.

The initial public offer (IPO) of FirstCry, which is expected to open for subscription next week, could see the upper end of the price band fixed around Rs 465, which would value the company at nearly $2.9 billion, sources close to the development told Moneycontrol.
The public issue of the baby and mother care products retailer is likely to comprise of a primary fundraising of nearly $220 million along with an offer-for-sale (OFS) component of 54 million shares – in-line with the amount stated in its draft IPO papers.
BrainBees, the parent entity of FirstCry, had first filed its IPO document in December last year but withdrew it later as the capital market regulator Securities and Exchange Board of India (Sebi) sought further details in terms of disclosures and financials. The company has already refiled the IPO draft document with the regulator.
The start-up, which is backed by Premji Invest, Mahindra, and SoftBank among other entities, was valued at $2.8 billion in its last private funding round. Currently, SoftBank holds a 25.55 percent stake in FirstCry, while BrainBees Solutions and Mahindra own a 10.98 percent stake.
SVF Frog (Cayman) Ltd, Mahindra and Mahindra, TPG, PI Opportunities, and Nextgen are among the investors offloading their stakes through the OFS.
“FirstCry will launch its IPO soon in one-two days and aims to complete the process by first half of August. The upper limit of the price band is likely to be set at around Rs 465, valuing the company at Rs 24,300 crore,” a source told Moneycontrol.
According to the draft red herring prospectus, FirstCry reported a revenue of Rs 4,814 crore for the nine months ending December 31, 2023, while incurring a loss of Rs 278 crore during the same period. Approximately 77 percent of the company's total sales came through online channels, with the remaining 23 percent through offline stores.

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