Ratan Tata, the business tycoon, will sell all 77,900 shares in the impending initial public offering (IPO) of e-commerce platform FirstCry. Tata purchased a 0.02 percent stake in Brainbees Solution for 66 lakh in 2016, which conducts omnichannel kidswear companies under the brand name FirstCry.
According to the draft red herring prospectus (DRHP) filed by Brainbees Solutions, FirstCry's parent company, to capital markets regulator Securities and Exchange Board of India (SEBI), the IPO will include the issuance of new equity shares worth Rs.1.816 crore, as well as an offer for sale by existing shareholders and promoters.
Existing investors, including Mahindra & Mahindra (M&M), TPG, NewQuest Asia, and SoftBank, aim to offer 5.44 crore shares in Brainbees through an Offer for Sale (OFS) in addition to the principal issuance.
SoftBank owns 25.5 percent of FirstCry, making it the primary shareholder in the online e-commerce unicorn. Mahindra will sell its 0.58 percent interest in the parent firm, while SoftBank will sell 2.03 crore shares.
FirstCry may also contemplate a private issue of shares to certain investors for up to 363.20 crore, according to the DRHP. FirstCry sells toys, clothing, and accessories for babies, children, and moms in both online and physical stores.
The company has not yet declared the Initial Public Offering subscription opening and closing dates in their DRHP, but various media reports say that the public issue will begin in early 2024. The issue's offer price and IPO price band have still yet to be declared.
According to the DRHP, net proceeds will be used to open new retail locations, warehouses, and expand internationally. The book-running lead managers are Kotak, Morgan Stanley, Bofa Securities, JM Financial, and Avendus, while the registrant is Link Intime India Private Limited.
