Indian retailer FirstCry is seeking to raise up to $501 million in an initial public offering (IPO), valuing the company as much as $2.9 billion, according to a term sheet seen by Reuters on Thursday.
FirstCry, which sells baby products including clothes, diapers and toys and competes with online kids' store Hopscotch, and in some segments with domestic firms Shoppers Stop and Flipkart-owned Myntra, is seeking to tap the market for new parents in the world's most populous country.
The company is offering fresh shares worth $199 million, while existing investors, including SoftBank, TPG and India's Mahindra and Mahindra, will sell a combined stake worth $302 million, the term sheet showed.
FirstCry is offering a 17% stake to public shareholders and has set a price band between 440 rupees and 465 rupees per share, according to the term sheet.
It said it will use the proceeds from the offering to fund acquisitions, international expansion and set up new stores and warehouses in India.
FirstCry did not immediately respond to a Reuters' request for comment.
The book running lead managers are BofA Securities India, Morgan Stanley India, Kotak Mahindra Capital, JM Financial and Avendus Capital.
A stock market boom has resulted in over 150 Indian companies raising nearly $5 billion through public listings in the country between January and July, nearly double the amount raised for the same period last year, according to LSEG data.
Indian e-scooter maker Ola Electric earlier this week said it aims to raise $734 million in the country's biggest IPO this year.
