Brainbees Solutions Ltd, the parent company of baby products retailer FirstCry, has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of shares.
The size of the proposed IPO, however, has remained unchanged. FirstCry will issue fresh shares worth Rs 1,816 crore ($218 million) in the IPO, which will also have an offer for sale for 54.4 million shares by existing shareholders.
The company had withdrawn its first DRHP a few weeks earlier due to SEBI’s observation that it had not complied with regulations that mandate an IPO-bound company to share all those key business metrics that it has shared with prospective investors in the last three years, according to a Reuters report.
The firm had initially filed its DRHP in December 2023.
Japanese tech investor SoftBank, US private equity firm TPG, PremjiInvest, the private investment arm of Wipro’s Azim Premji, are among the shareholders that are divesting their stake as part of the OFS.
Softbank is looking to sell 20.32 million shares, or a sixth of its total stake. Notably, Softbank is also FirstCry's biggest shareholder with a 25.53% stake, or about 124.1 million shares, in the company.
TPG intends to divest about 3.9 million shares via the IPO and PremjiInvest 8.6 million shares. Indian conglomerate Mahindra & Mahindra, Schroders Capital Private Equity, and four other investors are also selling FirstCry shares.
Founded in 2010 by Suparn Maheshwari and Amitava Saha, FirstCry is one of the largest online and offline retailers of baby and kids’ products in the country.
The company offers kid products across categories that include diapers, feeding and nursing, skin and health care, toys, clothes, footwear, and fashion accessories.
FirstCry joined the coveted unicorn club in February 2020, after it raised $300 million from SoftBank Group, through its Vision Fund.
Kotak Mahindra Capital, Morgan Stanley, BoFA Securities, JM Financila, and Avendus are the book running lead managers to the issue.
As of March 2023, the company had 8.8 million annual transacting customers, according to the draft papers.
The firm disclosed that it had an average order value of Rs 2,554 as of December 31, 2023, with a gross merchandise value of Rs 6,825 crore.
Total revenue from operations as of December 31 was Rs 4,814 crore, with the total loss at Rs 278 crore.
Close to 77% of its total revenue came through online channels, with the remaining 23% coming offline, according to the draft papers. It has a total of 1,018 stores in India.
