Renowned business magnate Ratan Tata is set to divest his entire holding of 77,900 shares in the forthcoming initial public offering (IPO) of the e-commerce platform FirstCry. Back in 2016, Tata had acquired a 0.02% stake in Brainbees Solution for ₹66 lakh, the entity behind FirstCry’s omnichannel kidswear business.
As outlined in the draft red herring prospectus (DRHP) submitted by Brainbees Solutions to the Securities and Exchange Board of India (SEBI), the IPO encompasses the issuance of fresh equity shares totaling ₹1,816 crore and an offer for sale by existing shareholders and promoters.
Notable entities such as Mahindra & Mahindra (M&M), private equity firm TPG, NewQuest Asia, and SoftBank, along with Ratan Tata, are collectively planning to offload 5.44 crore shares in Brainbees through an Offer for Sale (OFS) alongside the primary issue.
SoftBank, holding the largest stake at 25.5%, emerges as the principal shareholder in the online e-commerce unicorn. According to the document, Mahindra will divest its 0.58% stake in the parent company, and SoftBank will shed 2.03 crore shares.
The DRHP also discloses the possibility of FirstCry considering a private placement of shares to specific investors for up to ₹363.20 crore. FirstCry, known for offering toys, apparel, and accessories for babies, kids, and mothers both online and in physical stores, has not officially announced the IPO subscription dates in its DRHP. However, media reports suggest that the public issue is slated to open in early 2024. The offer price and IPO price band are yet to be disclosed.
As per the DRHP, the net proceeds from the IPO will be utilized for establishing new retail stores, expanding warehouses, and venturing into international markets. The book-running lead managers for the IPO include Kotak, Morgan Stanley, BofA Securities, JM Financial, and Avendus, with Link Intime India Private Limited serving as the registrar of the offer.
