Former Tata Group Chairman Ratan Tata, marking his 86th birthday, is poised to divest his 77,900 shares in the imminent Initial Public Offering (IPO) of FirstCry, a prominent e-commerce platform specializing in children’s products. Tata invested Rs 66 lakh in 2016, securing a 0.02% stake in the company. Joining him in the Offer for Sale (OFS) are significant stakeholders such as Mahindra & Mahindra (M&M), SoftBank, and various other investors, collectively shedding 5.44 crore shares.
Insights into the IPO
Brainbees Solutions, the parent company of FirstCry, is gearing up for its IPO, encompassing the issuance of fresh equity shares valued at Rs 1,816 crore and an OFS. The offering may also incorporate a private placement of shares amounting to Rs 363.20 crore. Specific details about the IPO’s commencement, conclusion dates, or price range remain undisclosed.
Utilization of IPO Proceeds
As outlined in the Draft Red Herring Prospectus (DRHP), the raised funds from the IPO will primarily underwrite the establishment of new retail outlets and warehouses. Furthermore, the allocation is earmarked for international expansion endeavors, notably targeting Saudi Arabia and investments in the subsidiary, FirstCry Trading. Additionally, the IPO’s proceeds will bolster sales, marketing initiatives, technological advancements, data science enhancements, and strategic acquisitions.
Key Stakeholders and Shareholders in the OFS
Apart from Tata and M&M, notable participants in the OFS include SoftBank’s SVF Frog (Cayman) unloading 20.3 million shares, alongside entities like PI Opportunities Fund-1, TPG Growth V SF Markets Pte., NewQuest Asia Investments, and FirstCry co-founder Supam Maheshwari, among others.
The IPO is supervised by Kotak, Morgan Stanley, Bofa Securities, JM Financial, and Avendus, with Link Intime India Private Limited serving as the registrar. Renowned for its expansive array of baby, kids, and mother-care products, FirstCry operates seamlessly across online and physical retail domains.
Conclusion
Ratan Tata’s decision to sell his stake in FirstCry during its IPO reflects a strategic move amidst the company’s growth trajectory. With major stakeholders like M&M, SoftBank, and others also, this marks a significant moment for Brainbees Solutions.
