Supam Maheshwari, the co-founder and CEO of FirstCry, an e-commerce platform specializing in mother and child care, has reportedly sold 6.2 million shares ahead of the company’s upcoming initial public offering (IPO).
As per a report from MoneyControl, Maheshwari’s divested shares are estimated to be worth more than INR 300 crore.
According to the Draft Red-Herring Prospectus (DRHP) of the company, the CEO of FirstCry has included himself as a selling shareholder in the public offering.
Continue Exploring: IPO-bound FirstCry files DRHP, targets INR 1,816 Crore fundraising in fresh issue
His ownership stake in the company was initially 7.46 percent, but following the submission of the draft IPO papers, his shareholding decreased to 5.95 percent.
As indicated in the DRHP, Maheshwari divested 9.34 million shares in the six months leading up to the filing date of the IPO papers.
“At the price of INR 487.44 apiece, this share transfer would be worth over INR 455 crore,” said the report. FirstCry was yet to respond to the report.
Earlier reports suggest that SoftBank, the Japanese investment giant, has divested shares totaling $310 million in FirstCry through two separate rounds.
Late last month, FirstCry submitted its Draft Red-Herring Prospectus (DRHP) to SEBI, the market regulator, with a plan to raise INR 1,816 crore through a fresh issuance of shares.
The parent company of FirstCry, BrainBees Solutions, submitted the Draft Red-Herring Prospectus (DRHP), which incorporates an offer-for-sale (OFS) involving 5.4 crore equity shares.
The IPO funds raised by FirstCry will be employed to establish modern retail stores and warehouses across the country.
FirstCry’s Financial Performance in FY23
Meanwhile, the company recorded INR 5,632 crore in revenue from operations in FY23, with its losses increasing over sixfold from INR 79 crore in FY22 to INR 486 crore.
