After postponing its initial public offering (IPO) last year amidst volatile market conditions, omnichannel retailer FirstCry is reportedly preparing to submit its draft IPO papers in the coming days, according to insiders. The company’s objective is to secure funding in the range of $500-600 million through its upcoming public offering.
Although the valuation has yet to be officially determined, insiders familiar with the ongoing discussions suggest that it could be estimated at approximately $4 billion for the IPO.
“The draft red herring prospectus (DRHP) is likely to be filed with the markets regulator Sebi before December 29. The listing is expected to be post the general elections..,” said a person familiar with the matter who spoke on the condition of anonymity.
Following Nykaa‘s IPO in 2021, FirstCry is set to become the second Indian vertical ecommerce platform to go public. Headquartered in Pune, the company specializes in offering a range of products for children and mothers through both online and offline channels.
Ahead of its initial public offering (IPO) in August, three family investment offices associated with India Inc acquired stakes in FirstCry, totaling approximately INR 435 crore. The MEMG Family Office of Ranjan Pai (Manipal Group), Sharrp Ventures of Harsh Mariwala (Marico), and the DSP family office of Hemendra Kothari participated in the investment, primarily acquiring stakes from the company’s largest investor, SoftBank.
FirstCry is required to maintain its foreign shareholding below 51%, adhering to the ecommerce Foreign Direct Investment (FDI) regulations in the country. Notably, SoftBank is actively seeking to reduce its stake to below 26% to avoid being categorized as a promoter of the company.
Sources familiar with the matter revealed that Ola Electric, another company within Masayoshi Son’s SoftBank Corp portfolio, is set to submit its Draft Red Herring Prospectus (DRHP) in the upcoming days.