SoftBank is set to offload the highest number of shares in Pune-based omnichannel marketplace FirstCry’s initial public offering (IPO). According to the draft red herring prospectus (DRHP), the Japanese investment giant intends to sell up to 2 crore shares as part of the offer for sales (OFS) component of the public issue.
SoftBank’s SVF Frog (Cayman) Ltd possesses more than 12.4 crore shares, representing a 25% stake in the company.
The unicorn’s initial public offering (IPO) includes new issuances of shares totaling INR 1,816 crore and an offer for sale (OFS) component of up to 5.4 crore equity shares.
In addition to SoftBank, various entities, including Mahindra & Mahindra, Premji Invest, private equity investor TPG, Apricot Investments, and NewQuest, are divesting their stakes in the IPO.
Mahindra & Mahindra, with a holding of more than 4 crore shares in FirstCry, constituting almost an 11% stake, intends to divest over 28 lakh shares in the offer for sale (OFS). In contrast, Premji Invest, holding over 2 crore shares in the startup, plans to offload 86 lakh shares.
TPG Growth holds nearly 2 crore shares in FirstCry and aims to divest approximately 39 lakh shares in the IPO. Concurrently, TPG’s NewQuest Asia Investments III Limited will offload over 30 lakh shares in the FirstCry IPO.
As an individual shareholder in the startup, Ratan Tata is selling 77,900 shares as part of the IPO.
FirstCry’s co-founder and CEO Supam Maheshwari, possessing more than 2.8 crore shares in the company, will also divest 18.2 lakh shares in the IPO. The other co-founder, Amitava Saha, is selling over 13 lakh shares.
Established in 2010 by Maheshwari and Saha, FirstCry is an omnichannel marketplace catering to baby and kids products. The unicorn aims to utilize the funds generated from the IPO to establish new contemporary stores and warehouses, invest in its subsidiary Globalbees Brands, and cover various growth-related expenses, including acquisitions.
In the fiscal year 2023, FirstCry experienced a substantial increase in net loss, soaring over 500% to INR 486 crore from INR 78.6 crore in the preceding fiscal year. It is noteworthy that the startup had achieved a net profit of INR 215.9 crore and sales revenue of INR 1,602.8 crore in FY21. During FY23, the startup recorded sales amounting to INR 5,632.5 crore, reflecting a remarkable 135% surge from INR 2,401.2 crore in FY22.
Continue Exploring: IPO-bound FirstCry faces soaring losses, reporting over 500% surge to INR 486 Crores in FY23