Ratan Tata will sell his entire stake in FirstCry: Company preparing for IPO, draft papers filed with SEBI

Brainbees Solutions, the parent company of online retailer FirstCry, has filed draft red herring prospectus (DRHP) documents with market regulator SEBI to launch an initial public offering (IPO). According to the draft papers, under the fresh issue of shares, BrainBiz Solutions will sell new shares worth Rs 1,816 crore ($218 million). Whereas existing investors including SoftBank will sell 54.4 million i.e. 5.44 crore equity shares under Offer-for-Sale (OFS).

Apart from SoftBank, the investors who sold their stake in FirstCry include Mahindra & Mahindra (M&M), Premji Invest (PI) Opportunities Fund, US private equity fund TPG, NewQuest Asia, Apricot Investments, Apricot Investments, Valeant Mauritius Partners, TIMF Holdings, Think India. Opportunities Master Fund and Schroders Capital Private Equity Asia.

SoftBank holds 25.5% stake in FirstCry

FirstCry’s largest shareholder SoftBank holds a 25.5% stake in the firm. Whereas M&M has 10.98% stakes. SoftBank’s unit SVF will sell 2.03 crore shares of Frog Company through IPO. M&M will also sell 0.58% stake or 28 lakh shares in Brainbees Solutions through this issue. Premji Invest will sell 86 lakh shares during the OFS.

Ratan Tata will sell 77,900 shares of FirstCry

Apart from these, Tata Sons Chairman Honorary Ratan Tata and FirstCry co-founder-CEO Supam Maheshwari are among the individuals selling shares in the upcoming IPO. According to FirstCry’s DRHP filed with SEBI, Ratan Tata had initially invested Rs 66 lakh for a 0.02% stake in FirstCry. He is now planning to sell all his 77,900 shares. He had then bought shares of the company at a price of Rs 84.72.

SoftBank had sold shares worth ₹630 crore of FirstCry.

Earlier this month, SoftBank had sold shares worth Rs 630 crore ($310 million) in mother and child care e-commerce platform FirstCry in two rounds of funding. The Japanese group had invested $400 million (₹3,329 crore) in FirstCry at an enterprise valuation of $900 million (₹7,488 crore).

FirstCry will build modern retail stores and warehouses

FirstCry can raise Rs 363.20 crore by issuing shares to some investors through private placement. FirstCry will use the IPO funds to build modern retail stores and warehouses across the country. The value of the company in April was $3 billion i.e. Rs 24,959 crore.