FirstCry-parent Brainbees Solutions files DRHP with Sebi; M&M, Ratan Tata to offload shares

Brainbees Solutions Ltd, the parent company of FirstCry.com, has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO). Firstcry is India’s largest multichannel retailing platform for mothers, babies and kid products.

According to DRHP,  the initial public offering (IPO) comprises a fresh issue of equity shares aggregating up to Rs 1,816 crore and an offer-for-sale (OFS)of up to 5,43,91,592 Equity shares by corporate selling shareholders of the company.

SVF Frog (Cayman), Mahindra & Mahindra, Ratan Tata, PI Opportunities Fund-I, TPG Growth V SF Markets, NewQuest Asia Investments III, Apricot Investments, Valiant Mauritius Partners FDI, TIMF Holdings (Mauritius), Think India Opportunities Master Fund LP (Cayman) Schroders Capital Private Equity Asia Mauritius II

The net proceeds from the issue shall be utilized towards funding the expenditure for setting up new modern stores, a warehouse and lease payments for our existing modern stores in India, funding the investment in its subsidiary, FirstCry Trading for overseas expansion in the Kingdom of Saudi Arabia, funding of inorganic growth and other strategic initiatives.

The FirstCry platform was launched in India in 2010 addressing parenting needs across commerce, content, community engagement, and education. The company offers products in various categories, including apparel, footwear, baby gear, nursery, diapers, toys and personal care, amongst others.

FirstCry’s online platform accessible through the mobile application and website, FirstCry modern stores comprising franchisee-owned, franchisee-operated stores, company-owned and company-operated modern stores as well as general trade retail distribution.

As at June 30, 2023, they offer more than one million SKUs from over 6,800 brands, including prominent third-party Indian brands, global brands, and their own home brands. The FirstCry mobile application has been downloaded more than 104 million times in India.

They have a network of 936 FirstCry and BabyHug modern stores in 465 cities in 27 states and four union territories across India with over 1.76 million square feet of retail space as of the period ended on June 30, 2023.

The company has reserved 75 per cent of equity shares for the qualified institutional bidders, while non-institutional investors will get 15 per cent of the allocation in the IPO. Remaining 10 per cent of the equity shares shall be reserved for the retail investors of the issue.

Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, JM Financial and Avendus Capital are the Book Running Lead Managers to the issue. Shares of the company shall be listed on both BSE and NSE.
 

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