FirstCry Refile Their IPO DRHP Papers with SEBI

FirstCry is  India’s leading company focused on baby products retailing. The company was started in 2010 and is headquartered in Pune. The company has a network of 1,018 FirstCry and BabyHug stores in 508 cities. Pine Kids, Cutewalk and Babyoye are among its other brands. 

FirstCry sells baby products including clothes, diapers and toys and is aiming to tap this market in the most populous country of the world. The retailer of baby and mother care products has refiled its draft documents for an initial public offering of shares days after the regulator detected a lack of adequate disclosure of key performance indicators in the initial filing.

Why has FirstCry refiled its IPO Papers?

SEBI has told the retail company that it has not complied with the Indian regulations that are mandatory for an IPO bound Company must share all key business metrics that it has shared with the prospective investors in the last three years. This new rule was introduced by the Indian Market Regulator, SEBI in 2022. 

The latest draft red herring prospectus (DRHP) of FirstCry reveals its financial performance for the nine months ended December 2023. During this period, it recorded operating revenue of Rs.4,814 crore but incurred a net loss of Rs 278 crore. The company’s total sales stood at Rs.5,650 crore. Nearly 77% of its total sales have come from online, and the remaining through offline retail stores.

No Changes regarding Issue Details

The refiled Draft Red Herring Prospectus from FirstCry has remained unchanged regarding its issue details. The firm is planning to raise around $218 Million from fresh issue of shares and there would also be a divestment of about 54 Million shares from existing investors. The total IPO size is estimated to be around $500 Million. The Initial Public offer of the soft bank-backed retailer is expected to hit the streets in July.

Conclusion: The previous withdrawal of FirstCry from IPO after regulators’ concern is likely to set an example for other late-stage startups which are yet to file initial papers. Now after refiling its IPO papers, FirstCry is all set to debut in the Indian markets in the upcoming months, The expected $500 million will be the one to look out for this year by investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.