FirstCry’s Parent Company BrainBees Solutions Set for August IPO: What You Need to Know

Introduction

BrainBees Solutions Ltd, the parent company of FirstCry, is gearing up for a significant event as it prepares to likely list on the stock exchanges on August 13. This blog delves into the details surrounding the company’s upcoming Initial Public Offering (IPO), providing insights into its valuation, financial performance, and key investors.

IPO Timeline and Valuation

The much-anticipated BrainBeesIPO is likely to kick off with the launch of the anchor book on August 5, followed by the public subscription window from August 6 to August 8. FirstCry, a leading e-commerce platform for mother and baby care products, is expected to be valued at just under Rs 25,000 crore (approximately $3 billion) through this IPO.

Comparison to Previous Valuations

This valuation marks a slight increase from the company’s previous secondary round, where it commanded a valuation of Rs 23,000 crore (around $2.8 billion). Initially, FirstCry had aimed for a valuation between $3.5 and $3.75 billion, but market conditions have led to a revised, lower estimate.

Historical Context

BrainBees Solutions first filed its draft IPO papers with India’s Securities and Exchange Board of India (SEBI) last December, aiming for one of the largest IPOs in the country for the year. The original filing included a plan to raise $215 million through fresh shares, with an additional $300 million from the sale of existing shares. However, the company withdrew its draft papers after SEBI requested more comprehensive disclosures on key performance indicators (KPIs).

Updated Financials and KPIs

Upon refiling, BrainBees Solutions provided more detailed financial information. As per the latest draft red herring prospectus (DRHP), FirstCry reported a revenue of Rs 4,814 crore over the nine-month period ending on December 31, 2023. During this timeframe, the company also recorded a loss of Rs 278 crore.

Key Investors and Shareholders

Several prominent investors are set to offload their stakes through the offer-for-sale (OFS) component of the IPO. These include SVF Frog (Cayman) Ltd, Mahindra and Mahindra, TPG, PI Opportunities, and Nextgen. The public issue will consist of a primary fundraising of nearly $220 million along with an OFS of 54 million shares, consistent with the amount stated in the draft IPO papers.

SoftBank’s Growing Influence

FirstCry is likely to be the second company from SoftBank’s portfolio to go public in August, following Ola Electric IPO, which is set to debut on Dalal Street on August 9. SoftBank’s continued backing of these new-age companies underscores its strategic focus on the Indian market and its confidence in the growth potential of its portfolio companies.

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.