Brainbees (FirstCry Parent) IPO in Sight: Key Investors List Shares for Sale

29 Dec 2023 , 11:50 AM

Ratan Tata, who initially injected Rs 66 lakh for a 0.02% stake in FirstCry, is slated to divest all 77,900 shares at an average share cost of Rs 84.72, as outlined in the draft red herring prospectus submitted to SEBI on Thursday. Brainbees, the parent entity of the online retail platform, plans to issue new shares totaling Rs 1,816 crore, while existing stakeholders will release 54.39 million shares through an Offer for Sale (OFS), according to the DRHP.

Noteworthy participants in the OFS include SoftBank’s SVF Frog (Cayman) divesting 20.3 million shares, Mahindra & Mahindra with 2.8 million shares, PI Opportunities Fund-1 with 8.6 million shares, TPG Growth V SF Markets Pte. with 3.9 million shares, and NewQuest Asia Investments with 3 million shares. Additional sellers encompass Apricot Investments (2.5 million shares), Valiant Mauritius Partners (2.4 million shares), TIMF Holdings (Mauritius) with 8.37 million shares, Think India Opportunities (8.37 million shares), and Schroders Capital with 6.16 million shares. Co-founder Supam Maheshwari is also among individual shareholders partaking in the share disposal.

The deployment of IPO proceeds by FirstCry is planned as follows:

1. Expenditure for:
   • Establishing new stores and warehouses
   • Lease payments for identified existing stores in India
2. Investment in subsidiary, FirstCry Trading, for global expansion by:
   • Establishing new warehouses and stores in Saudi Arabia
3. Investment in Globalbees Brands to acquire an additional stake in indirect subsidiaries.
4. Initiatives in sales and marketing
5. Covering technology and data science costs, including expenses related to cloud and server hosting.
6. Funding inorganic growth through acquisitions and strategic initiatives, as well as general corporate purposes.