FirstCry refiles IPO papers with SEBI

30 Apr 2024 , 12:11 PM

FirstCry has resubmitted its draft IPO papers to the Securities and Exchange Board of India (SEBI), incorporating updated financial metrics. The startup initially filed its draft red herring prospectus (DRHP) in December 2023, but SEBI returned the papers seeking further clarity.

Despite maintaining the IPO size at $500 million, FirstCry disclosed a revenue of ₹4,814 Crore for the nine months ending December 31, 2023. However, the company incurred a loss of ₹278 Crore during the same period, as per the revised DRHP.

Following a month-long engagement between SEBI and FirstCry, the regulator sent back the company’s filings last week, seeking additional clarity. Initially, SEBI requested 25 key performance indicators (KPIs), but FirstCry provided only 5-6 in its initial submissions. These KPIs include average order value, annual transacting customers, and number of orders. SEBI also requested an updated set of financials.

Although year-on-year (YoY) comparison data for the same period is unavailable, FirstCry reported an operating revenue of ₹5,633 Crore in FY23, with a loss of ₹486 Crore. In FY22, the company recorded an operating revenue of ₹2,401 Crore, with a loss of ₹79 Crore. According to the DRHP, over 75% of the company’s sales were generated through online channels.

In a recent secondary transaction round, FirstCry secured a valuation of ₹23,000 Crore (approximately $2.8 Billion). However, it is anticipated that the company will price its IPO at a valuation ranging between $3.5-3.75 Billion.