New Delhi, Aug 1 (PTI) – Brainbees Solutions Ltd, the parent company of the online e-commerce platform FirstCry, has set the price band for its Rs 4,194 crore Initial Public Offering (IPO) at Rs 440-465 per share. The IPO will open for public subscription from August 6 to August 8, with the anchor portion bidding available on August 5, according to the company’s announcement.
The Pune-based Brainbees Solutions’ public issue includes a fresh equity share issue valued at Rs 1,666 crore and an Offer For Sale (OFS) of up to 5.44 crore shares worth Rs 2,528 crore from existing shareholders, bringing the total issue size to Rs 4,194 crore.
In the OFS, SVF Frog, a Cayman Islands-registered entity of Softbank, will sell 2.03 crore equity shares, while automaker Mahindra & Mahindra (M&M) will offload 28.06 lakh shares. Currently, Softbank holds a 25.55% stake in Brainbees Solutions, and M&M owns a 10.98% stake.
Other stakeholders participating in the OFS include PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, Schroders Capital, and veteran industrialist Ratan Tata.
The proceeds from the fresh issue will be used for setting up new modern stores under the ‘BabyHug’ brand, investing in the subsidiary, expanding overseas, and enhancing sales and marketing initiatives. A portion of the funds will also be allocated for general corporate purposes.
Brokerage houses estimate that the company’s market capitalization will reach Rs 24,142 crore post-issue.
Launched in 2010, FirstCry is India’s largest multi-channel, multi-brand retailing platform for products catering to mothers, babies, and kids. The platform aims to be a one-stop destination for parenting needs, encompassing commerce, content, community engagement, and education, with a strong focus on brand affinity, loyalty, and customer trust.
FirstCry expanded internationally, establishing a presence in the United Arab Emirates (UAE) in 2019 and the Kingdom of Saudi Arabia (KSA) in 2022.
The company has reserved 75% of the issue size for qualified institutional buyers, 35% for non-institutional investors, and 10% for retail investors. Investors can bid for a minimum of 32 equity shares and in multiples thereafter.
The book-running lead managers for the issue are Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Private Ltd, BofA Securities India Ltd, JM Financial Ltd, and Avendus Capital Private Ltd.