BrainBees Solutions Limited, the parent company of FirstCry, has successfully raised approximately $227 million (Rs 1,886 crore) from 71 anchor investors in preparation for its initial public offering (IPO). This significant investment is seen as a strong vote of confidence in the company’s future prospects.
The board of FirstCry passed a resolution to offer 4,05,55,428 equity shares at an issue price of Rs 465 each, which is the upper band of their price range, to its anchor investors. According to data from the Bombay Stock Exchange, prominent investors such as SBI, Fidelity, Goldman Sachs, ICICI, HDFC, Kotak, Bajaj Allianz, Steadview, Morgan Stanley, and Max Life are key participants in this anchor investment round.
FirstCry’s public offering will commence from August 6 to August 8, with a price band set between Rs 440-465. The minimum bid quantity is 32 shares.
Prior to the anchor investment round, SoftBank was the largest shareholder in FirstCry with a 25.53% stake. Mahindra & Mahindra and Premji Invest followed with stakes of 10.97% and 10.36% respectively. The company’s founder, Supam Maheshwari, holds 6% of the firm, while the entire ESOP pool constitutes 8.4% of the cap table.
FirstCry has shown commendable progress over the last fiscal year. The company’s operating revenue increased by 15% to Rs 6,481 crore, while its losses reduced by 34% to Rs 321 crore in FY24. The company’s EBITDA margin also saw improvement during this period.
According to the company’s Draft Red Herring Prospectus (DRHP), FirstCry operated 1,018 offline stores across the country by the end of the last calendar year (2023). Of these, 632 were franchise-owned, while the remaining stores were owned by the company.