FirstCry Re-Files IPO Papers, Issue Size Remains Unchanged; Details

FirstCry IPO: BrainBiz Solutions Ltd., the parent company of online e-commerce platform FirstCry, has re-filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), according to an update from the markets regulator on Monday. The regulator had earlier directed the company to re-file the draft papers citing inadequate disclosure of key performance indicators (KPIs), market sources said.

The company's key performance indicators include its number of orders, average order value, and annual transacting customers. According to the latest draft red herring prospectus (DRHP), the size of the Pune-based company's IPO remains unchanged. Its proposed IPO is a combination of a fresh issue of equity shares worth up to Rs 1,816 crore and an offer for sale (OFS) of up to 5.44 crore equity shares by existing shareholders.

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For the nine months ended December 2023, the company reported a net loss of Rs 278 crore and operating revenue of Rs 4,814 crore. According to the latest draft paper, about 77 percent of the company's total sales came through online channels and the remaining 23 percent through offline stores.

Under the OFS, SoftBank's Cayman Islands-registered unit SVF Frog will sell 2.03 crore equity shares of Brainbees Solutions Ltd., and 28.06 lakh shares of automaker Mahindra & Mahindra (M&M) Co.

Currently, SoftBank holds a 25.55 percent stake in BrainBiz Solutions, while M&M holds a 10.98 percent stake in the multi-brand retailing platform, the draft papers show. Apart from SoftBank and M&M, other selling shareholders in the OFS are PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, Valeant Mauritius, TIMF Holdings, Think India Opportunities Fund, and Schroders Capital.

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