 "FirstCry")
The Securities and Exchange Board of India (Sebi), in an update on Monday, said parent company of FirstCry Brainbees Solutions Limited re-filed documents to the market regulator for fundraising via an initial public offering (IPO).
According to a report in The Economic Times (ET), this action followed the market regulator's instruction to the company to re-file the draft documents due to inadequate disclosure of key performance indicators (KPIs).
According to the latest draft red herring prospectus (DRHP), the size of the company's initial public offering (IPO) remains unchanged. The proposed IPO comprises a fresh issue of equity shares totaling Rs 1,816 crore and an offer for sale (OFS) of up to 5.44 crore equity shares by existing shareholders.
Launched in 2010, FirstCry sells a wide range of products for babies, kids and mothers through online and physical stores. It has raised about $425 million to date, and it became a unicorn in 2020 when SoftBank invested around $300 million.
Last week, it was reported that Supam Maheshwari, founder and chief executive officer (CEO) of FirstCry, witnessed a 49 per cent decrease in his monthly remuneration, amounting to Rs 8.6 crore in the first three quarters of FY24, as compared to Rs 16.7 crore in the preceding year.
According to the revised DRHP submitted to the Sebi, his overall earnings amounted to Rs 77.5 crore during the first three quarters of FY24, in comparison to Rs 200.7 crore for the entirety of FY23. In the ten days leading up to the filing for an IPO in December last year, Maheshwari sold 6.2 million shares in the company.
As part of the OFS, SVF Frog, a Cayman Islands-registered entity owned by Softbank, plans to divest 2.03 crore equity shares of Brainbees Solutions Ltd, while automaker Mahindra & Mahindra intends to sell 28.06 lakh shares of the company. According to the draft papers, Softbank possesses a 25.55 per cent stake in Brainbees Solutions, while M&M holds a 10.98 per cent stake in the retailing platform, the report stated.
In addition to Softbank and M&M, the other entities selling shares in the offer for sale (OFS) include PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, Valiant Mauritius, TIMF Holdings, Think India Opportunities Fund, and Schroders Capital.
