Indian retailer FirstCry is gearing up for a significant milestone with its upcoming initial public offering (IPO). The company plans to raise up to $501 million, valuing itself at approximately $2.9 billion. This ambitious move marks a major step for FirstCry, which specializes in baby products like clothes, diapers, and toys.
Competing with online stores like Hopscotch and giants such as Shoppers Stop and Flipkart-owned Myntra, FirstCry aims to tap into the burgeoning market for new parents in India, the world’s most populous country.
Details of the IPO
| Details | Information |
|---|---|
| Valuation Target | $2.9 billion |
| Amount to be Raised | Up to $501 million |
| Fresh Issue of Equity Shares | Rs 1,666 crore ($199 million) |
| Offer for Sale (OFS) | Up to 54.3 million shares |
| Notable Stakeholders | SoftBank (post-IPO: ~20%), Mahindra & Mahindra (post-IPO: 9.5%-10%), Schroders Capital (exiting) |
| Price Band per Share | 440 to 465 rupees |
| IPO Timeline | Opens: August 6, 2024; Closes: August 8, 2024; Anchor Round: August 5, 2024 |
The IPO includes a fresh issue of equity shares worth Rs 1,666 crore ($199 million) and an offer for sale (OFS) of up to 54.3 million shares by existing shareholders, including investors like SoftBank, TPG, and Mahindra & Mahindra. Post-IPO, SoftBank’s stake will reduce to around 20%, while Mahindra & Mahindra’s will be between 9.5% and 10%. Schroders Capital will be fully exiting the company through this offering.
The price band for the shares is set between 440 and 465 rupees each, with the upper end of the price band implying a valuation of Rs 24,142 crore, or roughly $2.9 billion.
The IPO will open on August 6, 2024, and close on August 8, 2024, with an anchor investor round starting on August 5, 2024.
Click here to know the latest news of this IPO.
Use of IPO Proceeds and Market Impact
FirstCry plans to use the proceeds from the IPO to expand its digital presence, set up new stores, and venture into international markets, including Saudi Arabia. The company is also looking to fund acquisitions and develop new warehouses in India to bolster its supply chain.
This IPO comes at a time when the Indian stock market is experiencing a boom, with over 150 companies raising nearly $5 billion through public listings from January to July 2024. Also, Indian e-scooter maker Ola Electric also aims to raise $734 million, marking the largest IPO in India this year.
The lead managers for FirstCry’s IPO include BofA Securities India, Morgan Stanley India, Kotak Mahindra Capital, JM Financial, and Avendus Capital.
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People May Ask
What is the valuation target for FirstCry’s IPO?
FirstCry is targeting a valuation of up to $2.9 billion in its IPO.
How much is FirstCry aiming to raise through the IPO?
FirstCry aims to raise up to $501 million through the IPO.
Who are the major existing investors selling their shares?
The major investors selling their shares include SoftBank, TPG, and Mahindra and Mahindra.
What will the proceeds from the IPO be used for?
The funds will be used for acquisitions, international expansion, and setting up new stores and warehouses in India.
Who are the book running lead managers for the IPO?
The lead managers are BofA Securities India, Morgan Stanley India, Kotak Mahindra Capital, JM Financial, and Avendus Capital.
How has the Indian stock market performed this year regarding IPOs?
The Indian stock market has seen a boom, with over 150 companies raising nearly $5 billion through IPOs between January and July, almost double the amount from the same period last year.
