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FirstCry Parent Brainbees Solutions Gets SEBI Nod for INR 1,816 Cr IPO The initial public offering consists of a new issue of equity shares up to INR 1,816 crore and an offer to sell up to 54.39 million equity shares.

By Paromita Gupta

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Supam Maheshwari, Co-founder & CEO of FirstCry

Brainbees Solutions Limited, the parent company for kids-focused omnichannel retailer FirstCry, has received final approval from the Security Exchange Board of India (SEBI) for its initial public offering (IPOs).

In December of last year, FirstCry submitted its draft red herring prospectus (DRHP) for the first time. However, in response to regulator orders, the company was forced to resubmit the draft IPO documents in April of this year. Since FirstCry only gave investors financial information until the first quarter of the 2024 fiscal year, SEBI had expressed concerns about important indicators that the company had revealed.

According to a statement from the company, the initial public offering consists of a new issue of equity shares up to INR 1,816 crore and an offer to sell up to 54.39 million equity shares.

SVF Frog (Cayman) Ltd will dump up to 20.32 million shares under the offer for sale, PI Opportunities Fund-1 will offload up to 8.6 million shares, Mahindra & Mahindra Limited will offload up to 2.8 million shares, and TPG Growth V SF Markets Pte Ltd will offload up to 3.9 million shares.

Several other shareholders, including NewQuest Asia Investments, Apricot Investments, and more, are also selling significant shares of Brainbees Solutions Limited.

The company intends to utilise the money raised from the initial public offering (IPO) to build a warehouse, finance the opening of new BabyHug stores, and pay the leases on the modern stores it now owns and operates in India.

Additionally, it plans to invest in Digital Age, a subsidiary, in order to open new outlets under the FirstCry brand.

In order to grow internationally, particularly by opening stores and warehouses in Saudi Arabia, Brainbees will also invest in its subsidiary FirstCry Trading. Additionally, it plans to use the proceeds for general company purposes and to invest in its subsidiary Globalbees Brands in order to acquire additional stakes in step-down subsidiaries and acquisitions.

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, BofA Securities India Limited, JM Financial Limited, and Avendus Capital Private Limited are the issue's book-running lead managers.

Paromita Gupta

Entrepreneur Staff

Features Writer with Entrepreneur India

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at paromita@entrepreneurindia.com. 
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