While the size of the IPO is not yet known, it includes a fresh issue of shares worth up to Rs 1,816 crore. The offer for sale (OFS) part includes offloading of up to 54.4 million shares by existing investors like SoftBank, Mahindra & Mahindra (M&M) US private equity fund TPG.
SoftBank-operated SVG Frog is selling 2.03 crore shares while M&M plans to sell up to 28.06 lakh shares of the company in the IPO.
Other selling shareholders include PI Opportunities Fund, TPG, NewQuest Asia, Apricot Investments, Valiant Mauritius Partners, TIMF Holdings, Think India Opportunities Master Fund and Schroders Capital Private Equity Asia.
SoftBank is FirstCry’s biggest shareholder and holds 25.5% stake in the startup, followed by M&M’s 10.98% stake.
Net proceeds from the IPO would be spent in setting up new modern stores, warehouse, lease payments for existing stores, sales and marketing, technology and data science cost, funding inorganic growth through acquisition and other strategic initiatives.
A part of the proceeds would also be spent for overseas expansion in Saudi Arabia.Book running lead managers to the IPO include Kotak Investment Banking, Morgan Stanley, BofA Securities, JM Financial and Avendus.
In FY23, Firstcry’s consolidated net loss widened to Rs 486.05 crore while consolidated revenue was up over two fold to Rs 5,632.53 crore.
This SoftBank-backed startup has now joined the league of startups having a revenue of over Rs 5,000 crore.
It had reported a net loss of Rs 78.68 crore and its revenue from operations was at Rs 2,401.28 crore for the financial year that ended on March 31, 2022.
SoftBank had invested USD 400 million in FirstCry at an enterprise valuation of USD 900 million.
Earlier this week, sources had said the Japanese conglomerate SoftBank has sold shares worth USD 310 million in omnichannel retailer.