Brainbees Solutions Pvt Ltd, the parent company on childcare startup FirstCry, has filed its initial public offering (IPO) papers. The exchange filings said that investor Mahindra & Mahindra will be divesting a chunk of their stake in the firm.
FirstCry IPO’s paperwork said that Mahindra and Mahindra will be selling off 0.58 percent stake in the company, which is roughly 28.06 lakh shares with a face value of ₹2 each.
These shares of the company are being sold by Mahindra for the Offer For Share (OFS) part of the IPO, the filings state. The total number of shares being sold by M&M make up 0.58% of the existing issued and paid-up equity share capital of Brainbees.
The draft IPO paperwork was filed by FirstCry’s parent company on Thursday with the Securities and Exchanges Board of India (SEBI). Till now, the price band of the shares has not been decided by Brainbees.
It is likely that the IPO for FirstCry will be launched in the early months of 2024, soon after the results of the Lok Sabha elections are declared, as it is expected to cause a boom in the market.
Further, Mahindra and Mahindra said that the actual number of shares being sold for OFS will be determined at the end of the Book Building Procees by Brainbees and the Book Running Lead Managers.
Ahead of the IPO, family offices also bought shares of FirstCry, boosting the performance of the company.
Family offices of Indian cricketer Sachin Tendulkar, Ravi Modi of ethnic wear brand Manyavar, Infosys co-founder Kris Gopalakrishnan, and TVS group family are among the buyers who have purchased equity shares of the company, reported the Economic Times citing sources.
FirstCry IPO in 2024: Financial performance
Ahead of filing the paperwork with SEBI, FirstCry parent firm Brainbees reported its financial performance for the year 2023 to the website of Corporate Affiars Ministry.
The financial filings showed that Brainbees reported a total loss before tax of ₹585 crore, while the total ESOPS costs stood at ₹361 crore. The company also reported a business growth of 133 percent.
It is likely that FirstCry will list its IPO to raise over $500 million, with the segment divided between OFS and fresh issue. The date and price band of the IPO has not been fixed by the company yet.
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