FirstCry's parent Brainbees Solutions sets Rs 440-465 per share price band for Rs 4,194-cr IPO

Online e-commerce platform FirstCry's parent, Brainbees Solutions Ltd on Thursday fixed a price band of Rs 440-465 a share for its Rs 4,194 crore Initial Public Offering (IPO).

The initial share sale will open for public subscription on August 6 and close on August 8 and the bidding for the anchor portion will open for a day on August 5, the company announced.

The public issue of Pune-based Brainbees Solutions consists of a fresh issue of equity shares valued at Rs 1,666 crore and an OFS (Offer For Sale) component of up to 5.44 crore shares worth Rs 2,528 crore by existing shareholders. This takes the total issue size to Rs 4,194 crore.

Under the OFS, SVF Frog, a Cayman Islands-registered entity of Softbank, will sell 2.03 crore equity shares of Brainbees Solutions Ltd, and automaker Mahindra & Mahindra (M&M) will offload 28.06 lakh shares of the company.

Currently, Softbank holds a 25.55 per cent stake in Brainbees Solutions, and M&M owns a 10.98 per cent stake in the multi-brand retailing platform.

Apart from Softbank and M&M, other selling shares in the OFS are PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, and Schroders Capital. Further, individuals selling shareholders include veteran industrialist Ratan Tata.

The company will use net proceeds from the fresh issue for setting up new modern stores under the brand 'BabyHug', investment in the subsidiary, overseas expansion, as well as sales and marketing initiatives, besides, a portion will be used for corporate general purposes.

Brokerage houses have pegged the company's market capitalisation to Rs 24,142 crore post-issue.

Launched in 2010, FirstCry is India's largest multi-channel, multi-brand retailing platform for mothers', babies' and kids' products. It was set up with the aim of creating a one-stop destination for parenting needs across commerce, content, community engagement, and education, based on brand affinity, loyalty and trust of customers.

Further, FirstCry expanded internationally in select markets, establishing a presence in the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) in 2019 and 2022, respectively.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers, 35 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Investors can bid for a minimum of 32 equity shares and in multiples thereof.

Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Private Ltd, BofA Securities India Ltd, JM Financial Ltd and Avendus Capital Private Ltd are the book running lead managers to the issue.