Business & Policy | Industry Updates

FirstCry Plans Big IPO to Raise Funds for Expansion and Investments

Published: January 15, 2024
Author: Fashion Value Chain

FirstCry, a company focusing on kids’ products in India, is gearing up for its Initial Public Offering (IPO). They’re aiming to raise money through the sale of new shares worth INR 1,816 crore, along with existing shares. The parent company, Brainbees Solutions Limited, has submitted documents to SEBI for this purpose.

SoftBank, one of the major investors in FirstCry, plans to sell a significant portion of their shares as part of this IPO. Other stakeholders like Mahindra & Mahindra, Premji Invest, TPG, Apricot Investments, and NewQuest are also looking to sell some of their stakes in the offering.

The company is thinking about selling shares to private investors before the IPO to raise around Rs 363 crore. This money will be subtracted from the new shares offered during the IPO.

FirstCry intends to use the funds from the IPO mainly for expanding their stores and warehouses, especially overseas in places like Saudi Arabia. They also plan to invest in technology, marketing, and data science.

Despite showing a significant increase in sales over the years, FirstCry reported a considerable net loss in FY23. However, in FY21, they recorded a net profit. Their latest financials for the first quarter of FY24 also show a net loss despite substantial sales.

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