FirstCry's Second Attempt To File IPO Papers

Brainbees Solutions, the parent company of FirstCry, an online ecommerce platform, has resubmitted preliminary papers to the markets regulator Sebi (Securities and Exchange Board of India) for an initial public offering (IPO). This follows a directive from the regulator to re-file the papers due to insufficient disclosure of key performance indicators (KPIs).

The company's KPIs include its number of orders, average order value and annual transacting customers.

The updated draft red herring prospectus (DRHP) indicates that the size of the IPO remains unchanged. It consists of a fresh issue of equity shares totaling up to Rs 1,816 crore and an Offer For Sale (OFS) of up to 5.44 crore equity shares by existing shareholders.

For the nine months ended December 2023, the company reported a net loss of Rs 278 crore and operating revenue of Rs 4,814 crore. The company's sales were comprised of 77 per cent from online channels and 23 per cent from offline stores.

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

As per the draft papers, Softbank currently holds a 25.55 per cent stake in Brainbees Solutions, and M&M owns a 10.98 per cent stake in the company.

In addition to Softbank and M&M, other entities participating in the OFS include PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, Valiant Mauritius, TIMF Holdings, Think India Opportunities Fund and Schroders Capital.