Diving into the Ins and Outs of the FirstCry IPO, Opens up on August 6

FirstCry is seeking a valuation that's about 3.5 times its revenue, which topped Rs 6,500 crore in the fiscal year 2024

BrainBees Solutions Ltd, the parent company of FirstCry, is gearing up for its initial public offering (IPO) set to start on August 6 and wrap up by August 8. 

The company aims to be valued between $2.9 billion and $3 billion in this public listing. In its updated prospectus, FirstCry plans to issue new shares worth up to Rs 1,666 crore and offer up to 54.4 million shares for sale.

FirstCry is seeking a valuation that's about 3.5 times its revenue, which topped Rs 6,500 crore in the fiscal year 2024. Although the valuation is lower than some had hoped, experts believe this might be a smart move to attract both big and small investors.

The IPO will include a sale of 5.4 million shares, with major shareholders like SoftBank, which owns 25.53% of the company, planning to sell a significant portion. Other investors such as Mahindra & Mahindra, Premji Invest, TPG Growth, and NewQuest Asia will also sell some of their shares.

SoftBank is the biggest stakeholder in FirstCry, followed by Mahindra & Mahindra and Premji Invest. The company's founder, Supam Maheshwari, holds a 6% stake, and the employee stock option pool makes up 8.4% of the shares.

For the fiscal year 2024, FirstCry's revenue grew by 15% to Rs 6,481 crore, up from Rs 5,633 crore in the previous year. Its revenue primarily came from sales through its stores and online. The company also earned Rs 1,209 crore from its subsidiary, GlobalBees. FirstCry managed to cut its losses by 34% to Rs 321 crore, showing better profitability.