FirstCry's IPO Attracts Major Investors, Secures Rs 1,885.80 Crore in Anchor Portion

FirstCry, the renowned omnichannel kidswear brand operated by Brainbees Solutions, has successfully closed the anchor portion of its highly anticipated initial public offering (IPO). The company has allocated shares worth a staggering Rs 1,885.80 crore to both domestic and foreign investors. This significant milestone marks a pivotal moment for the brand as it prepares for its public debut.

Prominent Investors Join the Anchor Investment Round

A diverse array of prestigious investors participated in the anchor investment round, underscoring the confidence in FirstCry's potential. Among the notable investors are:

• Government of Singapore

• Abu Dhabi Investment Authority

• Nomura

• Fidelity

• SBI Blue Chip Fund

• SBI Mutual Fund

• ICICI Prudential Mutual Fund

• HDFC Mutual Fund

• Kotak Mahindra Mutual Fund

• Goldman Sachs Funds

• SBI Life Insurance

• Nordea Asset Management

• Max Life Insurance Company Limited

• Norges Bank

• PSP

• Carmignac

These investors were allocated shares at Rs 465 apiece, positioned at the upper end of the IPO price band. In total, 4,05,55,428 equity shares were distributed to the anchor investors, with 1,51,60,928 equity shares allocated to eight domestic mutual funds through 23 schemes.

IPO Subscription Details

FirstCry's IPO is set to open for subscription on August 6 and will close on August 8, as detailed in the company’s red herring prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI). Prospective investors can place bids for a minimum of 32 equity shares and in multiples of 32 equity shares thereafter.

Adjusted Issue Size and Offer-for-Sale Details

The SoftBank and Premji Invest-backed retailer has adjusted the size of its fresh issue to Rs 1,666 crore, representing an 8.2% decrease from the Rs 1,816 crore initially disclosed in the draft red herring prospectus (DRHP). However, the plan for existing investors to sell up to 54 million shares through an offer-for-sale (OFS) remains unchanged.

Notably, SoftBank-operated SVF Frog plans to divest up to 20.3 million shares in the IPO through the OFS. Mahindra & Mahindra (M&M) will sell 2.8 million shares, while other investors including Premji Invest, TPG Growth, NewQuest Asia Investments, Apricot Investments, Satyadharma Investments and Trading Company, Schroders Capital Private Equity Asia Mauritius, Sage Investment Trust, and Pratithi Investment Trust will also participate in the OFS.

Valuation and Financial Performance

At the upper end of the issue price, FirstCry is valued at $2.9 billion, closely mirroring its last private valuation of $2.8 billion. The company reported impressive financial performance in FY24, with operating revenue growing by 15% to Rs 6,481 crore and losses reduced by 34% to Rs 321 crore, as per the RHP.

Book-Running Lead Managers

The book-running lead managers for FirstCry's IPO include prominent financial institutions such as Kotak Investment Banking, Morgan Stanley, BofA Securities, JM Financial, and Avendus.