FirstCry, India’s leading baby and mother care products retailer, is set to file its final IPO papers this week. The company is aiming for a valuation of $3-3.5 billion in its much-anticipated public offering.
Key Highlights
- IPO Timeline: FirstCry plans to officially launch its IPO subscription this week and aims to conclude the process before August 15.
- Strong Investor Interest: The company has reportedly received significant interest from traditional investors for its anchor book.
- Secondary Share Sale: The IPO will include an offer-for-sale (OFS) of 34 million shares by existing shareholders.
- Valuation: FirstCry was valued at $25 billion in its last funding round. However, recent IPO trends indicate a potential downward adjustment in valuation.
- Financial Performance: The company reported a revenue of Rs 4,306 crore for the nine months ended December 2023, with a net loss of Rs 275 crore.
- Store Network: FirstCry operates a network of 1,015 stores across India, with 386 owned stores and the rest being franchises.
- IPO Proceeds: The funds raised through the IPO will be utilized for expanding store network, warehouses, and foraying into new categories.
Secondary Share Sale by Early Investors
FirstCry facilitated a secondary share sale in August 2023, allowing early investors like Ranjan Pai’s Claypond Capital, Harsh Mariwala’s Sharp Ventures, and Hemendra Kothari’s DSP family office to exit partially. The company has been actively enabling secondary sales to provide liquidity to early investors.
SoftBank, Mahindra & Mahindra, and Promoters to Sell Shares
Prominent investors such as SoftBank, Mahindra & Mahindra, and company founder Supam Maheshwari are expected to participate in the OFS component of the IPO.
Challenges in the IPO Market
The upcoming FirstCry IPO comes amidst a challenging market environment for new-age tech companies. Recent listings like Ola Electric have seen their share prices trading below their IPO valuation. This trend can potentially impact the pricing of FirstCry’s IPO.
Industry Outlook
The baby and mother care products market in India is witnessing significant growth, driven by increasing disposable incomes and rising awareness about child care. FirstCry, as a dominant player in this segment, is well-positioned to benefit from this trend.
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