- By Aditya Pratap Singh
- Thu, 28 Dec 2023 03:43 PM (IST)
- Source:JND
Brainpeace Solutions Ltd, which owns baby and mother-care product platform First Cry, on Thursday filed preliminary documents with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The Pune-based company's proposed IPO, according to the Red Herring Prospectus (DRHP), involves a fresh issue of equity shares worth up to Rs 1,816 crore by existing shareholders and an offer for sale (OFS) of 5.44 crore shares.
As part of OFS, SoftBank's Cayman Islands-registered company SVF Frog will sell 2.03 crore shares of Brainbees Solutions Ltd and offload 28.06 lakh shares of automaker Mahindra & Mahindra (M&M).
Currently, SoftBank holds a 25.55 per cent stake in Brainpeace Solutions and M&M holds a 10.98 per cent stake in the multi-brand retail platform, draft documents show.
Earlier this week, SoftBank sold Rs 630 crore worth of stake in FirstCry. It was bought by a few high-net-worth individuals. With the sale, the Japanese investment group raised US$310 million from two rounds of stake sales in FirstCry.
SoftBank invested $400 million in FirstCry at an enterprise valuation of $900 million.
Apart from Softbank and M&M, other sold stocks in OFS were PI Opportunities Fund (86.01 lakh shares), TPG (38.99 lakh shares), NewQuest Asia Investments (30.14 lakh shares), Apricot Investments (25.23 lakh shares), Valiant Mauritius (24.04 lakh shares). shares), TIMF Holdings (8.37 lakh shares), Think India Opportunities Fund (8.37 lakh shares) and Schroders Capital (6.17 lakh shares).
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Proceeds from the new launch will be used to open new stores and warehouses in India and Saudi Arabia (KSA), and the capital will be used to invest in sales and marketing initiatives and the company's subsidiary Globalbees. Brands, to buy additional shares in its indirect subsidiaries.
The company's consolidated net loss increased to Rs 486.05 crore in FY2022-23 from Rs 78.68 crore in the previous fiscal. However, for the fiscal year ending March 31, 2023, its consolidated revenue more than doubled to Rs. 5,632.53 crore as against Rs 2,401.28 crore a year ago.
First Cry, launched in 2010, is India's largest multi-channel, multi-brand retail platform for mothers, babies and children. It was set up to create a one-stop destination for brand communication, loyalty and customer trust that caters to the needs of parents in commerce, content, social engagement and education.
As of June 30, 2023, the company delivered more than one million SKUs (stock-keeping units) from over 6,800 brands, including third-party Indian brands, global brands and their home brands. It has a network of 936 FirstCry and BabyHug modern stores in 465 cities across 27 states and four union territories across India.
Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Private Ltd, BofA Securities India Ltd, JM Financial Ltd and Avendus Capital Private Ltd are the lead managers of the issue.
(With PTI Inputs)
