Ratan Tata To Offload His Stake In FirstCry Through Its Upcoming IPO
Business tycoon Ratan Tata is selling out his stake in the e-commerce platform FirstCry through its upcoming initial public offering (IPO). Ratan Tata holds 77,900 shares, or a 0.02 percent stake, which he bought for Rs. 66 lakhs in 2016, in Brainbees Solution, which operates omnichannel businesses of kidswear under the brand name FirstCry.
According to the draft red herring prospectus (DRHP) filed by Brainbees Solutions with capital markets regulator Securities and Exchange Board of India (SEBI), the IPO consists of a fresh issue and an offer for sale by existing shareholders and promoters.
The company is planning to raise ₹1,816 crore via a fresh issue, while the offer for sale includes existing investors such as Mahindra & Mahindra (M&M), private equity firm TPG, NewQuest Asia, and SoftBank, collectively selling 5.44 crore shares.
SoftBank is the major shareholder in the first round with a 25.5 percent stake, while Mahindra will be selling 0.58 percent and SoftBank will be offloading 2.03 crore shares. According to the DRHP, FirstCry is considering a private placement of shares worth ₹363.20 crore before the IPO, which is expected to be held by early 2024.
As per the DRHP, net proceeds will be used to set up new retail stores, warehouses, and international expansion. Kotak, Morgan Stanley, Bofa Securities, JM Financial, and Avendus are the book-running lead managers, and Link Intime India Private Limited is the registrar of the offer.
