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FirstCry, a leading retailer of baby and mother care products, is preparing to file its red herring prospectus (RHP) this week for an initial public offering (IPO), with a valuation anticipated between $3 billion and $3.5 billion. The IPO will feature a primary fundraising of $217 million (Rs 1,816 crore) and an offer-for-sale (OFS) of 54 million shares, generating substantial interest from investors.
FirstCry, which was valued at $2.8 billion during its most recent private funding round, has carefully prepared for this public offering. The company refiled its draft IPO papers with the Securities and Exchange Board of India (SEBI) on April 29, incorporating updated financial metrics and responding to SEBI’s requests for additional details.
The draft red herring prospectus (DRHP) reveals that FirstCry reported revenue of Rs 4,814 crore for the nine months ending December 31, 2023, with a loss of Rs 278 crore during the same period. In FY23, the company achieved an operating revenue of Rs 5,633 crore but faced a loss of Rs 486 crore, a significant increase from FY22’s operating revenue of Rs 2,401 crore and a loss of Rs 79 crore.
The IPO is scheduled to open for subscription this week and is expected to close before August 15. This offering includes an OFS component, allowing existing shareholders to liquidate part of their holdings and offering broader public participation.
FirstCry’s robust online presence, with over 75% of sales derived from digital channels, underscores its leading position in e-commerce for baby and mother care products. The IPO funds will support business expansion, technology enhancement, and logistics improvements.
With the Indian e-commerce sector booming, FirstCry’s IPO comes at a favourable time, attracting significant market interest. Investors will closely watch the subscription levels and stock performance following the listing.