Respected industrialist Ratan Tata has expressed his intention to sell his complete ownership in FirstCry, as outlined in the recently submitted draft red herring prospectus to SEBI. Tata, who initially invested ₹66 lakh for a 0.02 per cent stake, is planning to divest all 77,900 shares at an average cost per share of ₹84.72.
IPO details and Brainbees' strategic moves
Brainbees, the parent company of FirstCry, is planning to issue fresh shares valued at ₹1,816 crores, while also allowing existing investors to sell 54.39 million shares through an Offer For Sale (OFS). This strategic decision is expected to pave the way for significant growth for FirstCry in the upcoming year.
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Key sellers other than Ratan Tata
Tata is joined in the OFS by several esteemed entities, including SoftBank's SVF Frog (Cayman), Mahindra & Mahindra, PI Opportunities Fund-1, TPG Growth V SF Markets Pte., NewQuest Asia Investments, and others. This diverse list highlights the considerable interest in FirstCry's future.
FirstCry's Ambitious Use of IPO Proceeds
The IPO proceeds are designated for important initiatives, highlighting the company's dedication to expanding and innovating.
1.FirstCry is currently considering plans to establish new stores and warehouses to further strengthen its presence in the market.
2. Overseas Ventures: Investment in subsidiary FirstCry Trading for overseas expansion, with a focus on setting up new warehouses and stores in Saudi Arabia.
3. Strategic Investment: Allocation of funds to Globalbees Brands to acquire additional stakes in indirect subsidiaries, which will strengthen FirstCry's position in the market.
4. Sales and Marketing Initiatives: A considerable amount will be allocated towards sales and marketing endeavours to ensure continuous brand visibility.
5. Technology and Data Science: To address the digital landscape, funds will be directed to technology and data science, to cover expenses related to cloud and server hosting.
6. FirstCry intends to explore opportunities for inorganic growth through acquisitions and strategic initiatives, showcasing a dynamic approach to expanding its presence in the market.
In conclusion
Ratan Tata's departure from FirstCry shares signifies a new chapter for the company, ready to embark on a strategic growth journey with an ambitious roadmap detailed through the IPO proceeds.
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