FirstCry's Parent Company, Brainbees Solutions, Initiates IPO Filing; Mahindra & Mahindra to Divest 0.58% Stake

Brainbees Solutions Pvt Ltd, the parent company of the renowned childcare startup FirstCry, has officially filed its initial public offering (IPO) paperwork. In conjunction with this development, automotive giant Mahindra & Mahindra is set to divest 0.58 percent of its stake in the company.

As per the exchange filings, Mahindra & Mahindra will be selling approximately 28.06 lakh shares, representing 0.58 percent of the company's equity, each with a face value of ₹2. The sale of these shares is part of the Offer For Share (OFS) component of the IPO, contributing to 0.58% of the existing issued and paid-up equity share capital of Brainbees.

While the price band of the shares has not yet been determined, Brainbees Solutions submitted its draft IPO paperwork to the Securities and Exchanges Board of India (SEBI) on Thursday. The IPO launch is anticipated in early 2024, coinciding with the outcome of the Lok Sabha elections, expected to stimulate market dynamics.

Mahindra & Mahindra clarified that the precise number of shares for the OFS will be finalized at the conclusion of the Book Building Process by Brainbees and the Book Running Lead Managers.

Ahead of the IPO, several family offices, including those of cricket legend Sachin Tendulkar, Manyavar's Ravi Modi, Infosys co-founder Kris Gopalakrishnan, and the TVS group family, have acquired equity shares, bolstering FirstCry's market performance.

Financial Insights for 2023: Brainbees Solutions reported its financial performance for the year 2023 to the Corporate Affairs Ministry's website ahead of the SEBI filing. The company disclosed a total loss before tax of ₹585 crore, with ESOPS costs amounting to ₹361 crore. Notably, Brainbees achieved a robust business growth of 133 percent during the period.

The impending FirstCry IPO is anticipated to raise over $500 million, with a segmentation between OFS and fresh issue. However, the company has yet to finalize the IPO's date and price band.

Investors and market enthusiasts are keenly awaiting further details as Brainbees Solutions takes significant steps towards its IPO, marking a milestone in the journey of FirstCry and signaling noteworthy changes in the childcare and e-commerce sectors.