FirstCry Parent Brainbees Solutions' IPO To Open On Aug 6

The initial public offering of Brainbees Solutions Ltd., the parent firm of online e-commerce platform FirstCry, will open for subscription on Aug. 6 after it was approved by the markets regulator early this month.

The public issue consists of a fresh issue of shares worth Rs 1,666 crore and an offer-for-sale component consisting of 5.43 crore shares, according to the red herring prospectus. The size of the fresh issue was brought down from Rs 1,816 crore when it filled its preliminary papers.

The IPO will end on Aug. 8. The company will raise funds from its anchor investors on Aug. 5.

Under the offer for sale, SVF Frog, an affiliate of Softbank, will sell 2.03 crore equity shares and automaker Mahindra & Mahindra Ltd. will offload 28.06 lakh shares of the company.

Currently, Softbank holds a 25.55% stake in Brainbees Solutions, and M&M owns a 10.98% stake in the multi-brand retailing platform.

FirstCry parent had refiled its papers for an IPO in April after the Securities and Exchange Board of India sought additional information and sent back the company's initial set of documents.

Kotak Mahindra Capital Co., Morgan Stanley India Co., BofA Securities India Ltd., JM Financial Ltd., and Avendus Capital Pvt. will be the book-running lead managers for the issue.

Net proceeds from the issue will be used for general expenditure, expenditure for lease payments, investment in its subsidiaries among others.

Brainbees Solutions is a one-stop store for parents' retail, content, community engagement, and education needs. The company offers apparel, footwear, baby gear, nursery, diapers, toys, and personal care, for infants and children up to the age of 12 years.