After Ola Electric, Omnichannel retailer FirstCry to file draft IPO papers in the next week

FirstCry, an omnichannel retailer specializing in products for children and mothers, is gearing up to file its draft IPO papers by the end of this month (December). 

The report comes after FirstCry delayed its public listing last year due to unstable market conditions. According to an ET report, which first reported the development, The company aims to raise between $500-600 million through this public offering.

The report added that FirstCry's valuation could be around $4 billion at the time of the IPO. The filing with the market regulator SEBI is expected before December 29, with the listing likely to occur post the 2024 general elections.

Investment and valuation insights

Earlier in August this year, FirstCry raised approximately Rs 435 crore from Indian family investment offices, including Ranjan Pai's MEMG Family Office, Harsh Mariwala's Sharrp Ventures, and Hemendra Kothari's DSP family office.

The investments involved buying stakes from FirstCry's largest investor, SoftBank. To comply with India's FDI laws, FirstCry must keep its foreign shareholding below 51%. SoftBank is reducing its stake to below 26% to avoid being classified as a promoter of the company.

Becoming the second Indian ecommerce platform to launch an IPO

If FirstCry, headquartered in Pune, files its Draft Red Herring Prospectus (DRHP), it will become the second Indian vertical e-commerce platform to launch an initial public offering (IPO), following in the footsteps of Nykaa's IPO in 2021. 

The company, known for its extensive range of products, caters to its customers through both online and offline channels, showcasing a versatile business model in the e-commerce sector.

Softbank's stake acquisition

Earlier in August, Three family investment offices --- Ranjan Pai’s (Manipal Group) MEMG Family Office, Harsh Mariwala’s (Marico) investment office Sharrp Ventures and Hemendra Kothari’s DSP family office --- reportedly acquired Softbank’s stake worth Rs 435 crore or around $52 million in kidswear startup FirstCry.

The deal reportedly diluted the Japanese investment giant's stake from 29% to 27-27.5% in the company.

Ola Electric's upcoming IPO

Bhavish Aggarwal-led EV giant Ola Electric, which is another SoftBank portfolio company, is also preparing to file its Draft Red Herring Prospectus (DRHP) this month. 

According to media reports, Ola Electric's management has already begun meetings with international and domestic investors, planning to launch its IPO in early 2024, potentially before FirstCry. 

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