FirstCry, the Pune-based omnichannel marketplace, has refiled its draft red herring prospectus (DRHP) after the Securities and Exchange Board of India (SEBI) stated that the firm, led by Supam Maheshwari, failed to disclose several critical indications in draft documents filed in December.
According to the recent DRHP filing, the IPO offer remains unchanged. The startup plans to raise INR 1,816 Cr through the issuance of fresh shares, while the offer-for-sale (OFS) component involves shareholders selling 5.4 Cr equity shares.
Shareholders such as SoftBank, Premji Invest, TPG Growth, and Mahindra, among others, are set to participate in the offer-for-sale (OFS).
Continue Exploring: FirstCry set to withdraw DRHP, to refile IPO papers with Q3 FY24 figures
The startup, in coordination with the Book Running Lead Manager (BRLMs), is considering raising a Pre-IPO placement of approximately INR 363 Cr from select investors. If the Pre-IPO Placement is finalized, the amount raised through it will be deducted from the fresh issue.
As per the DRHP, the startup disclosed its plans to utilize the proceeds from the fresh issue for:
In its Draft Red Herring Prospectus (DRHP), the startup outlined its plans for utilizing the funds raised from the fresh issue. These include investing INR 388.2 Cr in its subsidiary, Digital India, to establish new modern stores under the FirstCry brand name and other home brands, as well as covering lease payments for existing FirstCry stores.
Additionally, the company intends to allocate INR 173.5 Cr to invest in its subsidiary, GlobalBees Brands, for acquiring additional stakes in its step-down subsidiaries. Another portion of the funds, amounting to INR 140.7 Cr, will be directed towards setting up new modern stores under the brand name “BabyHug” and establishing new warehouses.
Furthermore, INR 150 Cr is earmarked for sales and marketing initiatives to further expand its market presence. Lastly, INR 57.6 Cr will be dedicated to covering technology and data science costs, including expenses related to cloud and server hosting.
During the initial nine months of FY24, the startup recorded sales totaling INR 4,814 Cr, accompanied by a loss amounting to INR 278.2 Cr. Notably, the largest expenditure for the startup remains its procurement cost, reaching INR 3,108.1 Cr, constituting 60% of the startup’s overall expenses, which amounted to INR 5,159.7 Cr during the first three quarters of FY24.
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