One day prior to the start of its inaugural share sale, Brainbees Solutions Ltd, the parent company of online e-commerce platform FirstCry, announced that it had received Rs. 1,886 crore from anchor investors. According to a circular uploaded on the BSE website, the anchor investors include the Government of Singapore, Nomura Funds, Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs Funds, Citigroup Global Markets Mauritius, SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Kotak MF, and SBI Life Insurance Company.
According to the circular, Brainbees Solutions has allotted 4.05 crore equity shares to 71 funds at Rs. 465 apiece, which is also the upper end of the price band. This takes the transaction size to Rs. 1,886 crore.
The firm intends to utilise the net proceeds from the new offering for the purpose of opening up new, contemporary stores under the ‘BabyHug’ brand, investing in subsidiaries, expanding internationally, and launching sales and marketing campaigns. Additionally, a percentage will be applied to general business needs. The post-issue market capitalisation of the company has been estimated by broking companies to be Rs. 24,142 crore.
FirstCry is the largest multi-channel, multi-brand selling platform for mother’s, baby’s, and kids’ products in India. It was founded in 2010. The establishment aimed to establish a unified location for all parenting requirements in the areas of commerce, content, community involvement, and education, through customer loyalty, brand affinity, and trust. Additionally, FirstCry entered a few foreign markets and grew there, opening offices in the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) in 2022 and 2019 respectively.