FirstCry IPO: Brainbees Solutions receives Sebi approval for its public issue

FirstCry IPO: Brainbees Solutions Limited, the operator of FirstCry, has received the Securities and Exchange Board of India's (SEBI) approval for its proposed initial public offering (IPO).

According to Sebi disclosure, the market regulator received FirstCry's final observation letter on 25 June, which means the companies have clearance to list on the bourses.

Sebi had sought additional documents on Key Performance Indicators (KPIs), following which FirstCry parent company Brainbees Solution refiled their papers for an IPO in April of this year.

According to the fresh draft red herring prospectus (DRHP), Pune-based Brainbees Solutions' proposed IPO is a combination of a fresh issue of equity shares, aggregating up to ₹1,816 crore and an offer for sale (OFS) of up to 5.44 crore equity shares by existing shareholders

Supam Maheshwari-led company's IPO is expected to raise about ₹3,700 crore in a combination of a fresh issue and an offer for sale, reports NDTV.

Brainbees Solution in their official statement informed that Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, BofA Securities India Limited, JM Financial Limited, and Avendus Capital Private Limited are the Book-Running Lead Managers for the issue.

Under the OFS, SVF Frog, a Cayman Islands-registered entity of Softbank, will sell 2.03 crore equity shares of Brainbees Solutions Ltd, and automaker Mahindra & Mahindra (M&M) will offload 28.06 lakh shares of the company.

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

The offer for sale comprises of

-Up to 20,318,050 Equity Shares by SVF Frog (Cayman) Ltd

-Up to 2,806,174 Equity Shares by Mahindra & Mahindra Limited

-Up to 8,601,292 Equity Shares by PI Opportunities Fund- 1

-Up to 3,899,525 Equity Shares by TPG Growth V SF Markets Pte. Ltd.

-Up to 3,014,233 Equity Shares by NewQuest Asia Investments III Limited

-Up to 2,523,280 Equity Shares by Apricot Investments Limited

-Up to 2,404,344 by Valiant Mauritius Partners FDI Limited

-Up to 837,676 Equity Shares by TIMF Holdings (Mauritius)

-Up to 837,676 Equity Shares by Think India Opportunities Master Fund LP (Cayman)

-Up to 616,945 Equity Shares by Schroders Capital Private Equity Asia Mauritius II Limited (Corporate Selling Shareholders)

Apart from this, three more companies -- SaaS platform Unicommerce eSolutions, Maharashtra-based Gala Precision Engineering and Interarch Building Products -- obtained the regulator's nod to float the initial share sale.

These companies -- who filed their preliminary IPO papers with Sebi between January and May 2024 -- obtained the regulator's observations during June 25-28, according to the update.