Brainbees Solutions Ltd, the parent company of baby products e-commerce platform FirstCry, is set to launch its Initial Public Offering (IPO). The company submitted an application for IPO with the market regulator Securities and Exchange Board of India (SEBI) on Thursday, December 28, according to a Moneycontrol report.
The leading Pune-based company aims to raise Rs 1,816 crore through the IPO, which will comprise primary issue of equity shares and an offer for sale (OFS).
Several existing shareholders including former Tata Group Chairman like Ratan Tata is expected to divest their shareholding in the company through the upcoming IPO. According to the Draft Red Herring Prospectus (DRHP) filed with SEBI on Thursday, Ratan Tata is looking to sell all 77,900 shares, PTI reported.
These shares amount to Tata’s 0.02 percent stake in Brainbees Solutions Ltd. Tata became an investor in the company in 2016 by infusing Rs 66 lakh initially. He was allotted the shares under preferential allotment.
As per the DRHP, the Pune-based company’s proposed IPO comprises an OFS of up to 5.44 crore equity shares. Apart from the fresh issue of shares, existing investors like Mahindra and Mahindra (M&M), private equity firm TPG, NewQuest Asia and SoftBank, will together sell a total of 5.44 crore shares in Brainbees via an Offer for Sale (OFS), the Moneycontrol report added.
However, there is no information as of now regarding the total size and the issue price of the IPO.
According to PTI, SVF Frog, a Cayman Islands-registered entity of Softbank will also divest its stake in the parent company of FirstCry. It will sell 2.03 crore equity shares of Brainbees Solutions Ltd. Automaker M&M will offload 28.06 lakh shares of the company. Apricot Investments, Valiant Mauritius, TIMF Holdings, Think India Opportunities Fund, and Schroders Capital will also sell their shares.
In an IPO, fresh shares are issued, allowing new investors to participate in the bidding process. In OFS, major shareholders sell the existing shares. This makes it a resale rather than an issuance. The companies take the IPO route to raise funds for growth, expansion, or debt repayment.
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