FirstCry, an e-commerce platform specializing in mother and child care products, is on the brink of entering the stock market, prompting major shareholder SoftBank Vision Fund to strategically divest a significant portion of its shares ahead of the anticipated initial public offering (IPO). In a move designed to create opportunities for other investors, SoftBank has reduced its ownership in the company to less than 25 percent by selling shares valued at ₹600 crore before the public offering, a notable reduction from its previous holding of approximately 30 percent.
Key investors seizing this opportunity include the family offices of cricket legend Sachin Tendulkar, Ravi Modi of Manyavar, Kris Gopalakrishnan, co-founder of Infosys, and the TVS group family, according to a report by The Economic Times. The move signifies a growing interest from prominent figures and investment firms in securing positions in FirstCry before its IPO.
This divestment follows earlier investments from family offices such as Ranjan Pai (Manipal Group), Harsh Mariwala (Marico), and Hemendra Kothari’s DSP family offices, as reported by ET in August. These strategic investments have set the stage for an intriguing financial landscape as FirstCry prepares for its market debut.
SoftBank’s initial injection of $400 million into FirstCry in 2020 positioned the company for growth, with current expectations placing its potential valuation at $4 billion upon listing. The divestment of shares by SoftBank, valued at ₹600 crore, serves as a prelude to what is anticipated to be a dynamic IPO.
While FirstCry’s previous valuation stood at $3 billion, there are strong indications that the IPO valuation could reach $4 billion. The IPO aims to raise $500 million, with 37 percent of the stake allocated for a fresh issue and the remainder through Offer For Sale (OFS). This strategic approach aims to attract new investors to FirstCry’s capital table.
Reports suggest that the company is gearing up to initiate its IPO following the Lok Sabha elections, a move expected to catalyze a surge in the Indian stock market. The timing aligns with a broader strategy to leverage favorable market conditions and maximize investor interest.
As the company readies itself for this significant financial milestone, it is set to welcome new investors, including Premji Invest—the family office of Wipro founder Azim Premji, and the Mahindra group. The IPO filing is scheduled for December 29, with additional details about the offering expected to be disclosed at that time.
In summary, FirstCry’s journey towards its IPO reflects a strategic realignment of its shareholder landscape, with SoftBank reducing its stake to facilitate broader investor participation. The involvement of renowned family offices and investment firms underscores the industry’s confidence in the potential success of FirstCry’s public offering, positioning the e-commerce platform as a key player in the evolving landscape of mother and child care products. The upcoming IPO is poised to be a pivotal moment for FirstCry, marking its entry into the public markets and signaling a new chapter in its growth trajectory.
