FirstCry is finally set to file its draft papers for initial public offerings, reported The Economic Times. The e-commerce site has been postponing its IPO citing market volatality. As per The Economic Times, the Draft Red Herring Prospectus (DRHP) is likely to be filed before December 29.
The company is planning to raise $500-600 million via the initial public offering. As per The Economic Times, the valuation could be approximately $4 billion at the time of the IPO. The IPO size is also almost half of what was already planned.
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The Economic Times quoted people who are aware of the development and said that the issue will be 35-37% in primary share sale on a $500-million issue size, with the rest being in secondary or an offer for sale — where existing investors will part-sell stake. Globalbees, where FirstCry owns more than 50%, will be listed as a group company in the DRHP
As per The Economic Times, ahead of the IPO three family investment offices had picked up stakes in FirstCry for about Rs 435 crore ($52 million) in August. Ranjan Pai’s MEMG Family Office, Harsh Mariwala’s Sharrp Ventures and Hemendra Kothari’s DSP Family Office mostly bought stakes from FirstCry’s largest investor, SoftBank.
After Nykaa which went public in 2021, FirstCry will the first Indian vertical e-commerce platform to undergo an initial public offering (IPO).