FirstCry Founder Supam Maheshwari Offloaded 62 Lakh Shares Before Filing Of DRHP

FirstCry FY24: Loss Narrows 34%, Revenue Crosses INR 6K Cr Mark Ahead Of IPO

SUMMARY

FirstCry’s DRHP shows that 10 days prior to its filing, Maheshwari’s stake in the startup stood at 7.46% with over 3.5 Cr shares as against a 5.95% stake or 2.89 Cr shares on the day of filing

Supam Maheshwari sold the shares in the startup in secondary sale transactions on December 20 and 21. The share price was INR 487.44 per equity share for both the transactions

FirstCry is looking to raise INR 1,816 Cr through a fresh issue of shares while there is also an offer-for-sale (OFS) component comprising up to 5.4 Cr equity shares

SoftBank-backed ecommerce unicorn FirstCry’s founder and MD Supam Maheshwari offloaded over 62 Lakh shares in the startup just a few days prior to filing the DRHP for over INR 1,816 Cr IPO.

As per the company’s DRHP, Maheshwari held 2.89 Cr shares or a 5.95% stake in FirstCry on the date of filing the DRHP – December 27, 2023. The draft filing shows that 10 days prior to that, Maheshwari’s stake in the startup stood at 7.46% with over 3.5 Cr shares.

Maheshwari sold the shares in the startup in secondary sale transactions. As per the draft papers, over 41 Lakh shares were sold on December 21 and 27.9 Lakh shares on December 20. The share price was INR 487.44 per equity share for both the transactions.

The startup was valued at over INR 23,000 Cr for the secondary sale transactions, as per Moneycontrol.

The DRHP also revealed that 1.49 Cr shares were transferred 10 days prior to the filing of the draft papers to the company’s ESOP trust.

In its IPO, FirstCry is looking to raise INR 1,816 Cr through a fresh issue of shares while there is also an offer-for-sale (OFS) component comprising up to 5.4 Cr equity shares.

The OFS will see the likes of SoftBank, Premji Invest, Mahindra & Mahindra, TPG, and Ratan Tata sell their shares. Maheshwari is also set to offload another 18.2 Lakh shares during the IPO.

Two years back, Maheshwari held only a 2.29% stake in the parent entity of FirstCry. However, his stake kept on increasing from there on. As of now, the founder is the fifth largest stakeholder in the company after the secondary sale in December.

FirstCry, which primarily earns from selling babycare products on its platform, reported consolidated sales of INR 1,406.9 Cr in the first quarter of FY24. In FY23, its consolidated operating revenue stood at INR 5,632.5 Cr.

The startup also reported a net loss of INR 110.4 Cr in Q1 FY24 while its loss in FY23 stood at INR 486 Cr. The company spent INR 45.2 Cr in ESOP expenses in Q1 of the current fiscal.