FirstCry IPO: Startup Bags INR 1885.8 Cr From Anchor Investors

FirstCry Shares Rally Despite Fresh Legal Troubles

SUMMARY

FirstCry has allotted 4.05 Cr shares to 71 anchor investors as part of the round

The anchor round saw participation from the Government of Singapore, ADIA, Nomura, Fidelity India, and Goldman Sachs, among others

FirstCry will look to raise INR 4,193 Cr via its IPO at the upper end of its price band

Omnichannel baby and kids marketplace FirstCry has raised INR 1,885.82 Cr from anchor investors at INR 465 per equity share. The startup allotted 4.05 Cr shares to 71 anchor investors.

FirstCry, in its regulatory filings, mentioned, “The IPO committee of the company at its meeting held on August 5, 2024… has finalised allocation of 4,05,55,428 equity shares, to anchor investors at anchor investor allocation price of INR 465 per equity share (including share premium of INR 463 per equity share)…”

The anchor round saw participation from the Government of Singapore, Abu Dhabi Investment Authority (ADIA), Nomura, Fidelity India, Goldman Sachs, State Bank of India (SBI), ICICI Prudential, and HDFC Mutual Fund, among others.

Overall, eight mutual funds applied for the anchor round through a total of 23 schemes, FirstCry mentioned.

FirstCry’s public issue will open on August 6 and conclude on August 8. It has set a price band of INR 440-465 per equity share for its public issue. At the upper end of the spectrum, it would raise INR 4,193 Cr.

The IPO comprises a fresh issue of shares worth up to INR 1,666 Cr and an offer-for-sale (OFS) component of up to 5.4 Cr equity shares worth up to INR 2,527 Cr.

Investors can bid for a minimum of 32 equity shares and in multiples thereof.

About 75% of the public issue has been set aside for qualified institutional buyers (QIBs), while the remaining 15% and 10% have been earmarked for non-institutional investors (NIIs) and retail investors, respectively.

The startup first filed its IPO draft papers with SEBI in December 2023. However, it withdrew the draft red herring prospectus (DRHP) after the market regulator expressed concern that some of the key metrices were missing from its DRHP.

Following this, FirstCry refiled its DRHP in April this year and received SEBI’s approval for the public issue in June.

FirstCry reported a consolidated net loss of INR 321.5 Cr in the financial year 2023-24 (FY24), down almost 34% YoY. Operating revenue stood at INR 6,480.8 Cr during the year under review compared to INR 5,632.5 Cr in the fiscal ago.

FirstCry’s IPO opens on the same day when the public offering of another startup, Unicommerce, opens for bidding.

Update | August 6, 11:32 AM

The article has been edited to correct the amount raised by FirstCry from anchor investors via its IPO at INR 1885.8 Cr from INR 188.5 Cr earlier.

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