FirstCry IPO: Unicorn To Refile DRHP With Q3 FY24 Numbers

FirstCry IPO: Public Issue Subscribed 11% On Day 1, Employees Show Highest Interest

SUMMARY

The refiling of DRHP will delay FirstCry’s public listing by a few months and the ecommerce platform will now hit the bourses in July-August

This follows reports that said that FirstCry is set to withdraw the DRHP for its $500 Mn IPO after SEBI raised questions over the key metrics disclosed in the draft documents

The unicorn filed its DRHP with SEBI in December last year for raising INR 1,816 Cr through a fresh issuance of shares and an OFS component of up to 5.4 Cr shares

Kids-focussed omnichannel retailer FirstCry reportedly plans to withdraw its draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) and file new IPO papers later next week.

Citing sources, Moneycontrol reported that the startup will now refile the DRHP with updated financial numbers and key performance indicators from the quarter ended December 2023.

Earlier, a Reuters report said FirstCry parent Brainbees Solutions Ltd is set to withdraw its DRHP for $500 Mn IPO after the market regulator raised questions over the key metrics disclosed by FirstCry in the draft documents.

As per Moneycontrol, FirstCry had only disclosed 5-6 KPIs as against 25 sought by the markets regulator.

For ecommerce platforms, KPIs are generally referred to metrics such as number of orders, average order value, gross order value, annual transacting customers, among others.

The report also said that SEBI and FirstCry have been trying to build a consensus on the matter of KPIs for a month now. Sources reportedly added that the refiling of DRHP will delay FirstCry’s public listing by a few months and the ecommerce unicorn is now expected to hit the bourses in July-August.

The development comes at a time when SEBI has ramped up the scrutiny of new-age tech companies looking to list on the bourses. In 2022, the regulator kept Go Digit General Insurance’s IPO in abeyance. Consequently, the insurtech startup refiled its DRHP and received SEBI’s go ahead for its IPO only last month.

FirstCry filed its DRHP with the regulator in December last year for raising INR 1,816 Cr through a fresh issuance of shares. The IPO will also comprise an offer-for-sale (OFS) component of up to 5.4 Cr equity shares.

The proceeds from the IPO will go towards setting up new retail stores and warehouses and undertaking international expansion.

As per the DRHP, Japanese investment giant SoftBank is the biggest shareholder in the startup, followed by Mahindra & Mahindra and Premji Invest. The draft documents also revealed that the Pune-based company incurred a consolidated net loss of INR 110.4 Cr in Q1 FY24 as against a net loss of INR 486 Cr in the entire FY23.

Meanwhile, the startup’s operating revenue stood at INR 1,406.9 Cr in Q1 FY24 as against INR 5,632.5 Cr in the entire FY23.