Baby and mothercare retailer FirstCry is all set to file its red herring prospectus (RHP) for its initial public offering this week at $3-3.5 billion. This is as per an Economic Times report.
As per its draft IPO documents, FirstCry's offer size will remain consistent at $217 million (Rs 1,816 crore) for the primary fundraising, reads the report.
Speaking to the Economic Times, a source said, “FirstCry will launch its IPO for subscription officially this week and wants to close it before August 15.”
This is not the first time that the company is trying to file for an IPO. In April this year, the company filed for an IPO with the Securities and Exchange Board of India.
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This was after the market regulator raised concerns about the company’s key performance metrics and asked it to give some clarity. Here key performance indicators include the number of orders, annual transacting customers, average order value, and others. While the market regulator had asked for 25 key performance indicators, in its initial submission, FirstCry provided only 5-6 key performance indicators.
Additionally, an offer for the sale of 54 million shares will be there. Under an offer for sale, shares can be sold to the public by existing shareholders. During its last funding round, the company was valued at $2.8 billion.
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Those who will be divesting their stake at the IPO include SoftBank Vision Fund, Premji Invest, Mahindra Retail, and TPG Growth, adds the report. Additionally, to give early investors an exit, the company has been conducting secondary financing.
Speaking to the Economic Times, a source said, “They have been facilitating secondary financing for the last couple of years to give early investors an exit. Valuation has not been a major concern, as new investors can exit at a higher price within a year.”
