BrainBees Solutions Pvt., the parent company of online clothing brand FirstCry, filed an application for IPO with SEBI on Thursday.
According to the Draft Red Herring Prospectus (DRHP) filed with SEBI, the company will issue a fresh issue in this IPO and the promoters will sell their stake through Offer for Sale (OFS). Pune-based BrainBiz has decided to issue a fresh issue worth Rs 1,816 crore. At the same time, the existing investors of the company, which also includes SoftBank, will sell 5.44 crore shares through OFS.
The company is also considering raising Rs 363.2 crore through pre-IPO placement.
Use of money?
According to DRHP, the company will spend Rs 648 crore on expansion, which includes opening new modern stores, warehouses and clearing outstanding payments.
The company will also spend Rs 156 crore on expansion in Saudi Arabia and the remaining money will be used in purchasing additional stake in indirect subsidiary, marketing, technology, inorganic growth.
FirstCry’s balance sheet
- Loss of Rs 110.4 crore on sales of Rs 1,407 crore in Q1 FY24.
- Sales in FY23 stood at Rs 5,632.5 crore, loss of Rs 486 crore.
- Sales in FY22 were Rs 2,401.2 crore, loss of Rs 78.6 crore
- The increase in losses was due to increase in capex by Rs 6,271.2 crore. The company was profitable in FY21.
Unicorn created in 2020?
Launched in 2010, the company sells a wide range of products for babies, children and mothers in online and offline stores. The company raised $425 million in 2020 and became a unicorn. SoftBank has invested $300 million in the company.
