FirstCry parent Brainbees moves for IPO, aims for $3.5 billion valuation; Tata and M&M to offload shares

Brainbees Solutions, the parent company of online e-commerce unicorn FirstCry, submitted an application for an initial public offering (IPO) with the market regulator Securities and Exchange Board of India (SEBI) on December 28.

According to several media reports, Tata is offering to sell his entire 77,900 shares, amounting to a 0.02 per cent stake, of FirstCry.

The Pune-based company's proposed Initial Public Offering (IPO) comprises a fresh issue of equity shares aggregating up to Rs 1,816 crore and an Offer For Sale (OFS) of up to 5.44 crore equity shares by existing shareholders, according to the draft red herring prospectus (DRHP) filed on Thursday.

Reportedly, as a part of the OFS, SVF Frog, a Cayman Islands-registered entity of Softbank, will sell 2.03 crore equity shares of Brainbees Solutions Ltd, and automaker Mahindra & Mahindra (M&M) will offload 28.06 lakh shares of the company.

While the share price details are yet to be revealed, FirstCry was eyeing a valuation of about $3.5-3.75 billion for its IPO, slightly higher than $3 billion that it commanded during its last private fundraise, Moneycontrol reported.