Ratan Tata to Fully Divest Stake in FirstCry Parent Company Ahead of IPO

Former Tata Group Chairman to Sell Entire Stake in Brainbees Solutions Ltd, Parent Company of FirstCry

Veteran industrialist and former Tata Group Chairman, Ratan Tata, is set to divest his entire stake in Brainbees Solutions Ltd, the parent company of the popular omnichannel baby and mother-care product platform, FirstCry. Tata initially invested in the company in 2016, infusing Rs 66 lakh and acquiring preference shares.

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According to the draft red herring prospectus (DRHP) filed on Thursday, Ratan Tata intends to offer for sale all of his 77,900 shares, representing a 0.02 per cent stake in FirstCry. This strategic move comes as Brainbees Solutions Ltd gears up for its highly anticipated Initial Public Offering (IPO).

The FirstCry IPO is expected to include a fresh issue of equity shares, amounting to up to Rs 1,816 crore, and an Offer For Sale (OFS) of up to 5.44 crore equity shares by existing shareholders, as detailed in the draft papers.

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Among the other major stakeholders participating in the OFS are SVF Frog, a Cayman Islands-registered entity of Softbank, which plans to sell 2.03 crore equity shares of Brainbees Solutions Ltd. Additionally, automaker Mahindra & Mahindra (M&M) is looking to offload 28.06 lakh shares of the company.

A diverse group of investors is also contributing to the OFS, including PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, Valiant Mauritius, TIMF Holdings, Think India Opportunities Fund, and Schroders Capital.

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The move by Ratan Tata to divest his shares in FirstCry ahead of the IPO reflects the dynamic nature of India’s investment landscape and highlights the growing interest in the retail sector, particularly in the baby and mother-care segment.

FirstCry has established itself as a prominent player in the Indian market, offering a wide range of products and services for parents and infants, both online and through physical stores. With the IPO on the horizon, investors and industry observers are closely watching the developments and anticipating a significant milestone for the company.

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The IPO is expected to provide a valuable opportunity for investors to participate in the growth story of FirstCry and Brainbees Solutions Ltd as they continue to expand their presence in the competitive Indian e-commerce market.

FirstCry IPO

Disclaimer: The information provided is based on the draft red herring prospectus (DRHP) and may be subject to change as the IPO process progresses.

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