Supam Maheshwari, the Co-Founder and CEO of the mother and child care e-commerce platform FirstCry, has reportedly divested 6.2 million shares ahead of the company's impending initial public offering (IPO). This transaction, as per a MoneyControl report, is estimated to value Maheshwari's offloaded shareholding at over Rs 300 crore.
The CEO has also positioned himself as a selling shareholder in the public issue, as detailed in the company's Draft Red-Herring Prospectus (DRHP). Initially holding a 7.46% stake in the company, Maheshwari's ownership decreased to 5.95% after the submission of the draft IPO papers.
The DRHP indicates that Maheshwari has sold 9.34 million shares in the six months leading up to the IPO filing. At the reported price of Rs 487.44 per share, this share transfer is assessed at over Rs 455 crore. As of the report, FirstCry had yet to provide an official response.
Earlier reports mention that Japanese investment powerhouse SoftBank had divested shares worth $310 million in two rounds from its stake in FirstCry.
In recent developments, FirstCry filed its DRHP with the market regulator SEBI, aiming to raise Rs 1,816 crore through a fresh issue of shares. The parent company, BrainBees Solutions, submitted the DRHP, encompassing an offer-for-sale (OFS) of 5.4 crore equity shares.
The intended utilization of the IPO funds by FirstCry is directed towards establishing modern retail stores and warehouses across the nation.
Regarding financial performance, the company reported revenue from operations amounting to Rs 5,632 crore in FY23. However, its losses surged significantly, reaching Rs 486 crore, which marks a substantial increase from Rs 79 crore in FY22.
(With Agency Inputs)
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