Wednesday, November 13, 2024
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Indian retailer FirstCry is preparing to launch an initial public offering (IPO) with the aim of raising up to $501 million. According to a term sheet reviewed by Reuters, this IPO will value the company at up to $2.9 billion.

FirstCry, a leading provider of baby products such as clothing, diapers, and toys, is positioning itself to capture a significant share of the market for new parents in India, the world’s most populous country. The company competes with online kids’ retailers like Hopscotch and, in certain segments, with established domestic players such as Shoppers Stop (SHOP.NS) and Myntra, which is owned by Flipkart.

As part of the IPO, FirstCry will issue new shares worth $199 million. Additionally, existing investors, including prominent names like SoftBank (9434.T), TPG (TPG.O), and India’s Mahindra & Mahindra (MAHM.NS), are set to sell shares worth a combined $302 million. The company is offering a 17% stake to the public, with a price band set between 440 rupees and 465 rupees per share.

The funds raised from this IPO are planned to be allocated towards various growth initiatives. Specifically, FirstCry intends to use the proceeds to fund strategic acquisitions, expand its international presence, and establish new stores and warehouses across India.

FirstCry has not yet responded to requests for comment from Reuters regarding the IPO.

The book-running lead managers for the offering include BofA Securities India, Morgan Stanley India, Kotak Mahindra Capital, JM Financial, and Avendus Capital.

This IPO comes amidst a bustling period for the Indian stock market, which has seen over 150 companies raise nearly $5 billion through public listings between January and July of this year. This amount is nearly double the total raised during the same period last year, according to data from LSEG.

Earlier this week, Indian e-scooter manufacturer Ola Electric also announced its plans to raise $734 million, marking it as the largest IPO in India for the year.

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