Supam Maheshwari, the CEO and co-founder of FirstCry, a leading e-commerce platform specializing in mother and child care products, has reportedly divested a significant portion of his shares ahead of the company’s upcoming initial public offering (IPO). Here are the key details from the recent developments:

Share Offloading Details

According to a report by MoneyControl, Supam Maheshwari has offloaded approximately 6.2 million shares of FirstCry, amounting to over Rs 300 crore. This move comes in anticipation of the company’s IPO, indicating Maheshwari’s strategic financial planning ahead of the public offering.

Status in IPO

Maheshwari has listed himself as a selling shareholder in the company’s Draft Red-Herring Prospectus (DRHP), signaling his intention to sell a portion of his holdings during the IPO. His stake in FirstCry has reduced from 7.46% to 5.95% following the filing of the draft IPO papers.

Share Transfer Details

As per the DRHP, Maheshwari has divested a total of 9.34 million shares in the six months leading up to the filing of the IPO papers. Based on the reported share price of Rs 487.44 apiece, this share transfer amounts to over Rs 455 crore, as per the MoneyControl report.

Previous Share Sales

Earlier reports indicated that Japanese investment conglomerate SoftBank had sold shares worth $310 million in FirstCry across two rounds. This highlights significant investor interest and liquidity events leading up to the company’s IPO.

IPO Plans and Utilization of Funds

FirstCry recently filed its DRHP with the market regulator SEBI, aiming to raise Rs 1,816 crore through a fresh issue of shares. The IPO includes an offer-for-sale (OFS) component comprising 5.4 crore equity shares. The IPO proceeds will be utilized by FirstCry to expand its presence by establishing modern retail stores and warehouses across India.

Financial Performance

In terms of financials, FirstCry reported revenue from operations of Rs 5,632 crore in FY23. However, the company witnessed a significant increase in losses, which surged over six times from Rs 79 crore in FY22 to Rs 486 crore in FY23. Despite the increase in losses, the company’s robust revenue indicates its strong market position and growth potential in the e-commerce segment focused on mother and child care products.

As FirstCry prepares for its IPO journey, the divestment of shares by CEO Supam Maheshwari underscores strategic financial planning and investor confidence in the company’s future prospects.