FirstCry’s parent Brainbees Solutions receives Sebi approval for IPO, ET Retail

New Delhi: Brainbees Solutions Ltd, the parent company of e-commerce platform FirstCry, has received Sebi’s approval to raise funds through an initial public offering (IPO), according to an update from the market regulator on Monday. Apart from this, three other companies — SaaS platform Unicommerce eSolutions, Maharashtra-based Gala Precision Engineering and Interarch Building Products — have also received the regulator’s approval to conduct their initial share sale. These companies — which had filed their initial IPO documents with Sebi between January and May 2024 — received the regulator’s comments between June 25 and 28, as per the update.

In Sebi’s jargon, getting his comments means agreeing to raise a public issue.

As per the fresh draft red herring prospectus (DRHP), the proposed public offering of Pune-based Brainbees Solutions is a combination of fresh issue of shares aggregating up to Rs 1,816 crore and an offer for sale (OFS) of up to 5.44 crore shares by existing shareholders.

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Under the OFS, SVF Frog, a Softbank entity incorporated in the Cayman Islands, will sell 2.03 crore equity shares of Brainbees Solutions Ltd and automaker Mahindra & Mahindra (M&M) will sell 28.06 lakh equity shares of the company.

Currently, Softbank holds 25.55 percent. shares in Brainbees Solutions, and M&M owns 10.98 percent. shares in this multi-brand retail platform.

Apart from Softbank and M&M, other sellers of OFS shares include PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, Valiant Mauritius, TIMF Holdings, Think India Opportunities Fund and Schroders Capital.

Brainbees Solutions re-filed its initial Sebi documents in May after the regulator ordered the company to re-file its draft documents, citing insufficient disclosure of key performance indicators (KPIs), market sources said.

The company’s key performance indicators include the number of orders, average order value and annual number of customers transacting business.

The Unicommerce issue is an entirely offer for sale (OFS) comprising up to 2.98 crore equity shares by the selling shareholders.

Under OFS, SB Investment Holdings (UK) Ltd, a subsidiary of Japan’s SoftBank, will sell 1.61 crore shares, promoter AceVector Limited (formerly known as Snapdeal Limited) will sell up to 1.14 crore shares and B2 Capital Partners will sell up to 22 million shares.

Since the IPO is entirely an OFS, all proceeds will go to the selling shareholders.

The shares of these four companies will be listed on the BSE and NSE.

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