FirstCry's parent Brainbees Solutions sets Rs 440-465 per share price band for Rs 4,194-cr IPO

New Delhi: Online e-commerce platform FirstCry's parent, Brainbees Solutions on Thursday fixed a price band of Rs 440-465 a share for its Rs 4,194 crore Initial Public Offering (IPO).

The initial share sale will open for public subscription on August 6 and close on August 8 and the bidding for the anchor portion will open for a day on August 5, the company announced.

The public issue of Pune-based Brainbees Solutions consists of a fresh issue of equity shares valued at Rs 1,666 crore and an OFS (Offer For Sale) component of up to 5.44 crore shares worth Rs 2,528 crore by existing shareholders. This takes the total issue size to Rs 4,194 crore.

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

Currently, Softbank holds a 25.55% stake in Brainbees Solutions, and M&M owns a 10.98% stake in the multi-brand retailing platform.

Apart from Softbank and M&M, other selling shares in the OFS are PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, and Schroders Capital. Further, individuals selling shareholders include industrialist Ratan Tata.

The company will use net proceeds from the fresh issue for setting up new modern stores under the brand 'BabyHug', investment in the subsidiary, overseas expansion, as well as sales and marketing initiatives, besides, a portion will be used for corporate general purposes.

Brokerage houses have pegged the company's market capitalisation to Rs 24,142 crore post-issue.

The company said that 75% of the issue size has been reserved for qualified institutional buyers, 35% for non-institutional investors and the remaining 10% for retail investors. Investors can bid for a minimum of 32 equity shares and in multiples thereof.

Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, JM Financial and Avendus Capital are the book running lead managers to the issue.