Brainbees Solutions Ltd, the parent company of online e-commerce platform FirstCry, has received approval from the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO). This information was updated by the markets regulator on Monday.
In addition to Brainbees Solutions, three other companies have received Sebi’s nod to launch their IPOs. These companies are SaaS platform Unicommerce eSolutions, Maharashtra-based Gala Precision Engineering, and Interarch Building Products. These companies submitted their initial IPO documents to Sebi between January and May 2024 and received the regulator’s observations between June 25 and June 28. In Sebi’s terms, obtaining observations means the approval to go ahead with the public issue.
According to the new draft red herring prospectus (DRHP), Pune-based Brainbees Solutions’ proposed IPO will include a fresh issue of equity shares worth up to Rs 1,816 crore and an offer for sale (OFS) of up to 5.44 crore equity shares by existing shareholders.
Under the OFS, SVF Frog, a Cayman Islands-registered entity of Softbank, will sell 2.03 crore equity shares of Brainbees Solutions Ltd, 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, while M&M owns a 10.98% stake in the multi-brand retailing platform.
Other entities selling shares in the OFS include PI Opportunities Fund, TPG, NewQuest Asia Investments, Apricot Investments, Valiant Mauritius, TIMF Holdings, Think India Opportunities Fund, and Schroders Capital.
Brainbees Solutions had to re-file its preliminary papers with Sebi in May after being directed to do so by the regulator. This was due to insufficient disclosure of key performance indicators (KPIs), according to market sources. The company’s key performance indicators include the number of orders, average order value, and annual transacting customers.
This IPO is a significant step for Brainbees Solutions as it seeks to raise capital and expand its operations further. The approval from SEBI marks a crucial milestone in their journey towards becoming a publicly traded company.
