FirstCry IPO Date, Price, GMP, and Review

FirstCry IPO: FirstCry submitted its Draft Red Herring Prospectus (DRHP) to the SEBI on December 28, 2023, showing its intention to raise funds through IPO.

At the Bottom, I have explained What is DRHP.

This move indicates the first new-age e-commerce company to follow Nykaa’s footsteps, which went public in 2021.

At a price of ₹487.44 per share, marking the highest rate for a secondary share sale in December, Maheshwari’s divested shares would amount to a valuation exceeding ₹300 crore. The CEO of FirstCry has included himself as a selling shareholder in the upcoming public issue.

While Maheshwari originally possessed 35,097,831 shares, equivalent to a 7.46 percent stake in the company, until the draft papers were filed, his ownership had diminished to 28,893,347 shares, representing a 5.95 percent stake on the application filing date.

The DRHP indicates that Maheshwari divested 9.34 million shares in the six months following the DRHP filing date. At a price of ₹487.44 per share, this transaction would amount to a value exceeding ₹455 crore.

FirstCry IPO Latest News

Note: Share price and total IPO size are yet to be disclosed, as per the news FirstCry is likely to raise $500 million with a valuation ranging between $3.5 billion to $3.75 billion.

FirstCry IPO is expected to be launched by the end of March 2024.

Crucial details like IPO Date, Price, and Lot Size are yet to be announced.

What is Draft Red Herring Prospectus (DRHP)

A Draft Red Herring Prospectus (DRHP) is a preliminary version of the prospectus that is filed with the SEBI by a company intending to go public through an initial public offering (IPO).

The term “red herring” indicates that the prospectus contains all the necessary information about the company and the IPO, except for the specific details regarding the price and number of shares offered.

The DRHP provides potential investors with insights into various aspects of the company, including its business model, financial performance, management team, industry outlook, risks involved, and proposed use of funds.

It serves as a crucial document for investors to evaluate the investment opportunity in that stock.

Before the company proceeds to an IPO, SEBI reviews the DRHP to ensure compliance with the relevant regulations and to safeguard the interests of investors.

Once the company gets approved, it proceeds to launch the IPO, and a final version of the prospectus, known as the Red Herring Prospectus (RHP), is issued to the public, containing the pricing, Size, and other specific details of the IPO.