The SEBI has approved the IPO proposals of two SoftBank portfolio firms: omnichannel baby products retailer FirstCry and e-commerce enterprise software developer Unicommerce.
FirstCry’s IPO plans
Sources said that its draft prospectus was refiled with SEBI on April 30 after addressing queries on its KPIs. Pune-based FirstCry sells mother care products and plans to mop up USD 218 million, about INR 1,815 crore, only through new shares. Promoter and existing investors will offload 54 million shares via OFS. Firstcry’s IPO may get listed in July, the latter part. It is estimated to be worth up to USD 500 mn, including primary and secondary sale of shares, amounting to INR 4,163 cr.
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Share Structure of Unicommerce IPO
Unicommerce, which filed draft papers with SEBI in January, will issue an IPO of an OFS by existing investors to mop up INR 480-490 crores. Existing investors, such as SoftBank, own 29.2 per cent of the company, while AceVector has 38.2 per cent, and B2 Capital is close to 10 per cent. Softbank is the biggest selling shareholder of Unicommerce, with a 15 per cent stake through an IPO offer of 16.2 million shares. AceVector sells 11.4 million for a 10 per cent stake, while B2 Capital offers 2.2 million shares, equivalent to 2 per cent.
Shareholders and Management
AceVector, with its founders Kunal Bahl and Rohit Bansal, has been the operator of Unicommerce, and SoftBank is its financial investor. In June, Unicommerce tagged SoftBank and Snapdeal co-founders Bahl and Bansal as promoters in an addendum filed to the draft prospectus. SoftBank has signed an indemnity agreement with Bahl and Bansal to protect itself and its executives from liabilities because it is considered a promoter of Unicommerce.
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Financial Performance
In the nine months ended December, FirstCry incurred a net loss of INR 278 crore on operating revenue of INR 4,814 crore. The company clocked gross sales of INR 5,650 crore during the period, with nearly 77% of total sales coming online and the rest from offline retail stores.
About the Author
Akshita Siddhapura is a Business Analytics student at SCMS-B, passionate about finance and research. She has a keen interest in financial analysis and strategic growth, showing a strong commitment to business and finance.
