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Sachin Tendulkar, Ranjan Pai, and other investors who bought FirstCry shares last year will face losses of up to 10% due to the IPO price band.
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Ratan Tata, who holds 77,900 shares, is expected to gain over 5X on his investment.
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FirstCry’s IPO consists of a fresh issue of Rs 1,666 crore and an offer for sale valued at Rs 2,527.72 crore.
The Initial Public Offering (IPO) of FirstCry, an e-commerce unicorn, has revealed that some prominent investors, including Sachin Tendulkar and Ranjan Pai, will face losses of up to 10% on their investments. This is because the IPO price band of Rs 440-465 per share is lower than their buying price of Rs 487.44 per share. However, these investors are not selling their shares in the IPO.
On the other hand, Ratan Tata, who holds 77,900 shares, is expected to gain over 5X on his investment. He had bought the shares at an average price of Rs 84.72. Mahindra & Mahindra Limited, which owns 11% of FirstCry, will also see an almost 6X jump in the value of its holdings. The company’s founder, Supam Maheshwari, had sold shares worth Rs 300 crore in a pre-IPO round last year.
FirstCry’s IPO consists of a fresh issue of Rs 1,666 crore and an offer for sale valued at Rs 2,527.72 crore. The company had filed its draft IPO papers with SEBI last December but withdrew them after the regulator sought more clarity on key performance indicators. The company has since provided more clarity on its financials, reporting a revenue of Rs 6,480.86 crore in FY24, up 15% from the previous fiscal.