As the dust settles around FirstCry's much-anticipated IPO, a surprising twist emerges. Indian cricket legend Sachin Tendulkar, along with Manipal Group’s Ranjan Pai and others, find themselves facing unexpected losses. But in this sea of red, one name stands out as a big winner—Ratan Tata.
Ratan Tata, the former chairman of Tata Sons, holds 77,900 shares in FirstCry, purchased at an average price of Rs 84.72. With the IPO price band set at Rs 440-465 apiece, Tata is looking at more than a 5X gain, a remarkable feat in these turbulent market conditions. Meanwhile, Mahindra & Mahindra Limited also stands to gain significantly, with an almost 6X jump in the value of its holdings, having bought shares at Rs 77.96 each.
On the other side of the spectrum, Tendulkar and his wife Anjali, who acquired over 2 lakh shares last year, along with Harsh Mariwala’s Sharrp Ventures, Ranjan Pai’s family office, and others, are staring at a potential loss of up to 10 percent. They bought in at Rs 487.44 per share, higher than the IPO price band, leading to these paper losses. Yet, despite this dip, these investors are not selling their shares in the IPO, indicating a long-term belief in the company’s prospects.
Interestingly, the losses are primarily affecting those who bought shares during a specific round last year. In contrast, earlier investors like Premji Invest, who acquired shares at Rs 280.87 apiece, are still poised to profit. Premji Invest's vehicle is selling 86 lakh shares, ensuring a gain of at least 57 percent.
The IPO, comprising a fresh issue of Rs 1,666 crore and an offer for sale valued at Rs 2,527.72 crore, totals Rs 4,187.72 crore, setting FirstCry's market cap at Rs 22,475 crore ($2.68 billion). Initially filed in December, the IPO faced delays as the Securities and Exchange Board of India (SEBI) sought clarity on several key performance indicators. After addressing these concerns, FirstCry refiled its papers, revealing a 15 percent increase in revenue to Rs 6,480.86 crore for FY24, despite a reduced loss of Rs 321.51 crore compared to Rs 486 crore in FY23.
As FirstCry steps into the public market, the outcomes for its diverse group of investors vary dramatically, reflecting the complex nature of investing in emerging markets.
