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Indian baby items store FirstCry raised $501 million after a slow start. The IPO raised $3.36 billion on Thursday as investors bet on infant and kid product development in the world’s most populous country.
FirstCry, sponsored by SoftBank TPG and Mahindra & Mahindra got offers for 606.4 million shares, 12 times the shares on offer, exchange data showed. Thursday’s issue was unsubscribed until midday.
The institutional investor part of the IPO, comprising foreign investors, banks, and mutual funds, was oversubscribed 19.3 times, while individual investors bid 2.3 times.
Abu Dhabi Investment Authority Singapore, and Fidelity Funds bought 18.86 billion rupees in shares before the bidding date.
FirstCry is India’s first pure-play baby items and childcare retailer to go public.
Shoppers and Walmart-owned Myntra Flipkart, to compete with it.
Kranthi Bathini, director of equity strategy at Wealth Mills Securities, said the child care industry in the world’s most populous country is attractive and the company benefits from it.
Deliveroo shares rose Thursday. This comes after the British food delivery company reported positive net profit and free cash flow in the first half of the year.
Bathini said FirstCry’s premium items will help businesses grow as disposable income in India rises.
FirstCry tried to capitalize on the country’s stock market, which has reached record highs 50 times this year. The share sale followed the IPOs of Ola Electric, Allied Blenders and Emcure Pharmaceuticals.
The money will be used for acquisitions, international expansion, and new Indian stores and warehouses.
The company applied for its public float in December 2023 but withdrew it earlier this year after the country’s market authority raised concerns about key data it presented to investors.
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