Billionaire business tycoon Ratan Tata is poised to achieve impressive returns of 448.9%, translating to a substantial profit of ₹2.96 crore from the initial public offering (firstCry IPO) of the kidswear startup FirstCry.
Billionaire business tycoon Ratan Tata is set to achieve impressive returns of 448.9%, equating to a significant profit of ₹2.96 crore, from the initial public offering (IPO) of the kidswear startup FirstCry. At the upper price band of ₹465, Tata’s ₹66 lakh investment would grow to approximately ₹3.62 crore when the ₹4,194 crore IPO opens for public subscription next week.
The 86-year-old Tata, who acquired a 0.02% stake in the SoftBank and Premji Invest-backed company for ₹66 lakh in 2016, plans to sell all 77,900 shares he holds in the IPO.
As Tata prepares to sell all 77,900 shares, his average acquisition cost of ₹84.72 per share highlights the substantial gains from this investment. Tata, renowned as the former chairman of Tata Group and an angel investor in startups such as Lenskart and Paytm, contrasts sharply with Sachin Tendulkar and other investors who are experiencing declines in their holdings.
Tendulkar’s ₹10 crore investment, made at ₹487.44 per share, is now valued at approximately ₹9.5 crore, reflecting a 5% loss. The FirstCry IPO, which includes a ₹1,666 crore fresh issue and an offer for sale of up to 5.4 crore shares, is scheduled to open for public subscription from August 6 to August 8, with the listing expected on August 13. For fiscal year 2024, FirstCry reported a 15% increase in revenue, reaching ₹6,481 crore, and a 34% reduction in losses to ₹321 crore. Major shareholders, including Mahindra & Mahindra, SoftBank, and FirstCry Co-Founder Supam Maheshwari, will also be selling shares in the IPO.
Ratan Tata’s Stake in FirstCry
The prominent business tycoon acquired a 0.02% stake in the SoftBank and Premji Invest-backed company for ₹66 lakh in 2016. According to the Red Herring Prospectus (RHP) filed with SEBI by Brainbees Solutions, Tata has now decided to sell all 77,900 of his shares in the upcoming IPO.
FirstCry IPO Gains for Ratan Tata
With the IPO price band set by the kidswear company, the 86-year-old Tata is poised to achieve remarkable returns of nearly 450%. This equates to a profit of approximately ₹2.96 crore for Tata. If the company’s shares list at the upper end of the price band, ₹465, the value of Tata’s ₹66 lakh investment would increase to about ₹3.62 crore.
FirstCry IPO Grey Market Premium (GMP)
In the grey market, FirstCry shares are commanding a strong premium, suggesting substantial listing gains for investors. According to grey market tracking websites, shares of Brainbees Solutions have a GMP of ₹97, indicating a potential listing price of ₹562, which represents a 20.86% premium.
FirstCry IPO Schedule
- Subscription Dates: The IPO will open for public subscription from August 6 and close on August 8.
- Listing Date: Shares of the kidswear company are expected to be listed on August 13.
- Price Band: The company has set the price band for the shares at ₹440-465.
IPO Size: The public offering includes a fresh issue of ₹1,666 crore and an offer for sale (OFS) of up to 5.4 crore shares by existing shareholders, including Mahindra & Mahindra and SoftBank.
You might also be interested in – FirstCry IPO Valuation at $2.9 Billion: Details on Price Band, Dates, and More
