Early investors to gain big as FirstCry and Ola Electric go public
investors who took positions in FirstCry, Ola Electric and Unicommerce at the right time, with their investments set to become multibaggers when these new-economy startups go public next week.
Investors such as SoftBank, Tiger Global, Mahindra & Mahindra and Matrix Partners India will see the value of their holdings in these firms surge anywhere between three times to ten times as they hit the public markets, according to calculations made by ET basis information available in the IPO prospectuses of these companies.
For example, at the upper end of the IPO price band announced by omnichannel baby products retailer FirstCry at ₹465, SoftBank will clock gains of more than 3x based on its weighted average cost of acquisition per equity share of ₹154.40 while M&M will see a nearly 6x gain on its cost of acquisition per share.
In the case of electric vehicle maker Ola Electric, early backers Tiger Global and Matrix Partners India are set to clock gains of more than 6x and nearly 10x, respectively.
SoftBank may also clock an over threefold gain from ecommerce enablement software firm Unicommerce, which is valued at ₹1,100 crore at the upper end of the price band for the IPO.
In the offer for sale (OFS) portion of FirstCry IPO, SoftBank is offloading stake worth ₹944 crore, and post the offering, will hold shares worth ₹4,825 crore. This does not account for any potential post-listing gains or losses.
M&M, which first entered FirstCry's capitalisation table in 2016, is selling stake worth over Rs 130 crore and will
