FirstCry’s top executives, investors likely to win big with IPO

livemint.com:

Mint showed. The price band of Brainbees Solutions Ltd, which runs an omnichannel children's clothing enterprises under the FirstCry brand, has been fixed in the range of ₹440 to ₹465 per equity share of the face value of ₹2. The company has sought a value of $2.9 billion and the IPO comprises a fresh issue of ₹1,666 crore, and an offer-for-sale (OFS) of up to 54 million shares.

FirstCry’s top executives are sitting on a stockpile value of ₹2,227 crore of which the founding team comprising Supam Maheshwari (CEO), Amitava Saha (former COO), Sanket Hattimtatur (chief of staff) and Prashant Jadhav (CTO) alone are worth ₹2,127 crore. The values have been calculated based on the lower end of the price band. The rest of the executives were granted stock options over the years, through the company’s employee stock ownership plan (Esop) policy.

FirstCry has a vesting period of 4 years with an exercise life of 10 years. Senior employees such as Ajoy Kumar Kar (VP operations) will make ₹4.5 crore, Amitabh Sadasiv (store operations manager) ₹1.32 crore, Anirudh Chaturvedi (CPO) ₹14.93 crore. Arpit Agarwal (VP - Merchandising), Megha Arora (AVP – home brands & imports) and Shwetank Gupta (VP - Stockists Business ) cumulatively are sitting on a stock pile worth ₹8.89 crore.

Several investors including Mahindra & Mahindra Ltd, Schroders Capital, NewQuest and SVF Frog (Cayman) Ltd are expected to make windfall gains from the IPO. Mahindra’s average cost of acquiring FirstCry’s shares was ₹77.96 and Schroders’ ₹145.26. NewQuest and SVF’s average acquisition cost was ₹133.69 and ₹154.40 apiece, respectively.