New Delhi, December 26: Japanese investment giant SoftBank has reportedly sold its shares worth $310 million in the IPO-bound mother and child care e-commerce platform FirstCry, signaling significant shifts in the market, according to sources. The stock sale comes ahead of FirstCry’s plan to file a draft paper for its initial public offering (IPO) this week. SoftBank sold approximately Rs 630 crore worth of shares this time, making it a total of $310 million in two rounds. In a previous report, it was stated that FirstCry aims to raise $500 million, with 60 percent allocated for the offer for sale (OFS) component and the remainder for the primary segment.
FirstCry is expected to list its shares after the 2024 general elections. Meanwhile, Ola Electric, another SoftBank-backed company, is also in the process of raising approximately Rs 5,800 crore through its IPO. SoftBank had previously raised the valuations of both FirstCry and Ola Electric, indicating its optimism about their future prospects.
Earlier this month, SoftBank was also involved in a block deal where shares worth $135 million in food delivery platform Zomato were sold. The Japanese investment giant was identified as the likely seller in that transaction as well.
The developments surrounding SoftBank’s sale of shares in FirstCry and other companies highlight the changing dynamics within the market. The reported IPO plans of FirstCry and Ola Electric signify their ambitions to expand and secure further investments to support their growth.
The actions of SoftBank, a major player in the global investment landscape, often serve as indicators of market trends and investor sentiment. The company’s decision to sell its shares in FirstCry suggests a potential shift in its investment strategy and priorities.
The IPO-bound ventures, FirstCry and Ola Electric, represent the increasing influence of the e-commerce and electric mobility sectors in the business landscape. These industries have gained significant traction in recent years and are expected to continue growing as technology and consumer preferences evolve.
While SoftBank’s stock sale may raise questions about the future prospects of FirstCry, it should be noted that the IPO is still on track, aiming to attract substantial investment. The market response to FirstCry’s IPO, as well as that of Ola Electric, will likely be closely watched by industry observers and investors alike.
Overall, SoftBank’s sale of shares in FirstCry and its other portfolio companies indicates a potential shift in investment strategies and highlights the evolving landscape of the e-commerce and electric mobility sectors. As these companies prepare for their respective IPOs, all eyes will be on their performances in the market and the impact they have on investor sentiment.
