Sebi approves IPO plans of FirstCry, SoftBank-backed Unicommerce eSolutions

While FirstCry had refiled its DRHP, Unicommerce classified more entities as promoters for IPO approval

The Securities and Exchange Board of India (Sebi) has given the nod to initial public offers (IPOs) of SoftBank-backed Unicommerce eSolutions, FirstCry parent Brainbees Solutions, Interarch Building Products, and Gala Precision Engineering.

E-commerce-focused IT firm Unicommerce, founded by Snapdeal founders Kunal Bahl and Rohit Bansal, had filed the application with the market regulator in January. However, for a smoother approval process, its board on May 29 decided to identify Starfish (a SoftBank entity) as one of the promoters along with Bahl and Bansal.

Though Starfish does not hold any direct shares in Unicommerce, it is the largest shareholder of AceVector (earlier known as Snapdeal) with a 35.4 per cent stake.

In order to protect its executives from future liabilities arising out of the responsibilities of being deemed a promoter, SoftBank entered an indemnity agreement with the Snapdeal founders.

Though the regulator has given the nod, sources said that it is examining the applicability of such indemnity plans.

Unicommerce’s IPO consists only of an offer for sale with the entire proceeds going to the selling shareholders.

Pune-based Brainbees Solutions, the parent firm of retailer FirstCry, had refiled its draft red herring prospectus (DRHP) in May after the market regulator raised questions on key performance metrics.

The unicorn plans to raise over Rs 1,800 crore with an offer for sale of more than 54 million equity shares from the existing investors.

Noida-based Interarch Building plans to raise around Rs 200 crore from a fresh issue and will be tendering around 4.45 million shares in the offer for sale (OFS).

Gala Precision’s IPO consists of a fresh issue of up to 2.5 million equity shares and an OFS of 0.6 million equity shares. The proceeds from the fresh issue, to the extent of Rs 37 crore, will be used for setting up a new manufacturing facility while Rs 30 crore will be used for repayment/prepayment of certain borrowings.