TPG completed its full exit from FirstCry, selling its remaining 2.21% stake for ₹202 Cr. This comes as FirstCry's stock is down 37.4% YTD while still reporting losses. Goldman Sachs acquired 68 lakh shares from the bulk deal.
How We Got Here
TPG first invested in FirstCry in 2021 and has been steadily diluting its stake since the company's 2024 IPO. The kids wear platform trimmed its Q1 FY27 net losses by 35% to ₹44 Cr, despite high operating costs.
The Numbers
- TPG sold its shares at ₹175.15 each, a 2.4% discount to FirstCry's closing price on Thursday.
- FirstCry’s operating revenue grew 13% YoY to ₹2,106.2 Cr in Q1 FY27.
- FirstCry's contract manufacturing subsidiary, Swara Baby Products, filed its DRHP for a ₹1,000 Cr IPO.
- Swara Baby Products’ upcoming IPO includes a ₹500 Cr fresh issue and a ₹500 Cr offer-for-sale component.
What Happens Next
🇮🇳 Why This Matters for India
For founders in Bangalore's D2C or consumer tech space, this exit highlights the challenge of public market valuations even for established brands seeking profitability.
The Take
TPG's exit signals a smart move to de-risk while the stock had a small bounce. The real story remains FirstCry's uphill battle to prove consistent profitability to public market investors, even with a subsidiary IPO on the horizon.
Source:
Inc42 ↗