TPG exits FirstCry with Rs 202 crore stake sale
What's the deal? Private equity firm TPG has sold its entire 2.21% stake in omnichannel kidswear company FirstCry for Rs 202 crore through a bulk deal. It sold 1.2 crore shares at Rs 175.15 apiece via its entity NewQuest Asia Investments IIIDealroom has a profile for this one. Try Dealroom →, according to NSE data.
Who bought in? Goldman Sachs Investments MauritiusDealroom has a profile for this one. Try Dealroom → picked up 68 lakh shares at Rs 175 each, worth around Rs 119 crore. The buyers of the remaining shares were not disclosed.
Why now? TPG first invested in FirstCry in 2021 and has trimmed its holding since the company's 2024 IPO. It sold the shares at a discount of about 2.4% to the previous close, exiting while the stock remains under pressure.
What's the picture? FirstCry shares have gained 6.13% over the past week but are down 37.4% year-to-date. The stock closed 0.66% lower at Rs 179.40 on the BSE on Thursday.
Under the hood: FirstCry continues to report losses as it spends on core categories and its supply chain, but its unit economics are improving. Net loss narrowed 35% to Rs 44 crore in Q1 FY27, from Rs 66.5 crore a year earlier, while operating revenue rose 13% to Rs 2,106.2 crore.
What's next? FirstCry subsidiary and contract manufacturer Swara Baby Products has filed its draft prospectus with the Securities and Exchange Board of India for a Rs 1,000 crore IPO. The issue comprises a fresh issue of up to Rs 500 crore and an offer-for-sale of up to Rs 500 crore.
The signal: TPG's clean exit adds to a run of investors offloading stakes in newly listed Indian startups, testing how much appetite remains for loss-making consumer names still working toward profitability.
Read more: bwdisrupt.com
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