FirstCry Founder Supam Maheshwari Sells Over 62 Lakh Shares Ahead of DRHP Filing for INR 1,816 Cr IPO

Unraveling the Share Sell-Off: FirstCry Founder’s Pre-IPO Maneuver Raises Questions and Expectations

Introduction: In a strategic move just days before the filing of the Draft Red Herring Prospectus (DRHP) for its much-anticipated Initial Public Offering (IPO) of over INR 1,816 Crores, Supam Maheshwari, the founder and Managing Director of SoftBank-backed ecommerce unicorn FirstCry, offloaded more than 62 Lakh shares. This move has caught the attention of market observers, raising questions about the timing and implications of Maheshwari’s decision.

Key Details:

  1. Shares Sold: Supam Maheshwari divested over 62 Lakh shares in FirstCry shortly before the company filed its DRHP.
  2. Stake Reduction: The founder’s stake in the startup, as per the DRHP filing on December 27, 2023, is 5.95%, representing 2.89 Crore shares. Interestingly, just 10 days prior to the filing, Maheshwari’s stake was at 7.46%, amounting to over 3.5 Crore shares.

Timing and Strategy: The timing of Maheshwari’s share offload raises eyebrows, given the proximity to the DRHP filing. Investors and market analysts will likely scrutinize the reasons behind this strategic move. Such decisions are often perceived as signals, prompting speculation about the founder’s confidence in the company’s IPO or potential market conditions.

Potential Implications: While founder share sales before an IPO are not uncommon, they can carry various implications. It is essential to understand Maheshwari’s motivation behind the sell-off and whether it reflects a personal financial strategy, a response to market conditions, or other undisclosed factors.

Market Reaction: The offloading of shares by a prominent figure like Supam Maheshwari may influence market sentiment and investor perception. Traders and investors are likely to closely monitor FirstCry’s stock movements and overall market response following this development.


The recent share sale by Supam Maheshwari adds an intriguing layer to the unfolding narrative of FirstCry’s IPO journey. As the IPO landscape evolves, market participants will be keenly watching for further developments and announcements that may shed light on the motivations behind this strategic move and its potential impact on FirstCry’s market debut.

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