TPG exits FirstCry stake in ₹202 crore bulk deal

Private equity giant TPG has exited its investment in FirstCry, an omnichannel children's wear retailer, through a bulk deal worth ₹202 crore. The sale represents TPG's full divestment from the company.

According to NSE data, TPG, via its entity NewQuest Asia Investments III Ltd, sold its entire 2.21% shareholding, comprising 1.2 crore shares, at ₹175.15 per share. Goldman Sachs Investments Mauritius was a significant buyer, acquiring 68 lakh shares for approximately ₹119 crore. The identities of the purchasers of the remaining shares were not immediately clear.

TPG first invested in FirstCry in 2021 and has been gradually reducing its stake since the company's IPO in 2024. The exit occurs amidst a period of stock price pressure for FirstCry, despite a recent weekly gain. TPG likely capitalized on this short-term surge to realize its investment gains.

FirstCry continues to operate at a loss, investing heavily to counter competition and address supply chain costs. However, the company has reported a 35% reduction in net losses for the first quarter compared to the previous year, with operating revenue increasing by 13%.