Supam Maheshwari, the co-founder and CEO of the pioneering mother and baby care e-commerce platform FirstCry, has experienced a considerable slash in his monthly earnings, according to the latest company filings. Maheshwari’s compensation, which previously stood at a striking Rs 16.7 crore per month for the first three quarters of the fiscal year 2023, has now diminished by almost half, resting at Rs 8.6 crore per month for the corresponding period in fiscal year 2024.
This reduction is illuminated in FirstCry’s amended Draft Red Herring Prospectus (DRHP), recently refiled with the Securities and Exchange Board of India (SEBI) as the company prepares to make a splash in the stock market with an Initial Public Offer (IPO) aimed at raising Rs 1,816 crore through the sale of fresh shares.
An analysis of the DRHP uncovers that Maheshwari’s total remuneration – encompassing a myriad of compensation forms such as short-term employment benefits, stock options, and other long-term employment benefits – plummeted to Rs 77.5 crore over the first three quarters of FY24 from a staggering Rs 200.7 crore over FY23.
Joining Maheshwari in the reduction of compensation is Sanket Hattimattur, another co-founder and the Chief of Staff at FirstCry, whose remuneration took a downturn to the tune of Rs 8.3 crore during the initial nine months of FY24, compared to Rs 18.5 crore over the same months of the prior fiscal year. Further illustrating this trend is the remuneration of the company’s Chief Financial Officer, Gautam Sharma, who saw his remuneration dip from Rs 4.8 crore in FY23 to just Rs 1.6 crore during the first three quarters of FY24.
The reshuffling of executive pay comes alongside significant pre-IPO corporate maneuvers by Maheshwari, with reports in January revealing that he had divested 6.2 million shares worth an approximate Rs 300 crore ahead of the company’s IPO filing. Further detail emerged from an earlier DRHP, filed in December of the previous year, which showed Maheshwari had parted ways with 9.34 million shares during the six months leading up to the IPO documentation date.
FirstCry’s impending IPO is poised as a pivotal moment for the firm, which has rapidly grown into a leading force within the territory of online retail for baby care products and accessories. The refiled prospectus and ensuing share offering symbolize a leap forward in the company’s growth trajectory and an opportunity for investors to partake in its expanding market presence.
The changes in executive payment structures disclosed by the DRHP could be a move to align company leadership’s compensation with the expectations and norms of the public markets and shareholders, as well as a reflection of an evolving corporate governance model befit for a publicly traded entity.
Apart from the financial adjustments in executive compensation and share dealings by Maheshwari, these filings ahead of the IPO offer a rare glimpse into the inner workings of FirstCry’s financial and ownership structure. The company, which has undoubtedly disrupted the traditional retail market for mother and child care products in India, is now steering towards a new chapter, presumably with the same innovative ethos that has been instrumental in its success to date.
As FirstCry marches towards its public market debut, investors and market observers alike will keep a keen eye on how the company’s story unfolds, and how its leadership compensations will evolve in response to the scrupulous eye of public ownership.
