Rekha Jhunjhunwala-backed Baazar Style Retail likely to launch IPO this week

Rekha Jhunjhunwala-backed Baazar Style Retail likely to launch IPO this week

Rekha Jhunjhunwala-backed Baazar Style Retail (Style Baazar) is expected to launch its initial public offering (IPO) this week, sources close to the development told Moneycontrol.

In March, the Kolkata-based value fashion retailer had filed its draft red herring prospectus (DRHP). According to the DRHP, the proposed IPO comprises a fresh issue of equity shares worth Rs 185 crore and an offer for sale (OFS) of up to 1.68 crore shares by promoter group entities and other selling shareholders. The offer also includes a reservation for subscriptions by eligible employees.

Under the OFS, Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares, Intensive Softshare Private Limited will offload 22.40 lakh shares, and Intensive Finance Private Limited will divest 14.87 lakh shares, among others.

The proceeds from the fresh issue, amounting to Rs 135 crore, will be used to pay down debt and for general corporate purposes.

Earlier, on August 5, Baazar Style Retail raised Rs 37 crore in a pre-IPO placement from institutional investors, including Volrado Ventures Partners Fund II. The company undertook a private placement of 9,56,072 shares at Rs 387 per share. The DRHP has received approval from SEBI.

Baazar Style Retail is one of the leading players in the value retail market in West Bengal and Odisha, with a presence of 153 stores spread across over 1.39 million square feet in 140 cities across 9 states as of December 31, 2023. According to the DRHP, the company reported revenue from operations of Rs 787.9 crore in FY23, with a profit after tax (PAT) of Rs 5.4 crore.

Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers, while Link Intime India is the registrar for the issue.

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