Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail files draft IPO papers

Baazar Style Retail IPO: The offer for sale consists of the sale of equity shares of up to 27.2 lakh shares by Rekha Rakesh Jhunjhunwala

Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise funds from public.

The initial public offer (IPO) will be a mix of fresh shares of up to Rs 185 crore and an offer-of sale (OFS) of up to 1.68 crore by the promoter group and other selling shareholders.

On September 2022, Moneycontrol was the first to report the listing plans of the Kolkata-based value retail chain.

The OFS will consist of the sale of up to 27.2 lakh equity shares by Rekha Rakesh Jhunjhunwala, up to 22.4 lakh shares by Intensive Softshare, up to 14.9 lakh shares by Intensive Finance, up to 13.1 lakh shares by Chandurkar Investments, up to 9.19 lakh shares by Subroto Trading & Finance Company, up to 8.44 lakh shares by Rajnish Gupta, up to 6.64 lakh shares by Madhu Surana, up to 6.42 lakh shares by Sabita Agarwal, up to 6 lakh shares by Rekha Kedia, up to 6 lakh shares by Shakuntala Devi, up to 5.4 lakh shares by D.K Surana HUF.

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Upon the demise of the Big Bull, the late Rakesh Jhunjhunwala, the equity shares held by him were transmitted to Rekha Rakesh Jhunjhunwala as his nominee and wife.

Pradeep Kumar Agarwal, Rohit Kedia, Shreyans Surana, Bhagwan Prasad, Rajendra Kumar Gupta, Rajendra Kumar Gupta (HUF) and Sri Narsingh Infrastructure are promoters of the company.

The company may consider a further issue of specified securities through a private placement, rights issue, preferential offer, or any other method aggregating to Rs 37 crore as a ‘pre-IPO placement’. If such placement is completed, the fresh issue size will be reduced.

The net fresh issue proceeds worth Rs 135 crore will be utilised for prepayment or repayment of certain outstanding borrowings and general corporate purposes. Axis Capital, Intensive Fiscal Services and JM Financial are the book-running lead managers, and Link Intime India is the registrar of the issue.

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Baazar Style Retail reported a standalone profit of Rs 5.1 crore in the financial year 2023, up from a net loss of Rs 8.01 crore in the previous year. Revenue from operations during the fiscal year 2023 increased 43 percent to Rs 787.90 crore from Rs 551.12 crore in the previous year due to an increase in the sale of apparel and non-apparel and expansion of the retail store network and growth in same-store sales during the economic revival after the Covid-19 pandemic. As of December 31, 2023, the company had 153 stores across 140 cities.

Bazaar Style Retail is one of the leading players in the value retail market in West Bengal and Odisha. Its other core and focus markets include Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh and Chhattisgarh.