Baazar Style Retail backed by Rekha Jhunjhunwala, popularly known as Style Baazar, is set to launch its initial public offering (IPO) this week, as per reports. The company, which filed its draft red herring prospectus (DRHP) in May, plans to raise ₹185 crore through a fresh issue of equity shares. Additionally, the IPO will feature an offer for sale (OFS) comprising up to 1.68 crore shares, which will be offloaded by promoter group entities and other selling shareholders.
Details of the Offer for Sale
Rekha Rakesh Jhunjhunwala, a prominent backer of the company, is set to sell 27.23 lakh equity shares as part of the OFS. Alongside her, Intensive Softshare Private Limited will divest 22.40 lakh shares, and Intensive Finance Private Limited will offload 14.87 lakh shares. The IPO will also include a reservation for subscriptions by eligible employees, offering them an opportunity to participate.
Utilization of Proceeds
The net proceeds from the IPO, estimated at ₹135 crore, are earmarked for debt repayment and general corporate purposes. This strategic move aims to strengthen the company’s financial position and support its growth initiatives.
Pre-IPO Placement and Financial Performance
Earlier in the month, Style Baazar successfully raised ₹37 crore in a pre-IPO placement from institutional investors, including Volrado Ventures Partners Fund II. This placement underscores investor confidence in the company’s potential and growth prospects.
Style Baazar has established itself as a leading player in the value retail market, particularly in West Bengal and Odisha. The company operates 153 stores across more than 1.39 million square feet, spanning 140 cities in 9 states. For the fiscal year 2023, Style Baazar reported revenue of ₹787.9 crore and a profit after tax (PAT) of ₹5.4 crore.
Lead Managers and IPO Process
The book-running lead managers for the IPO are Axis Capital, Intensive Fiscal Services, and JM Financial, with Link Intime India serving as the registrar for the issue. The company’s decision to go public marks a significant milestone in its journey, offering investors a chance to be part of its growth story.