Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail, a value fashion retailer, has filed its draft red herring prospectus (DRHP) with capital market regulator SEBI to raise funds from a public issue.
The proposed initial public offering (IPO), with a face value of ₹5 per equity share, will be a mix of fresh issue of up to ₹185 crore and an offer of sale (OFS) of up to around 1.69 crore shares by the promoter group and other selling shareholders. The size of the IPO is undisclosed.
Baazar Style Retail’s promoters are Pradeep Kumar Agarwal, Rohit Kedia, Shreyans Surana, Bhagwan Prasad, Rajendra Kumar Gupta, Rajendra Kumar Gupta (HUF) and Sri Narsingh Infrastructure. The OFS consists of the sale of equity shares of up to 27.2 lakh 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, 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 and up to 5.4 lakh shares by D.K Surana HUF. The offer includes a reservation for subscription by eligible employees.
Pre-IPO placement
The Kolkata-based company, in consultation with the book-running lead managers, may consider a further issue of specified securities through a private placement, rights issue, preferential offer, or any other method aggregating to ₹37 crore as a pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.
The proceeds from its fresh issuance to the extent of ₹135 crore will be utilised for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and for general corporate purposes.
The company is a value fashion retailer with leadership position in terms of scale in West Bengal and Odisha in organised value retail market. It offers products under the apparels and general merchandise segments, through a chain of ‘value retail’ stores. As on December 31, 2023, it had 153 stores across 84 districts in nine States.
Axis Capital, Intensive Fiscal Services and JM Financial are the book-running lead managers of the issue.