Value fashion retailer Baazar Style Retail Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO).
The proposed IPO is a combination of a fresh issue of equity shares worth INR 185 crore and an Offer for Sale (OFS) of up to 1.68 crores by promoter group entities and other selling shareholders, Draft Red Herring Prospectus (DRHP) filed with Sebi showed.
Under the OFS, Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares, Intensive Softshare Private Limited will offload 22.40 crore shares and Intensive Finance Private Limited will divest 14.87 lakh shares among others.
The offer includes a reservation for subscription by eligible employees.
Going by the draft papers filed on Friday, the Kolkata-based company may consider raising INR 37 crore in a pre-IPO placement round. If such placement is completed, the fresh issue size will be reduced.
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Proceeds from the fresh issuance to the extent of INR 135 crore will be utilised for payment of debt and general corporate purposes.
Bazaar Style Retail is one of the leading players in the value retail market in West Bengal and Odisha.
Additionally, its other core and focus markets include Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh and Chhattisgarh.
As of December 31, 2023, the company had 153 stores.
Baazar Style Retail clocked a profit of INR 5.10 crore in the financial year 2023 as compared to a net loss of INR 8.01 crore in the previous year.
Its revenue from operations during the fiscal year 2023 increased significantly to INR 787.90 crore from INR 551.12 crore in the previous year.
Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers to the issue.
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