Rekha Jhunjhunwala-Backed Style Baazar Launching IPO
Baazar Style Retail, often known as Style Baazar, is expected to launch its IPO this week, supported by Rekha Jhunjhunwala.
Baazar Style Retail, commonly known as Style Baazar, is set to establish its initial public offering (IPO) this week. It is backed by prominent investor Rekha Jhunjhunwala. The company filed its Draft Red Herring Prospectus (DRHP) in May 2023.
The proposed IPO will include a fresh issue of equity shares valued at ₹185 crore, alongside an offer for sale (OFS) of up to 1.68 crore shares by promoter group entities and other selling shareholders.
Details of the Offer for Sale (OFS):
In the OFS, Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares. Intensive Softshare Private Limited will offload 22.40 lakh shares, while Intensive Finance Private Limited will divest 14.87 lakh shares. The IPO also includes a reservation for subscriptions by eligible employees.
Utilization of Proceeds:
The net payoffs from the IPO, estimated at ₹135 crore, will be allocated towards paying down the company’s debt and for general corporate objectives.
Earlier this month, Style Baazar raised ₹37 crore in a pre-IPO placement from institutional investors, including Volrado Ventures Partners Fund II.
Market Presence and Financials:
Style Baazar is a leading player in the value retail market, particularly in West Bengal and Odisha. The company operates 153 stores, covering over 1.39 million square feet, in 140 cities in nine states.
In the financial year 2023 (FY23), the company reported revenue from operations of ₹787.9 crore and a profit after tax (PAT) of ₹5.4 crore.
IPO Management:
Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead directors for the IPO. Link Intime India is the registrar for the issue.
This IPO is anticipated to attract considerable interest, given the company’s strong regional presence and the backing of influential investors like Rekha Jhunjhunwala.
