Baazar Style Retail Ltd, a value fashion retailer, said one day prior to its inaugural share-sale opening for public subscription that it has received Rs. 250 crore from anchor investors. A circular posted on the BSE website lists the anchor investors as Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund IV Gamma, HSBC Global Investment Funds, Allianz Global Investors Fund, Al Mehwar Commercial Investments LLC, HDFC Mutual Fund (MF), HSBC MF, Bandhan MF, and Bajaj Allianz Life Insurance Company.
According to the data, the company has given 28 funds 64.29 lakh equity shares at a cost of Rs. 389 each, for a total transaction amount of Rs. 250.1 crore. The subscription period for the Rs. 835-crore initial public offering (IPO) will begin on August 30 and end on 3rd September.
The proposed IPO consists of an offer for sale (OFS) of up to 1.76 crore valued at Rs. 687 crore (at the upper end of the price band) by promoter group businesses and other selling shareholders, in addition to a new issue of equity shares priced at Rs. 148 crore.
With this, the highest limit of the issuance size would be Rs. 835 crore, and the price range will be Rs. 389. Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, and Intensive Finance Pvt Ltd, among others, would sell off a portion of their holdings in accordance with the OFS.
A total of Rs. 146 crore of the fresh issue’s proceeds will be applied to debt repayment, with the remainder money going towards general corporate purposes. The Kolkata-based business raised Rs. 37 crore in a pre-IPO placement round earlier this month from Volrado Ventures Partners Fund II. As a result, the size of the new issue was decreased.
In West Bengal and Odisha, Bazaar Style Retail is one of the top companies in the value retail sector. Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh are among its other key and target markets. In FY ’24, Baazar Style Retail’s total operating revenue was Rs. 972.88 crore, while its profit after tax was Rs. 21.94 crore.
