Rekha Jhunjhunwala-backed Baazar Style Retail IPO to hit D-Street next week

Baazar Style Retail IPO: The initial public offering of Baazar Style Retail Ltd, headquartered in Kolkata, is anticipated to debut on either Friday, August 30, or Monday, September 2, market sources informed livemint.

The price band for the Rekha Jhunjhunwala-backed issue will be out either on Monday, August 26 or Tuesday, August 27, indicated market sources.

Issue details

The value fashion retailer submitted its draft red herring prospectus (DRHP) in March. As per the DRHP, the planned IPO consists of a new issuance of equity shares amounting to ₹185 crore and a proposal to sell up to 1.68 crore shares by promoter group entities and other selling shareholders through an offer for sale (OFS). The offer also includes a provision for eligible employees to subscribe.

Rekha Rakesh Jhunjhunwala plans to sell 27.23 lakh equity shares in the OFS, while Intensive Softshare Private Ltd intends to offload 22.40 lakh shares and Intensive Finance Pvt Ltd will divest 14.87 lakh shares.

Additional shareholders participating in the OFS include Chandurkar Investments, Subroto Trading & Finance Company Ltd, Rajnish Gupta, Madhu Surana, Sabita Agarwal, Rekha Kedia, Shakuntala Devi, and D K Surana HUF, who will also be offloading their shares.

In August, Baazar Style Retail secured ₹37 crore from Volrado Ventures Partners Fund II in a pre-IPO round. As a result, the company's initial public offering size has been decreased to ₹148 crore from ₹185 crore.

Particularly prominent in the value retail space in West Bengal and Odisha, Bazaar Style Retail is well-established in Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh.

There were 153 locations run by the firm as of December 31, 2023.

Bazaar Style Retail made a profit of ₹5.10 crore in the fiscal year 2023, a considerable improvement over the net loss of ₹8.01 crore in the year prior. Operating revenue for the fiscal year 2023 increased to ₹787.90 crore from ₹551.12 crore the year before.

The book-running lead managers to the issue are Axis Capital, Intensive Fiscal Services, and JM Financial.

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