Rekha Jhunjhunwala-backed Baazar Style Retail raises Rs 250 cr from anchor investors

Source-PTI

New Delhi: Fashion retailer Baazar Style Retail Ltd announced on Thursday that it raised Rs 250 crore from anchor investors just before its initial public offering (IPO) opened for public subscription. According to a circular posted on the BSE website, the anchor investors include 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, 28 funds were allocated 64.29 lakh equity shares at a price of Rs 389 each, totaling Rs 250.1 crore in transaction size. The IPO worth Rs 835 crore will begin accepting subscriptions on August 30 and close on September 3. The price range for each share has been set at Rs 370-389. The upcoming IPO includes a new equity share issue of Rs 148 crore and an Offer for Sale (OFS) of up to Rs 687 crore, sold by the promoter group and other shareholders.

This will bring the total issue size to Rs 835 crore at the higher end of the price band of Rs 389. Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, Intensive Finance Pvt Ltd, and other entities will sell off some of their ownership shares under the OFS. The funds raised from the new offering will be utilized to repay debts amounting to Rs 146 crore, with the remaining amount being directed towards general corporate uses. Earlier in the same month, the Kolkata company secured Rs 37 crore from Volrado Ventures Partners Fund II in a pre-IPO placement round, leading to a decrease in the size of the new offering.

Baazar Style Retail is a key player in the value retail market in West Bengal and Odisha. Additionally, Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh are also key focus markets for the company. Investors are allowed to bid for at least 38 shares in a single lot, with the option to bid for more shares in increments of 38. Baazar Style Retail's revenue from operations in FY24 was Rs 972.88 crore, with a profit after tax of Rs 21.94 crore. Axis Capital, Intensive Fiscal Services, and JM Financial are the primary managers overseeing the issue.