Rekha Jhunjhunwala likely to make Rs 106 crore from Baazar Style Retail IPO
Kolkata: Rekha Jhunjhunwala, wife of late billionaire investor Rakesh Jhunjhunwala, is set to offload her stake in Baazar Style Retail Limited, which is scheduled to launch its Initial Public Offering (IPO) on Friday.
Baazar Style Retail Limited, which is a value fashion retailer offering quality and affordable products under the apparel and general merchandise segments, through a chain of ‘value retail’ stores, has fixed the price band of Rs 370/- to Rs 389/- per Equity Share of face value Rs 5/- each for its maiden initial public offer.
According to a Business Standard report Rekha Jhunjhunwala is likely to earn Rs 106 crore with the sale of her stake in the company.
The IPO will open on Friday, August 30, 2024, for subscription and close on Tuesday, September 03, 2024.
Investors can bid for a minimum of 38 Equity Shares and in multiples of 38 Equity Shares thereafter. A Discount of 35 per Equity Share is being offered to Eligible Employees
The IPO consists of a fresh issue of up to Rs 148 crore and an offer for sale (OFS) of up to 1,76,52,320 equity shares by Promoter Group Selling Shareholders and Investor Selling Shareholders.
Rekha Rakesh Jhunjhunwala owns 5,446,240 shares, equating to a 7.69 percent stake, in the company. She intends to sell up to 2,723,120 equity shares through the public offering.
According to the Red Herring Prospectus (RHP), her acquisition cost for these shares is zero. By selling them at the upper limit of the IPO price band, set at Rs 389, she stands to earn Rs 105.92 crore.
Another investor, Intensive Softshare, is selling 2,240,680 equity shares. At the upper end of the issue price, they are likely to generate approximately Rs 87.16 crore from the sale.
Other investors from the promoters' group—Madhu Surana is likely to earn Rs around Rs 37.53 crore at the upper end of the issue price following by offloading 964,858 equity shares with a face value of Rs 5 each; Sabita Agarwal can get Rs 36.64 crore by offloading 942,000 equity shares; Subroto Trading & Finance could get to get Rs 35.75 crore from 919,156 equity shares, Rekha Kedia could generate Rs 29.17 crore by offloading 750,000 equity shares, and Shakuntala Devi Rs 27.23 crore by offloading 700,000 equity shares via the IPO.
The proceeds from the fresh issue, to the extent of Rs 146 crore for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the
In its RHP documents, the company clarified that it will not receive any proceeds from the Offer for Sale. The funds generated from the Offer for Sale will go directly to the selling shareholders and will not be included in the net proceeds. Each selling shareholder will receive their respective share of the proceeds after deducting their portion of the offer expenses and applicable taxes.
Baazar Style Retail plans to use the net proceeds for the prepayment or repayment of certain outstanding borrowings and for general corporate purposes. company; and general corporate purposes.
Earlier, this month, Baazar Style Retail Limited had undertaken a private placement of 9,56,072 equity shares to Volrado Ventures Partners Fund II at an issue price of Rs 387 per equity share (including a premium of Rs 382 per equity share) aggregating to Rs 37 crore. Accordingly, the fresh issue is reduced.
Incorporated in 2013, Style Baazar had a market share of 3.03% and 2.22%, respectively in organized value retail market in the states of West Bengal and Odisha, respectively as per The Technopak Report.
It has the largest retail footprint in Eastern India when compared to the Listed Value Retailers in Fiscal 2024. The Company was the fastest growing value retailer between 2017 to 2024, in terms of both store count and revenue from operations, when compared to V2 Retail Limited and V-Mart Retail Limited as per The Technopak Report.
A majority of its stores are operated under the brand name ‘Style Bazaar’. It has developed its brand ‘Style Bazaar’ over the years, through a wide range of products, which it believes has resulted in strong customer loyalty and recognition.
As of March 31, 2024, its stores had an average size of 9,046 square feet with trained staff to enhance customer experience.
Baazar Style Retail's consolidated revenue from operations stood at Rs 972.88 crore in fiscal 2024 and Profit after tax stood at Rs 21.94 crore in fiscal 2024.
Axis Capital Limited, Intensive Fiscal Services Private Limited, and JM Financial Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
The offer is being made through the Book Building Process, wherein not less than 50% of the Net Offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the offer shall be available for allocation to Non-Institutional Bidders and not more than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
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