Rekha Jhunjhunwala's Baazar Style Retail Poised for IPO Debut This Week

Rekha Jhunjhunwala-backed Baazar Style Retail (Style Baazar) is set to launch its initial public offering (IPO) this week, according to sources familiar with the situation.

Earlier in March, the Kolkata-based value fashion retailer submitted its draft red herring prospectus (DRHP). The DRHP reveals that the IPO will feature a fresh issue of equity shares valued at Rs 185 crore, along with an offer for sale (OFS) of up to 1.68 crore shares from promoter group entities and other selling shareholders. The offer will also include a portion reserved for subscriptions by eligible employees.

In the offer for sale (OFS), Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares, Intensive Softshare Private Limited will sell 22.40 lakh shares, and Intensive Finance Private Limited will divest 14.87 lakh shares, among others.

The Rs 135 crore raised from the fresh issue will be used to reduce debt and cover general corporate expenses.

On August 5, Baazar Style Retail raised Rs 37 crore through a pre-IPO placement with institutional investors, including Volrado Ventures Partners Fund II. The company issued 9,56,072 shares at Rs 387 each. The draft red herring prospectus (DRHP) has already received approval from SEBI.

Baazar Style Retail is a major player in the value retail sector in West Bengal and Odisha, operating 153 stores across over 1.39 million square feet in 140 cities across nine states as of December 31, 2023. For FY23, the company reported revenue of Rs 787.9 crore and a profit after tax (PAT) of Rs 5.4 crore.

Axis Capital, Intensive Fiscal Services, and JM Financial are serving as the lead managers for the offering, and Link Intime India is the registrar for the issue.