Baazar Style Retail raises Rs 37 cr from Volrado Partners in pre-IPO round
Under the OFS, Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares, Intensive Softshare Private Ltd will offload 22.40 lakh shares and Intensive Finance Pvt Ltd will divest 14.87 lakh shares.
Representative image
NEW DELHI: Baazar Style Retail Ltd on Monday said it has mobilised Rs 37 crore from venture-capital fund Volrado Ventures Partners Fund II in a pre-IPO (initial public offering) round.
With this, the IPO-bound company's fresh issue size has been reduced to Rs 148 crore, from Rs 185 crore earlier.
Additionally, the Kolkata-based company's maiden public issue consists of an Offer-For-Sale (OFS) component of up to 1.68 crore shares by promoter group entities and other selling shareholders, according to the draft red red herring prospectus (DRHP).
Under the OFS, Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares, Intensive Softshare Private Ltd will offload 22.40 lakh shares and Intensive Finance Pvt Ltd will divest 14.87 lakh shares.
Also, Chandurkar Investments, Subroto Trading & Finance Company Ltd, Rajnish Gupta, Madhu Surana, Sabita Agarwal, Rekha Kedia, Shakuntala Devi and D K Surana HUF will offload shares in the OFS.
The offer includes a reservation for subscription by eligible employees.
In a public announcement on Monday, Baazar Style Retail said it had undertaken a private placement of 9,56,072 equity shares to Volrado Ventures Partners Fund II at an issue price of Rs 387 apiece, aggregating to Rs 37 crore.
Going by the draft papers, proceeds from fresh issuance will be utilized for debt payment and for general corporate purposes.
Bazaar Style Retail is one of the leading players in the value retail market in West Bengal and Odisha. Additionally, its other core and focus markets include Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh and Chhattisgarh.
As of December 31, 2023, the company had 153 stores.
Baazar Style Retail clocked a profit of Rs 5.10 crore in the financial year 2023. It had a net loss of Rs 8.01 crore in the previous year. Its revenue from operations during the fiscal year 2023 increased to Rs 787.90 crore, from Rs 551.12 crore in the previous year.
Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers to the issue.
