The issue is a combination of a fresh equity sale worth Rs 185 crore and an (OFS) of 1.68 crore shares by promoters and other selling shareholders.
Under the OFS, Rekha Jhunjhunwala will offload about 27 lakh shares, and the rest will be sold by Intensive Softshare, Intensive Finance, Chandurkar Investments, Subroto Trading and Finance, Rajnish Gupta, Madhu Surana, Sabita Agarwal, among others.
The company, in consultation with the book-running lead managers, may consider a private pre-IPO placement for around Rs 37 crore and if that is the case, the fresh issue size will be reduced.
The offer is being made through the book-building process, wherein 75% will be available for allocation on a proportionate basis to qualified institutional buyers, 15% to non-institutional investors, and 10% to retail investors.
The proceeds from the fresh issue will be used for repayment of debt and other general corporate purposes.Incorporated in 2013-14, 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.The company is the fastest-growing value retailer during the period 2017 to 2023 when compared to V2 Retail and V Mart Retail in terms of store count and revenue from operations, according to a technopack report.
Its product portfolio includes both apparel and general merchandise, including cosmetics and imitation jewellery, consumer appliances, houseware products, and bags.
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Bazaar Style has a healthy mix of both private label and third-party brands that are offered in its stores including fashion apparel brands such as Killer and Sparky in select stores. The revenue contribution from its private labels has increased from 16.29% in FY21 to 36.78% as of December 2023.
The Kolkata-based company is backed by other investors including Kewal Kiran Clothing, Manohar Lal Agarwal, promoter of Haldiram Snacks, Boon-family office of Supreme Industries among others.
Baazar Style Retail clocked a standalone profit of Rs 5.10 crore in the financial year 2023, as against a net loss of Rs 8.01 crore in the previous year. Standalone revenue from operations during the fiscal year 2023 increased significantly to Rs 787.90 crore from Rs 551.12 crore in the previous year, an increase of 423%.
Its EBITDA margin percentage for FY23 was the highest when compared to the listed value retailers.
For the nine months ended December 31, 2023, consolidated revenue from operations stood at Rs 749.36 crore, and profit after tax stood at Rs 28.38 crore.
Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers, and Link Intime India is the registrar of the issue.
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