Rama Krishna Sangem
Kolkata-based Baazar Style Retail Limited, a value fashion retailer with a leadership position in terms of scale in the states of West Bengal and Odisha in the organized value retail market, has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The IPO, with a face value of Rs 5 per equity share, is a mix of fresh Issue of up to Rs 185 crore and an offer of sale of up to 16.88 million by the promoter group and other selling shareholders, said a press release.
The offer for sale consists of the sale of equity shares of up to 2.72 million shares by Rekha Rakesh Jhunjhunwala, up to 2.24 million shares by Intensive Softshare Private Limited, up to 1.49 million shares by Intensive Finance Private Limited, up to 1.31 million shares by Chandurkar Investments Private Limited, up to 9.19 lakh shares by Subroto Trading & Finance Company Limited, up to 8.44 lakh shares by Rajnish Gupta, up to 6.64 lakh shares by Madhu Surana, up to 6.42 lakh shares by Sabita Agarwal, up to 6 lakh shares by Rekha Kedia, up to 6 lakh shares by Shakuntala Devi, up to 5.4 lakh shares by D.K Surana HUF. The offer includes a reservation for subscription by eligible employees.
The company, in consultation with the book-running lead managers, may consider a further issue of specified securities through a private placement, rights issue, preferential offer, or any other method aggregating to Rs 37 crore as a “pre-IPO placement.”. If such placement is completed, the fresh issue size will be reduced.
Book building process
The offer is being made through the book-building process, wherein not less than 75% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the net offer shall be available for allocation to non-institutional investors, and not more than 10% of the net offer shall be available for allocation to retail individual investors.
The proceeds from its fresh issuance to the extent of Rs 135 crore will be utilized for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and for general corporate purposes.
Incorporated in FY14, 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
