Value fashion retailer Baazar Style Retail Ltd on Thursday said it has collected Rs 250 crore from anchor investors, a day before its initial share-sale opening for public subscription. Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund IV Gamma, HSBC Global Investment Funds, Allianz Global Investors Fund, Al Mehwar Commercial Investments LLC, HDFC Mutual Fund (MF), HSBC MF, Bandhan MF and Bajaj Allianz Life Insurance Company are among the anchor investors, according to a circular uploaded on the BSE website.
The company has allotted 64.29 lakh equity shares to 28 funds at Rs 389 apiece, aggregating the transaction size to Rs 250.1 crore, the data showed.
The Rs 835-crore initial public offering (IPO) will open for subscription on August 30 and conclude on September 3. The price band has been fixed at Rs 370-389 per share.
The proposed IPO is a combination of a fresh issue of equity shares worth Rs 148 crore and an offer for sale (OFS) of up to 1.76 crore valued Rs 687 crore (at the upper end of the price band) by promoter group entities and other selling shareholders.
With this, the total issue size will be Rs 835 crore at the upper and of the price band Rs 389.
Under the OFS, Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, Intensive Finance Pvt Ltd, among others, will divest their part stakes.
Proceeds from the fresh issue, to the extent of Rs 146 crore will be used for payment of debt and the remaining funds will be used for general corporate purposes.
Earlier this month, the Kolkata-based company raised Rs 37 crore from Volrado Ventures Partners Fund II in a pre-IPO placement round.
Accordingly, the fresh issue size was reduced. 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.
Investors can bid for a minimum of 38 shares in one lot, with additional shares in multiples of 38.
Baazar Style Retail’s consolidated revenue from operations stood at Rs 972.88 crore in FY24 and profit after tax stood at Rs 21.94 crore in FY24.
Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers to the issue.
