Baazar Style Retail Ltd, a luxury fashion retailer, announced on Thursday that it has secured Rs 250 crore from anchor investors, just one day prior to the launch of its initial share sale for public subscription.
The anchor investors include 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.
The data indicated that the company has allocated 64.29 lakh equity shares to 28 funds at a price of Rs 389 each, resulting in an aggregate transaction value of Rs 250.1 crore. The subscription period for the Rs 835-crore initial public offering (IPO) will commence on August 30 and conclude on September 3.
The price band has been established at Rs 370-389 per share. The proposed initial public offering (IPO) is a hybrid of a fresh issue of equity shares valued at Rs 148 crore and an offer for sale (OFS) of up to 1.76 crore, which is valued at Rs 687 crore (at the upper end of the price band) and was made by the promoter group entities and other selling shareholders.
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This will result in a total issue size of Rs 835 crore at the upper end of the price band, which is Rs 389. Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, and Intensive Finance Pvt Ltd, among others, will divest their partial stakes under the OFS.
The debt will be paid with the proceeds of the fresh issue, which amounts to Rs 146 crore. The residual funds will be allocated to general corporate purposes. In a pre-IPO placement round earlier this month, the Kolkata-based company secured Rs 37 crore from Volrado Ventures Partners Fund II.
Subsequently, the extent of the new issue was diminished. Bazaar Style Retail is a prominent participant in the value retail market of West Bengal and Odisha. Furthermore, its other primary and focus markets consist of Uttar Pradesh, Chhattisgarh, Andhra Pradesh, Tripura, Bihar, and Assam.
About Baazar Style Retail
Founded in 2013 by Pradeep Agarwal, Rohit Kedia, Bhagwan Prasad, Rajendra Gupta, Shreyans Surana, and Rajendra Surana, Style Baazar unites lovers of style and fashion across India. One of India’s original retail pioneers, with multiple retail formats.
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