City-based Baazar Style Limited on Monday announced a price band of ₹370-389 per share for its initial public offer (IPO). At the upper end of the price band, the Rekha Jhunjhunwala-backed company is looking to raise ₹835 crore.
The IPO consists of a fresh issue of up to ₹148 crore and an offer for sale of up to 1.76 crore shares by promoter group and investors. The proceeds from the fresh issue to the extent of ₹146 crore would be used for prepayment or repayment of outstanding borrowings and general corporate purposes.
Earlier this month, the company had undertaken a private placement of 9,56,072 equity shares to Volrado Ventures Partners Fund II at an issue price of ₹387 per share, aggregating to ₹37 crore. Accordingly, the fresh issue size is reduced, a statement said.
Incorporated in 2013, the company, which operates under the brand name ‘Style Baazar’, had a market share of 3.03 per cent and 2.22 per cent, respectively, in the organised value retail market in Bengal and Odisha according to a Technopak report. The retailer offers both apparels and general merchandise, including cosmetics and imitation jewellery, consumer applicable and houseware products. As of FY24, the company operated a total of 162 stores.
The IPO opens on August 30 and closes on September 3. No less than 50 per cent of the of the offer shall be available for qualified institutional buyers.
