BUSINESS: Bazaar Style Retail Ltd on Monday said it has raised Rs 37 crore from venture-capital fund Volrado Ventures Partners Fund II in a pre-IPO (initial public offering) round. With this, the size of the IPO-bound company’s fresh issue has come down to Rs 148 crore from Rs 185 crore earlier. Also, according to the draft red herring prospectus (DRHP), the Kolkata-based company’s maiden public offering includes an offer-for-sale (OFS) component of up to 1.68 crore shares by promoter group entities and other selling shareholders. Under the OFS, Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares, Intensive Softshares Private Limited will sell 22.40 lakh shares and Intensive Finance Private Limited will sell 14.87 lakh shares. In addition, Chandurkar Investments, Subroto Trading & Finance Company Limited, Rajnish Gupta, Madhu Surana, Sabita Agarwal, Rekha Kedia, Shakuntala Devi and D K Surana HUF will sell shares in the OFS. The offer includes reservation for subscription by eligible employees.
In a public announcement on Monday:-
Bazaar Style Retail said it has made a private placement of 9,56,072 equity shares to Volrado Ventures Partners Fund II at an issue price of Rs 387 per share, aggregating to Rs 37 crore. According to draft papers, the proceeds from the new issue will be used for debt repayment and general corporate purposes. 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. As of December 31, 2023, the company had 153 stores. Bazaar Style Retail earned a profit of Rs 5.10 crore in FY 2023. Its net loss was Rs 8.01 crore in the previous year. Its revenue from operations during FY 2023 increased to Rs 787.90 crore from Rs 551.12 crore in the previous year. Axis Capital, Intensive Fiscal Services and JM Financial are the book-running lead managers to the issue.
