West Bengal-based value retail chain Baazar Style Retail Ltd has started initial talks with investment banks to launch its initial public offer during July-September 2023, according to a report by Moneycontrol. The company owns brands Style Baazar and Express Baazar and is backed by late veteran investor Rakesh Jhunjhunwala.
“Pitches were held recently for the IPO mandate of Bazaar Style Retail Ltd and 3 investment banks should be shortlisted within a month or so. No final call has been taken as yet on the quantum of the IPO, but as of now the firm is looking to raise upwards of Rs 700 crore,” the report said quoting an industry source.
The public offer might comprise primary and secondary issues of shares. And, the plan is to facilitate partial exits for some of the investors and also mop up proceeds for growth capital and inorganic activity, said another source, according to the report.
Rakesh Jhunjhunwala was an investor in the IPO. Other investors in Baazar Style include the Intensive Group led by D K Surana, Kewal Kiran Clothing, Rajnish Gupta, family offices and other individuals.
The third source said the filing of IPO papers with Sebi might be done by December or January and a launch was targeted in July-August 2023.
“We are targeting to put up 175 stores by 2023 and 250 stores by 2025 and we think that growth will come from 12 states in East and Central India. Although our larger vision is to become one of the country’s largest value retailers, we want to first establish ourselves in this part of the country. We are following a cluster-based approach in which we go deep in almost all the districts of the states so we can have a better economy of scale and brand visibility,” said Shreyans Surana, CMD of Baazar Style Retail, via email, according to the report.
Tamilnad Mercantile Bank IPO
Tamilnad Mercantile Bank (TMB), one of the country’s oldest private sector lenders, is gearing up to launch an IPO worth up to Rs 832 crore on September 5. This will be the third initial share sale to hit the Street within a span of three weeks, following a lull of almost three months. The IPOs of Syrma SGS Technology and DreamFolks Services received a robust response from investors, winning bids for 32.6 times and 56.7 times the shares on offer.
It is one of the oldest private sector banks with a history of 101 years, having been established in 1921 as Nadar Bank. The bank offers a wide range of services primarily to micro, small and medium enterprises, agricultural and retail customers. The bank operates 509 branches of which 369 are in the home state of Tamil Nadu, which fetches over 70 per cent of business and the rest of the branches are spread across 15 states and four Union territories.
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