Rekha Jhunjhunwala set to pocket Rs 106 cr from Baazar Style Retail IPO

Baazar Style Retail IPO: Rekha Rakesh Jhunjhunwala, wife of the late Rakesh Jhunjhunwala, a legendary investor often referred to as 'India's Warren Buffett,' is expected to earn approximately Rs 106 crore by offloading her stake in fashion retailer Baazar Style Retail through the Initial Public Offering (IPO).

The public issue for Baazar Style Retail is set to open for public subscription on Friday, August 30, 2024. It consists of a fresh issue of 3,804,627 shares and an offer for sale with promoters and investors offloading 17,652,320 shares with a face value of Rs 5 each.

Among those investors selling shares is Rekha Rakesh Jhunjhunwala, who owns 5,446,240 shares, representing a 7.69  per cent stake in the company. She plans to offload up to 2,723,120 equity shares through the public issue. According to the Red Herring Prospectus (RHP), her cost of acquisition for these shares is nil. By selling these shares at the upper end of the IPO price band, which is Rs 389, she is set to earn Rs 105.92 crore.

 

Among the other investors, Intensive Softshare is offloading 2,240,680 equity shares. At the upper end of the issue price, they can expect to generate around Rs 87.16 crore from the transaction.

Promoters selling their stakes in Baazar Style Retail

Meanwhile, from the promoters' group, Madhu Surana, Sabita Agarwal, Subroto Trading & Finance, Rekha Kedia, and Shakuntala Devi are offloading their stakes in the company via the IPO.

As per the RHP papers, Madhu Surana plans to offload 964,858 equity shares with a face value of Rs 5 each. By doing so, Surana can expect to get around Rs 37.53 crore at the upper end of the issue price following the completion of the IPO.

Sabita Agarwal, who plans to offload 942,000 equity shares with a face value of Rs 5 each, is likely to get Rs 36.64 crore at the upper end of the issue price from the public issue.

Subroto Trading & Finance, which plans to offload 919,156 equity shares with a face value of Rs 5 each, is likely to get Rs 35.75 crore at the upper end of the issue price from the public issue.

Meanwhile, Rekha Kedia and Shakuntala Devi, who plan to offload 750,000 and 700,000 equity shares of the company respectively, are likely to generate approximately Rs 29.17 crore and Rs 27.23 crore from the transaction, considering the upper end of the issue price.
 

Here are the other key details of the public offering of Baazar Style Retail that investors may need to be aware of:

Baazar Style Retail IPO objective

In its RHP papers, the company stated that it will not receive any proceeds from the Offer for Sale. The proceeds of the Offer for Sale will be received by the selling shareholders and will not form part of the net proceeds. Each selling shareholder will be entitled to its respective portion of the proceeds of the Offer for Sale after deducting its respective proportion of the offer expenses and relevant taxes.Baazar Style Retail proposes to utilise the net proceeds towards the prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and for general corporate purposes.

Baazar Style Retail IPO grey market premium (GMP)

Meanwhile, ahead of the opening of the subscription window for the public issue of Baazar Style Retail, the company's shares are commanding a strong premium in the grey market. Baazar Style Retail shares were trading at a premium of Rs 141, or 36.25  per cent higher at the upper end of the IPO price, indicating positive market sentiment for the IPO.

Link Intime India is the registrar for the Baazar Style Retail IPO, while Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers of the public issue. The three-day subscription window to bid for the Baazar Style Retail IPO closes on Tuesday, September 3, 2024.

Baazar Style Retail allotment, listing date

Following the closure of the subscription window for the IPO, the basis of allotment of Baazar Style Retail shares is likely to take place on Wednesday, September 4, 2024, and the company's shares will be credited to demat accounts on Thursday, September 5, 2024.Baazar Style Retail shares are scheduled to make their debut on the BSE and NSE on Friday, September 6, 2024.