Sathya Agencies files DRHP with Sebi for ₹600 cr IPO with fresh issue, OFS

Offer comprises ₹300 crore fresh issue and ₹300 crore OFS; proceeds to fund acquisition of subsidiary, repay borrowings and support general corporate purposes

Sathya Agencies, South India’s largest consumer durables and electronics-focused retail player, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise up to ₹600 crore through an initial public offering (IPO).

 

The offer includes a fresh issue of up to ₹300 crore and an offer for sale of up to ₹300 crore by the promoter selling shareholders Johnson Asaria, J John Sathya, and Charles Packiaraj.

 

The company proposes to utilise the net proceeds from the fresh issue towards payment of partial purchase consideration for the acquisition of wholly owned subsidiary Unilet Appliances of ₹35 crore; repayment or prepayment, in full or part, of certain outstanding borrowings availed by the company (₹175 crore), and the rest to be utilised for general corporate purposes.

 

 

The company offers a comprehensive portfolio of consumer electronics and home appliances products across multiple price points and categories, catering to a broad customer base. As at January 31, Sathya Agencies’ product range includes (i) large appliances such as air-conditioners, televisions, refrigerators, and washing machines, (ii) mobiles, IT products, and accessories, (iii) small and kitchen appliances such as water heaters, mixers, grinders, gas stoves, fans, and consumer electronics accessories.

 

The company has commercial relationships with established electronics and appliance brands such as LG, Blue Star, Daikin, Whirlpool, Haier, Sony, Havells, Panasonic, and O General, and, as at January 31, works with over 150 domestic and international original equipment manufacturers (“OEMs”) and authorised distributors.

 

The company and its subsidiaries operate 392 consumer electronics retail stores offering a wide range of consumer electronics products, and 35 mobile retail stores primarily engaged in the sale of mobile phones and related accessories, across four states namely Tamil Nadu, Andhra Pradesh, Kerala, Karnataka, and one Union Territory of Puducherry. Its aggregate retail footprint across its store network was approximately 1.90 million square feet.

 

Anand Rathi Advisors and Motilal Oswal Investment Advisors are the book-running lead managers to the offer.