According to the draft red herring prospectus (DRHP) filed on Monday, the proposed IPO will raise Rs. 300 crores fresh issue of equity shares and by the promoters Rs. Includes an Offer for Sale (OFS) of equity shares worth Rs 300 crore.
The OFS involved the sale of shares by the promoters – Johnson Asaria, J John Satya and Charles Pekiaraj. Each of them Rs. 100 crore worth of equity shares will be offloaded.
The Tamil Nadu-based company proposes to use the proceeds from the fresh issue for repayment or prepayment of certain borrowings, payment of partial purchase consideration for the acquisition of its subsidiary Unilet Appliances Pvt Ltd and for general corporate purposes.
Also, the company expects that the listing of its equity shares will enhance its visibility and brand image and provide a public market for its shares.
Consumer electronics retailer Rs. Can undertake pre-IPO placement of securities up to 60 crores. If completed, the proceeds from such placement will be deducted from the size of the new issue.
Satya Agency Limited, established in 2005, is engaged in retailing of consumer durables and electronics. It operates consumer durables and electronics retail stores in Andhra Pradesh, Kerala, Tamil Nadu, Puducherry and Karnataka.
Anand Rathi Advisors and Motilal Oswal Investment Advisors are the book-running lead managers of the issue.
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