Sathya Agencies, South India’s largest consumer durables and electronics-focused retail player, has received capital market regulator Securities and Exchange Board of India’s (Sebi’s) approval to launch its ₹600-crore 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 promoter-selling shareholders Johnson Asaria, J John Sathya and Charles Packiaraj.
The company proposes to utilise the net proceeds from the fresh issue towards the payment of partial purchase consideration of ₹35 crore for the acquisition of its wholly owned subsidiary, Unilet Appliances; repayment or prepayment, in full or in part, of certain outstanding borrowings availed of by the company (₹175 crore); and the remaining amount for general corporate purposes.
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 of January 31, works with more than 150 domestic and international original equipment manufacturers (OEMs) and authorised distributors.
Sathya Agencies offers a comprehensive portfolio of consumer durables and electronics across multiple price points, including air conditioners, televisions, washing machines, smartphones, IT products and small kitchen appliances. As of January 31, the company and its subsidiaries operated 427 retail stores (comprising 392 consumer electronics stores and 35 mobile retail stores) across Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Puducherry, with an aggregate retail footprint of approximately 1.90 million square feet.
Anand Rathi Advisors and Motilal Oswal Investment Advisors are the book-running lead managers to the offer.
