Fonebox Retail Limited IPO opens today; Anchor Book fully subscribed

• Prominent investors, NAV Capital VCC – NAV Capital Emerging Star Fund and LC Radiance Fund VCC participated in the anchor book subscription
• Company raises Rs. 5.78 crore from the sale of 8.26 lakh equity shares with a face value of Rs. 10 at Rs. 70/- per share
• Fonebox Retail intends to utilise net proceeds from IPO to expand its retail store network, for general corporate purposes and public issue expenses
• The issue opens today, January 25, 2024, and closes on January 30, 2024
• Beeline Capital Advisors Private Limited is the Book book-running lead Manager, and KFIN Technologies Limited is the registrar to the issue

Fonebox Retail Limited, (The Company), a popular mobile and consumer durables retailer in Gujarat, has completed its anchor book subscription of its IPO, raising Rs. 5.78 crore from the sale of 8.26 lakh Equity Shares at Rs. 70/- each. Marquee investors NAV Capital VCC – NAV Capital Emerging Star Fund and LC Radiance Fund VCC subscribed to the anchor book.

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While NAV Capital VCC – NAV Capital Emerging Star Fund contributed 82.57% of the total anchor book subscription, LC Radiance Fund VCC subscribed 17.43% of the anchor portion.

The Ahmedabad-based retailer is looking to raise Rs. 20.37 crore from the issue, which begins today, January 25, and will conclude on Tuesday, January 30, 2024. The company aims to be listed with NSE Emerge.

The price band of the issue is Rs. 66-70 per Equity Share with a face value of Rs. 10 apiece. The company’s IPO comprises a fresh issue of 29,10,000 Equity Shares with a face value of Rs. 10/-, through the book-building route. The company has appointed Beeline Capital Advisors Private Limited as the Issue's Book Running Lead Manager.

As many as 13,78,000 Equity Shares have been reserved for the QIB Quota, including Anchor Reservation, 4,16,000 Equity Shares for the HNI portion, 9,70,000 Equity Shares allocated for the Retail Quota and Market Maker Quota accounts for 1,46,000 Equity Shares.

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The company intends to invest Rs. 13.5 crore of the net proceeds to expand its retail store network to more cities in Gujarat. It plans to use the remaining capital for acquiring land to build corporate headquarters, hiring human resources in marketing and technical departments, servicing repayment obligations under existing and future financing arrangements and funding future growth opportunities.

Fonebox Retail is promoted by a group of dynamic and experienced entrepreneurs – Manishbhai Girishbhai Patel, Jigar Lallubhai Desai, Parth Lallubhai Desai, Jigneshkumar Dashrathlal Parekh and Amitkumar Gopalbhai Patel. The retailer commenced its operations in February 2021 under the brand ‘Fonebox’, and acquired two retail store brands ‘Fonebook’ and ‘MyMobile’ later that year.

The company operates a large network of 143 multi-brand outlets under three brand names: Fonebox, Fonebook and MyMobile, in more than 20 cities across Gujarat. Of the total stores, 39 are Company Owned and Company Operated (COCO model) stores, and 104 stores are Franchise Owed and Company Operated (FOCO model).

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