Home / Business and Economy / Sathya Agencies Gears Up for Rs 600 Crore Public Offering
Sathya Agencies Gears Up for Rs 600 Crore Public Offering
31 Mar
Summary
- Sathya Agencies aims to raise Rs 600 crore via IPO.
- The company operates 427 stores, mainly in smaller markets.
- Large appliances form over 60% of its FY25 sales.
- Revenue reached Rs 3,496.87 crore in FY25.
Sathya Agencies has filed its Draft Red Herring Prospectus (DRHP) with SEBI, seeking to raise approximately Rs 600 crore through an initial public offering. This public issue will comprise a fresh issue of shares valued at up to Rs 300 crore, alongside an offer-for-sale (OFS) by promoter shareholders also worth up to Rs 300 crore.
The company operates under the 'Sathya' and 'Unilet' brands, boasting a network of 427 stores. Over 90% of these stores are situated in Tier-2 and smaller markets, with a significant concentration in Tamil Nadu, which hosts 301 outlets. This extensive retail footprint spans about 1.9 million square feet, supported by 22 warehouses covering over 10 lakh square feet.
Sathya Agencies' business model is largely driven by large appliances like air conditioners, televisions, refrigerators, and washing machines, which accounted for over 60% of its sales in FY25. Mobile and IT products contributed approximately 29% of sales, with the remainder coming from accessories and small appliances. The company collaborates with over 150 domestic and global brands.
Financially, Sathya Agencies reported robust growth, with revenue from operations reaching Rs 3,496.87 crore in FY25, exhibiting a Compound Annual Growth Rate (CAGR) of 35.77% between FY23 and FY25. The net profit for the year was Rs 46.26 crore, and the company achieved a return on equity of 25.58%.
