Sathya Agencies Wins SEBI Approval for ₹600 Crore IPO To Cut Debt

Consumer durables and electronics retailer Sathya Agencies has received approval from the Securities and Exchange Board of India (SEBI) to launch its proposed ₹600 crore Initial Public Offering (IPO).

Sathya Agencies IPO will comprise a fresh issue of equity shares worth up to ₹300 crore and an offer for sale (OFS) of equity shares worth ₹300 crore by the promoter group.

Use Of IPO Proceeds

According to the company's draft red herring prospectus (DRHP), the OFS includes equity shares worth ₹100 crore each from promoters Johnson Asaria, J John Sathya and Charles Packiaraj.

Sathya Agencies said it will use the net proceeds from the fresh issue mainly to repay or prepay certain outstanding borrowings, either fully or partly. A portion of the funds will also go towards paying part of the purchase consideration for acquiring its wholly-owned subsidiary, Unilet Appliances. The remaining amount will be used for general corporate purposes.

Retail Network Across Five Regions

Sathya Agencies sells a wide range of consumer durables and electronic products across different price segments.

As of 31 January 2026, the company operated 427 stores spread across Tamil Nadu, Andhra Pradesh, Kerala and Karnataka, along with the Union Territory of Puducherry. The count includes stores run directly by the company as well as outlets operated through its subsidiaries, Unilet and Sathya Mobiles.

Unilet had 54 stores in Karnataka as of the same date. Sathya Mobiles operated 35 retail outlets, mainly in Tamil Nadu, focusing on mobile phones and related accessories.

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Revenue And Profit Show Strong Growth

The retailer has reported strong growth in its business over the last few years. Revenue from operations rose from ₹1,897 crore in FY23 to ₹3,496 crore in FY25. It translated into a compound annual growth rate (CAGR) of 35.77%. For the six months ended 30 September 2025, the company reported revenue from operations of ₹1,996 crore.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) also increased during the period. EBITDA stood at ₹89.8 crore in FY23 and grew to ₹222 crore in FY25.

Sources:

Businessworld

The Economic Times