Sathya Agencies IPO plans: Files DRHP for Rs 600 crore issue

Sathya Agencies has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to Rs 600 crore through an initial public offering. The issue will comprise a fresh issue of shares worth up to Rs 300 crore and an offer-for-sale (OFS) of up to Rs 300 crore by promoter shareholders. The equity shares will have a face value of Rs 2 each, as per the DRHP.

The promoters, Johnson Asaria, J John Sathya and Charles Packiaraj, are planning to offload stake as part of the OFS. The company may also consider a pre-IPO placement of up to Rs 60 crore, which, if completed, could reduce the size of the fresh issue, the DRHP added.

While detailed utilisation of proceeds will be outlined in later filings, the fresh issue is expected to support the company’s expansion and operational requirements.

Sathya Agencies IPO: Regional presence

Sathya Agencies operates under the ‘Sathya’ and ‘Unilet’ brands and positions itself around the idea of ‘Spreading Happiness’. According to the DRHP, the company operates 427 stores across Tamil Nadu, Andhra Pradesh, Kerala, Karnataka, and Puducherry.

According to the DRHP, over 90% of its network is concentrated in Tier-2 and smaller markets, with Tamil Nadu alone accounting for 301 stores.

Furthermore, according to the DRHP, its retail footprint spans about 1.9 million square feet, supported by 22 warehouses covering over 10 lakh square feet.

Sathya Agencies IPO: Appliance-led business

According to the DRHP, Sathya Agencies derives the bulk of its business from large appliances such as air conditioners, televisions, refrigerators, and washing machines, which together contributed over 60% of its sales in FY25. Mobiles and IT products accounted for about 29% of sales, while the rest came from accessories and small appliances such as mixers and fans, the company detailed.

The company works with over 150 domestic and global brands, including LG, Samsung, Whirlpool, Haier, Sony, and Philips, giving it a wide product portfolio across price points. Nearly 49% of its revenue comes from EMI-based purchases, the DRHP mentioned.

Sathya Agencies: Financial performance and growth trajectory

Sathya Agencies reported revenue from operations of Rs 3,496.87 crore in FY25, with a CAGR of 35.77% between FY23 and FY25.

Net profit for the year was Rs 46.26 crore, and return on equity stood at 26.58%, as per the DRHP. The company has a workforce of 3,516 employees.