Baazar Style Retail IPO: What You Need to Know

Baazar Style Retail IPO:  Today, Friday, August 30, Baazar Style Retail is making its stock market debut with its Initial Public Offering (IPO). The company, known for its affordable fashion and general merchandise, has secured Rs.250 crores from anchor investors just a day before its launch. Earlier this month, it raised Rs.37 crores from Volrado Ventures Partners Fund II, which led to a reduction in the size of the new share issue.

Subscription Information

The IPO will be open for subscription until Tuesday, September 3. The share price is set between Rs.370 and Rs.389. Investors can apply for a minimum of 38 shares, with additional shares available in multiples of 38. The shares will be allocated as follows:

• 75% of Qualified Institutional Buyers (QIBs)
• 15% to Non-Institutional Investors (NIIs)
• 10% to Retail Investors

There’s also a discount of Rs.35 per share for eligible employees.

Company Overview

Founded in June 2013, Baazar Style Retail operates in West Bengal and Odisha. The company sells a variety of clothing and household items. It’s known for offering good quality at affordable prices.

Market Position and Performance

Baazar Style Retail is competing with other fashion retailers like V-Mart Retail and V2 Retail. On the first day of the IPO, it was 41% subscribed. Retail investor subscriptions were at 67%, while non-institutional investors took up 32% of their quota. The company has shown strong growth, with a 32.86% annual growth rate in sales from FY2022 to FY2024. It also has a good track record in return on equity (ROE) and return on capital employed (ROCE).

IPO Structure and Use of Funds

The IPO includes a fresh issuance of Rs.148 crores and an offer for sale of up to 17.65 million shares by current shareholders. The total amount for the IPO is Rs.834.68 crores, with the offer for sale portion valued at Rs.687 crores at the upper end of the price range. The funds raised will be used to repay loans and for general corporate purposes.

Lead Managers and Grey Market Performance

Axis Capital Ltd, Intensive Fiscal Services Private Ltd, and JM Financial Ltd are managing the IPO. Link Intime India Private Ltd is the registrar.

Also read: Top 5 SIP Mutual Funds That Turned Rs. 20,000 Monthly Investment into Over Rs.1 Crore

In the grey market, Baazar Style Retail shares are trading at a premium of Rs.130, suggesting a strong potential listing price of around Rs.519, which is 33.42% higher than the top end of the IPO price band. This indicates positive investor sentiment and expectations of a robust market debut.