Baazar Style Retail IPO Opens August 30 – Check the Details
Baazar Style Retail IPO
Baazar Style Retail IPO: Comprehensive Details on the Upcoming Issue
The initial public offering (IPO) of Baazar Style Retail, a leading fashion retailer, is poised to capture significant investor attention as it opens on August 30, 2024.
This IPO represents a pivotal moment for the company as it seeks to raise a substantial ₹834.68 crore.
The price band for the shares has been finalized at ₹370 to ₹389 per share, setting the stage for a highly anticipated listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 6, 2024.
This detailed overview will provide insights into the IPO’s structure, the company’s operations, financial health, and what potential investors can expect.
IPO Structure and Timeline
Baazar Style Retail’s IPO will commence on August 30, 2024, and investors will have until September 3, 2024, to submit their bids.
On August 29, 2024, anchor investors will have the opportunity to place their bids, often a key indicator of market confidence in the IPO.
The company aims to raise ₹834.68 crore, with the pricing set between ₹370 and ₹389 per share. Following the conclusion of the issue, shares are expected to be listed on the BSE and NSE on September 6, 2024.
Company Profile and Operations
Baazar Style Retail is a prominent name in the fashion retail industry, renowned for its diverse range of home furnishing products.
The company offers an extensive selection of merchandise, including clothing, toys, and other general goods catering to men, women, boys, girls, and children.
The company’s retail stores operate under the brand name “Style Bazaar,” providing customers with a wide variety of options in fashion and home essentials.
The company’s operational footprint spans several Indian states, including Odisha, Bihar, Assam, Jharkhand, Andhra Pradesh, Uttar Pradesh, Tripura, Chhattisgarh, and West Bengal.
This expansive reach highlights Baazar Style Retail’s robust distribution network and its significant presence in the Indian retail market.
IPO Details: Share Allocation and Offerings
The IPO comprises two primary components:
- New Shares: Baazar Style Retail will issue new shares worth ₹148 crore. This fresh issuance aims to bolster the company’s capital base, supporting its expansion plans and operational enhancements.
- Offer for Sale (OFS): Existing shareholders and promoters will offer 1.76 crore shares as part of the OFS. At the upper end of the price band, the OFS is valued at ₹687 crore. This component allows existing investors to partially exit their investments and realize returns on their holdings.
Reserve Portions for Various Investors
The IPO is structured to allocate shares across different investor categories:
- Qualified Institutional Buyers (QIBs): 50% of the IPO shares are reserved for QIBs. This large allocation underscores the confidence institutional investors have in Baazar Style Retail’s growth prospects.
- Retail Investors: 35% of the shares are reserved for retail investors, reflecting the company’s aim to make the IPO accessible to a broad base of individual investors.
- Non-Institutional Investors (NIIs): The remaining 15% is allocated to non-institutional investors, including high-net-worth individuals and others who do not fall into the QIB or retail investor categories.
Key Financial Metrics
Baazar Style Retail has demonstrated solid financial performance leading up to its IPO. For the fiscal year 2024, the company reported a total income of ₹983 crore, indicating substantial revenue generation.
Net profit for the same period rose to ₹22 crore, showcasing a positive financial trajectory. The company’s total borrowings stood at ₹178.23 crore, which will be a key metric for investors to evaluate in terms of debt management and financial stability.
Book Running Lead Managers and Registrar
The book-running lead managers (BRLMs) for the IPO are Axis Capital, Intensive Fiscal Services Private Limited, and JM Financial.
These firms are responsible for managing the IPO process, including pricing, allocation, and overall execution. Link Intime India Private Ltd will act as the registrar, overseeing the administrative aspects of the share allocation and ensuring a smooth transition for investors.
Promoters and Notable Investors
The promoters of Baazar Style Retail include a diverse group of individuals and entities:
- Pradeep Kumar Agarwal
- Rohit Kedia
- Shreyans Surana
- Bhagwan Prasad
- Rajendra Kumar Gupta
- Sabita Agarwal
- Rajendra Kumar Gupta (HUF)
- Shri Narasimha Infrastructure Private Limited
In addition to these promoters, Rekha Jhunjhunwala, a well-known investor with a significant presence in the Indian market, is also involved with Baazar Style Retail. Her participation is often seen as a positive endorsement of the company’s prospects.
Growth and Future Prospects
Baazar Style Retail’s IPO represents a strategic move to fuel its growth and expansion plans. The funds raised are expected to be utilized for various purposes, including expanding the company’s retail footprint, enhancing its product offerings, and strengthening its supply chain.
The company’s broad presence across multiple states and its diverse product range position it well to capture a significant share of the growing Indian retail market.
Final Remarks
The Baazar Style Retail IPO presents a compelling opportunity for investors looking to participate in the burgeoning fashion and retail sector.
With a well-structured IPO, solid financial performance, and an extensive operational footprint, Baazar Style Retail is well-positioned to leverage the funds raised to drive future growth.
As the IPO opens on August 30, investors will be keenly watching to gauge the market’s response and the company’s potential to deliver on its promises.
Investors considering this IPO should closely analyze the company’s financials, growth prospects, and the overall market conditions to make informed investment decisions.
With the IPO scheduled for listing on September 6, 2024, it marks an exciting development in the retail sector, offering a window into the future of fashion retail in India.
