Baazar Style Retail IPO Oversubscribed 3.51 times on Day 2

2 Sep 2024 , 02:55 PM

Baazar Style Retail’s initial public offering (IPO) was successful on the second day of the bidding process on Monday, thanks to strong demand from NII category investors.

At 2:45 p.m., bids on the issue totalled 5,22,28,606 shares, or 3.47 times the issue size of 1,50,30,116. The quota set out for retail individual investors (RIIs) was used 3.03 times. The issue received 8.08 subscriptions in the NII category. The allocation for qualified institutional bidders was booked at 71%, or 0.71 times.

The IPO consists of a fresh equity offering of Rs 148 crore and an offer for sale of up to 1.76 crore shares. Rekha Jhunjhunwala, among others, will sell shares through the OFS.

The net revenues from the IPO would be utilised to clear borrowings and for general company purposes.

The company has set a price band of ₹370-389 per share, and investors can bid for 38 shares in a single lot.

Investors in the company include Rekha Rakesh Jhunjhunwala, wife of the late Rakesh Jhunjhunwala, Kewal Kiran Clothing, and Manohar Lal Agarwal, entrepreneur of Haldiram Snacks, among others.

Its income from operations increased from ₹551 crore in FY22 to Rs 973 crore in FY24, representing a CAGR of 32.86%, while the entire lifestyle and home value retail industry is expected to develop at a CAGR of 19.3% from FY22 to FY24.

The book-running lead managers for the IPO are Axis Capital, Intensive Fiscal Services, and JM Financial.

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