Bazaar Style Retail IPO Opens Today

30 Aug 2024 , 03:19 PM

The initial public offering (IPO) of Bazaar Style Retail, supported by Rekha Rakesh Jhunjhunwala, opened for bidding today, Friday, August 30, 2024. The company is offering its shares within a price range of ₹370 to ₹389 per share.

Investors have the option to bid for a minimum of 38 equity shares, with the ability to place bids in multiples of 38 shares, until Tuesday, September 3, 2024.

Bazaar Style Retail operates primarily in West Bengal and Odisha, focusing on fashion retail. It offers a diverse range of apparel for men, women, boys, girls, infants, as well as non-apparel items and home furnishings.

The company emphasizes providing a family-oriented shopping experience by offering quality products at affordable prices, catering to a wide demographic.

The IPO is set to raise ₹834.68 Crore, which includes a fresh issue of shares worth ₹148 Crore and an offer-for-sale (OFS) of up to 1,76,52,320 shares by its promoters and existing shareholders, including Rekha Rakesh Jhunjhunwala and other notable investors.

At the time of writing on August 30, 2024 at 12:46 pm on the first day, the IPO had been subscribed 0.27 times, with retail investors subscribing 0.45 times and non-institutional investors (NII) 0.19 times.

The proceeds from the IPO will be used for prepayment or repayment of certain outstanding borrowings and for general corporate purposes.

Prior to the IPO, the company raised ₹37 Crore through a pre-IPO placement, resulting in a reduction of the fresh issue size to ₹148 Crore.

The company secured ₹250.1 Crore from anchor investors by allocating 64.29 lakh shares at ₹389 per share. Notable anchor investors include Ashoka India Equity Investment Trust Plc, HSBC Global, Allianz Global, and others.

Bazaar Style Retail was incorporated in 2013 and, as of March 31, 2024, operates 162 stores across 9 states including Odisha, Bihar, Assam, Jharkhand, Andhra Pradesh, Uttar Pradesh, Tripura, and Chhattisgarh. Each store averages 9,046 square feet and is staffed by trained employees to enhance the customer experience.

For the financial year ending March 31, 2024, the company reported a net profit of ₹21.94 Crore and a revenue of ₹982.83 Crore.

The company’s grey market premium (GMP) is currently between ₹130-₹135 per share, indicating potential gains of about 34% over the upper end of the price band.

Bazaar Style Retail has reserved shares worth ₹1 Crore for eligible employees, who will receive a discount of ₹35 per share.

50% of the net offer is reserved for qualified institutional bidders (QIBs), while retail investors have been allocated 35%. The remaining 15% of the net offer is reserved for non-institutional investors (NIIs).

Axis Capital, JM Financial, and Intensive Fiscal Services are acting as the lead managers for the IPO. Link Intime India is the registrar for the issue.

Shares of the company are expected to be listed on both BSE and NSE, with a tentative listing date of Friday, September 6, 2024.