The initial public offering (IPO) of value fashion retailer Baazar Style Retail, backed by Rekha Jhunjhunwala, was subscribed 2.15 times on Monday, September 2, the second day of bidding.
In the first share sale, 3,22,54,096 equity shares were bid on, out of the 1,50,30,116 shares that were offered.
The portion reserved for retail investors was subscribed 4.15 times, while the portion for non-institutional investors (NIIs) was booked 2.07 times the quota. 70 per cent of subscriptions came from the qualified institutional buyers (QIBs) category.
On August 29, the company raised Rs 250 crore from anchor investors.
Price band and issue structure
Issue is open for bidding from August 30 to September 8. The Rs 834.68-crore IPO has a price band of Rs 370–Rs 389 per equity share.
In addition to an offer for sale (OFS) component of shares worth Rs 687 crore, the public offer consists of a new issuance of shares valued at Rs 148 crore.
Rekha Jhunjhunwala, Intensive Softshare Private Limited, Intensive Finance Pvt Ltd, and other parties will sell their portion of the stakes under the OFS.
Utlisation of IPO proceedings
The proceeds from the new issue will be used by the company for general corporate purposes and debt repayment.
Intensive Fiscal Services, JM Financial, and Axis Capital are the book-running lead managers for the IPO.
Local market growth
In addition, the overall lifestyle and home value retail market has shown a Compound Annual Growth Rate (CAGR) of approximately 19.3 per cent over the same period.
In the fiscal year 2024, the company posted a consolidated revenue from operation of Rs 972.88 crore. The Profit After Tax (PAT) of the company stood at Rs 21.94 crore.
Company offerings
In West Bengal and Odisha, Baazar Style Retail Ltd. is a significant value retailer. Bihar, Assam, Andhra Pradesh, Jharkhand, Chhattisgarh, Uttar Pradesh, and Tripura are among its other core and focus markets.
The National Stock Exchange (NSE) and the BSE will list the company's shares.
