Style Baazar Retail IPO: The initial public offering (IPO) of Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail Ltd will be opened for public subscription on August 30. According to Kolkata-based value fashion retailer’s red herring prospectus with markets regulator Sebi, the IPO comprises a fresh issuance of equity shares worth Rs 148 crore and an offer-for-sale (OFS) of 1.7 crore equity shares.
According to a Moneycontrol report, the price band of the Baazar Style Retail IPO is likely to be announced on August 27.
The IPO will remained open for public subscription between August 30 and September 3. Its allotment will be finalised on September 4, while the share listing will take place on the BSE and the NSE on September 6.
Style Baazar Retail will launch its anchor book for the IPO on August 29, 2024.
The net proceeds of the IPO will be utilised towards — 1) the repayment or repayment of all or a portion of certain outstanding borrowings availed by the company; and 2) General corporate purposes.
Under the offer-for-sale, Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares, Intensive Softshare Private Limited will offload 22.40 lakh shares, and Intensive Finance Private will divest 14.87 lakh shares, among others.
Axis Capital Limited, Intensive Fiscal Services Private Limited and JM Financial Limited are the book running lead managers of the Baazar Style Retail IPO, while Link Intime India Private Ltd is the registrar for the issue.
The company reported total income of Rs 982 crore in FY24, up 23 percent year-on-year (YoY) from Rs 794 crore. Its profit also jumped over four-fold or 320 percent YoY to Rs 21 crore in FY24 from Rs 5 crore in FY23, according to its RHP. Its return on equity (RoE) also rose to 10 percent in FY24, as compared to 3 percent a year back.
Baazar Style Retail, founded in June 2013, is one of the leading players in the value retail market, in West Bengal and Odisha, with a presence of 162 stores spread across over 1.47 million square feet as of March 31, 2024.
The company offers apparel for men, women, boys, girls, and infants and general merchandise such as non-apparels and home furnishing products. It focuses on providing a family-oriented shopping experience, offering quality products and striving to offer every Indian stylish merchandise at an affordable price.
As of March 31, 2024, the stores averaged 9,046 square feet and were staffed by trained employees to enhance customer experience.
According to Technopak report, value retail in the apparel segment in India was estimated to be around Rs 3.7 lakh crore in fiscal 2024. This market is expected to reach Rs 5.3 lakh crore by fiscal 2027, growing at a CAGR of 13.9 percet from fiscal 2023-27.