If you have been following the booming retail fashion industry, gear up, as the much-awaited IPO of Bazaar Style Retail is set to hit the market today. This book-built issue, which will raise a substantial ₹834.68 crore, has already generated significant interest, with ₹250 crore mobilized from anchor investors before the launch. This positive development has further heightened anticipation for the IPO.
Let’s understand the key factors that the Bazaar Style Retail IPO has to offer.
₹250 crore Mobilized from Anchor Investors
Rekha Jhunjhunwala-backed Bazaar Style Retail successfully secured ₹250 crore in anchor investments ahead of its initial public offering (IPO). On August 29th, the company allocated 64,29,372 shares to anchor investors at a price of ₹389 per share. This allocation was finalized in consultation with the IPO Committee and the book-running lead managers.
Bazaar Style Retail IPO Details
| Offer Price | ₹370 – ₹389 per share |
| Face Value | ₹5 per share |
| Opening Date | 30 August 2024 |
| Closing Date | 3 September 2024 |
| Total Issue Size (in Shares) | 21,456,947 |
| Total Issue Size (in ₹) | ₹834.68 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 38 Shares |
| Listing at | BSE, NSE |
The Baazar Style Retail IPO consists of a total issue size of 21,456,947 shares, raising up to ₹834.68 crores. The offer includes a fresh issuance of 3,804,627 shares and an offer for sale of 17,652,320 shares. Employees are eligible for a discount of ₹35 per share. The IPO will be listed on both BSE and NSE. Post-issue, the company’s shareholding will increase from 70.81 million to 74.62 million.
The minimum lot size for an application is 38 Shares, and the minimum investment required by retail investors is ₹14,782. For High-Net-Worth Individuals (HNIs), the minimum lot size investment is 14 lots (532 shares) for sNII and 68 lots (2,584 shares) for bNII, amounting to ₹206,948 and ₹1,005,176, respectively.
Objectives of the IPO
- Debt Reduction: Prepaying or repaying outstanding loans to improve financial stability and reduce interest expenses.
- General Corporate Purposes: Funding working capital, operational costs, and strategic initiatives to support growth and operational efficiency.
IPO Allocation of Shares
Investors must bid for a minimum of 38 shares, with additional bids accepted in increments of 38 shares. The table below outlines the investment limits for retail investors and HNIs.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 38 | ₹14,782 |
| Retail (Max) | 13 | 494 | ₹192,166 |
| S-HNI (Min) | 14 | 532 | ₹206,948 |
| S-HNI (Max) | 67 | 2,564 | ₹990,394 |
| B-HNI (Min) | 68 | 2,584 | ₹1,005,176 |
Retail investors can participate with a minimum investment of ₹14,782. High-net-worth individuals (HNIs) have tailored investment options with varying lot sizes and minimum amounts.
Key Dates
| IPO Open Date | 30th August, 2024 |
| IPO Close Date | 3rd September, 2024 |
| Allotment Date | 4th September, 2024 |
| Initiation of Refunds | 5th September, 2024 |
| Credit of Shares to Demat | 5th September, 2024 |
| Listing Date | 6th September, 2024 |
Grey Market Premium (GMP):
Based on recent market data, the Baazar Style Retail IPO is expected to list at around ₹519 per share, a premium of 33.42% compared to the issue price of ₹389. This estimate is calculated by adding the grey market premium of ₹130 to the upper price band of the IPO.
Company Overview
Bazaar Style Retail, a leading fashion retailer based in eastern India, has established a strong regional presence with its diverse apparel and general merchandise range. Operating a network of 162 stores across nine states, the company has successfully catered to the needs of customers seeking quality products at affordable prices.
Known for its commitment to customer satisfaction, Bazaar Style Retail has built a loyal customer base by focusing on providing a pleasant shopping experience. The company’s dedicated team of professionals ensures that its product offerings remain relevant and appealing to the target market. Bazaar Style Retail remains a prominent player in the fashion retail industry with a strong foothold in eastern India.
Financials
As of March 31, 2024, Baazar Style Retail Limited showcased robust financial health. The company’s total assets expanded to ₹1,165.97 crores, and revenue increased to ₹982.83 crores, reflecting steady growth. While the Profit After Tax (PAT) of ₹21.94 crores indicated moderate profitability, the company maintained a sound financial position.
Bazaar Style Retail Ltd (Restated Consolidated) Figures
| Period Ended | 31 Mar 2024 |
| Assets | 1,165.97 |
| Revenue | 982.83 |
| Profit After Tax | 21.94 |
| Net Worth | 212.56 |
| Reserves and Surplus | 180.2 |
| Total Borrowing | 178.23 |
A net worth of ₹212.56 crores, supported by reserves and a surplus of ₹180.2 crores, further strengthened its financial standing. Moreover, the company’s debt-to-equity ratio remained manageable at ₹178.23 crores, demonstrating a prudent approach to financing. Baazar Style Retail’s financial performance suggests a solid foundation for future growth and expansion.
SWOT Analysis of Bazaar Style Retail
| STRENGTHS | WEAKNESSES |
| Regional Concentration: The company’s operations are concentrated in eastern India, making it vulnerable to regional economic downturns. Limited Geographical Expansion: While the company has a strong presence in eastern India, it has limited operations in other regions. | Intense Competition: The fashion and retail industry is highly competitive, with numerous players vying for market share. Supplier Disruptions: Factors such as supply chain issues or price fluctuations could disrupt the company’s reliance on third-party suppliers. Economic Downturns: Adverse economic conditions in the regions where Bazaar Style Retail operates could impact consumer spending and negatively affect sales. |
| OPPORTUNITIES | THREATS |
| Expansion into New Regions: Bazaar Style Retail can explore opportunities to expand its operations into other parts of India, capturing a larger market share. Online Retail: The company can leverage the growing e-commerce market to reach a wider customer base and increase sales. Product Diversification: Bazaar Style Retail can expand its product offerings to include new categories or brands to attract more customers. | Expansion into New Regions: Bazaar Style Retail can explore opportunities to expand its operations into other parts of India, capturing a larger market share. Online Retail: The company can leverage the growing e-commerce market to reach a wider customer base and increase sales. Product Diversification: To attract more customers, Bazaar Style Retail can expand its product offerings to include new categories or brands. |
Conclusion
The company is well-positioned for continued growth with a solid regional presence, a diverse product range, and a focus on customer satisfaction. While the IPO offers promising prospects, potential investors should conduct thorough due diligence and consider their financial goals before making investment decisions. It is advisable to consult with a financial advisor to assess whether the Bazaar Style Retail IPO aligns with your investment strategy.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
