Bazaar Style Retail IPO: Check all details of Rekha Jhunjhunwala-backed issue

Rekha Rakesh Jhunjhunwala-backed Bazaar Style Retail will launch its initial public offering (IPO) on Friday, August 30. The company will be offering its shares in the range of Rs 370-389 per share. Investors can subscribe to the issue until Tuesday, September 3, bidding for a minimum of 38 equity shares and its multiples thereafter.
 

Bazaar Style Retail is a fashion retailer operating in West Bengal and Odisha. It 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.
 

The IPO of Bazaar Style Retail includes a fresh shares sale of Rs 148 crore and an offer-for-sale of (OFS) up to 1,76,52,320 equity shares by its promoters and existing shareholders amounting to Rs 686.67 crore. At the upper end of the price band, the company is looking to raise a total of Rs 834.67 crore via IPO. Anchor book for the issue opens on Thursday, August 29.
 

Investors participating on OFS include names Rekha Rakesh Jhunjhunwala, Intensive Softshare, Intensive Finance, Chandurkar Investments, Madhu Sunara, Sabita Agarwal, Subroto Trading & Finance Company, Rajnish Gupta, Rekha Kedia, DK Surana HUF and Shakuntala Devi.
 

The net proceeds from the issue shall be utilized towards prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and general corporate purposes. The company, in consultation with managers of the issue, undertook a pre-IPO placement of Rs 37 crore, resulting in reduction of fresh issue size of Rs 148 crore.
 

Incorporated in 2013, Bazaar Style Retail stores averaged 9,046 square feet and were staffed by trained employees to enhance customer experience as of March 31, 2024. The company operates in Odisha, Bihar, Assam, Jharkhand, Andhra Pradesh, Uttar Pradesh, Tripura, and Chhattisgarh. It has expanded across 9 states and operates 162 stores as of March 31, 2024.
 

Baazar Style Retail reported a net profit of Rs 21.94 crore with a revenue of Rs 982.83 crore for the financial year ended on March 31, 2024. The company's grey market premium (GMP) stood at Rs 130-135 per share, suggesting gains of about 34 per cent over the upper end of the price band.
 

Baazar Style Retail has reserved shares worth Rs 1 crore for the eligible employees of the company, who will get a discount of Rs 35 per share. 50 per cent of the net offer has been reserved for the qualified institutional bidders (QIBs), while retail investors will have 35 per cent of the allocations. Remaining 15 per cent of the net off shall go to non-institutional investors (NIIs).
 

Axis Capital, Intensive Fiscal Services and JM Financial are the book running lead managers of the Baazar Style Retail IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with Friday, September 6 as the tentative date of listing.