Baazar Style Retail IPO Details: Issue Date, GMP, Financials, and RHP Details
Baazar Style Retail IPO Details: Issue Date, GMP, Financials, and RHP Details
The Baazar Style Retail IPO is a book-built issue with a total value of Rs 834.68 crores. This consists of a fresh issue of 0.38 crore shares amounting to Rs 148.00 crores and an offer for sale of 1.77 crore shares totalling Rs 686.68 crores.
Baazar Style Retail opens on August 30, 2024, and closes on September 3, 2024. The allotment for this IPO is expected to be finalised by Wednesday, September 4, 2024. The IPO will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), tentatively on Friday, September 6, 2024.
The price band for the Baazar Style Retail IPO ranges from Rs 370 to Rs 389 per share. The minimum lot size for applications is 38 shares. The minimum investment amount for retail investors is Rs 14,782. For small Non-institutional Investors (sNII), the minimum lot size investment is 14 lots (532 shares), requiring Rs 206,948, while for big Non-Institutional Investors (bNII), it is 68 lots (2,584 shares), amounting to Rs 10,05,176.
Axis Capital Limited, Intensive Fiscal Services Private Limited, and JM Financial Limited are the book-running lead managers for the Baazar Style Retail IPO. Additionally, Link Intime India Private Ltd has been appointed as the registrar for the issue.
Main Details
| Particulars | Details |
| IPO Date | August 30, 2024 to September 3, 2024 |
| Face Value | Rs 5 per share |
| Price Band | Rs 370 to Rs 389 per share |
| Lot Size | 38 Shares |
| Total Issue Size | 2,14,56,947 shares (aggregating up to Rs 834.68 Cr) |
| Fresh Issue | 38,04,627 shares (aggregating up to Rs 148.00 Cr) |
| Offer for Sale | 1,76,52,320 shares of Rs 5 (aggregating up to Rs 686.68 Cr) |
| Employee Discount | Rs 35 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share-holding pre-issue | 7,08,10,966 |
| Share-holding post-issue | 7,46,15,593 |
Timeline and Tentative dates for major events
| IPO Open Date | Friday, August 30, 2024 |
| IPO Close Date | Tuesday, September 3, 2024 |
| Basis of Allotment | Wednesday, September 4, 2024 |
| Initiation of Refunds | Thursday, September 5, 2024 |
| Credit of Shares to Demat | Thursday, September 5, 2024 |
| Baazar Style IPO Listing Date | Friday, September 6, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 3, 2024 |
Shares offered to different Investor categories
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Baazar Style Retail IPO Lot size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 38 | Rs 14, 782 |
| Retail (Max) | 13 | 494 | Rs 1,92,166 |
| S-HNI (Min) | 14 | 532 | Rs 2,06,948 |
| S-HNI (Max) | 67 | 2,546 | Rs 9,90,394 |
| B-HNI (Min) | 68 | 2,584 | Rs 10,05,176 |
Style Baazar was incorporated on June 3, 2013, under the Companies Act of 1956, and its headquarters is located in Howrah, West Bengal. This multi-brand fashion hub has more than 135 stores in 9 Indian states, catering to men, women, and children of all ages and offering a wide range of stylish apparel and general merchandise.
The company showcases the latest fashion trends and has become a popular choice for fashion enthusiasts seeking trendy and affordable clothing. In the organised value retail market, it has emerged as one of the fastest-growing value retailers in eastern India, with a market share of 3.03% in West Bengal and 2.22% in Odisha. Since its incorporation, with only 2 stores, the company has expanded to 162 by fiscal year 2024, showing an impressive CAGR of 55.18%.
Revenue from operations increased from Rs 5,511.18 million in fiscal year 2022 to Rs 9,728.82 million in fiscal year 2024, indicating a CAGR of 32.86%. According to The Technopak Report, this growth surpasses the estimated compound annual growth rate (CAGR) of 19.3% in the overall lifestyle and home value retail market from fiscal year 2022 to fiscal year 2024.
Baazar Style has a robust support system from its shareholders, which includes the founders, board members, and senior management team. Additionally, the investors encompass well-known individuals such as Rekha Rakesh Jhunjhunwala, Kewal Kiran Clothing Limited, Manohar Lal Agarwal, the promoter of Haldiram Snacks, Boon-family office of Supreme Industries, Intensive Softshare Private Limited, D.K. Surana, Ajay Kumar Jain, and Sanjay Kumar Jain, who are partners of J.K. Jain Sparky (India) LLP.
Results from the financial statements of the company
| Period Ended | As of 31-03-2024 (amount in crores) |
| 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 |
Ratio analysis
| KPI | Values |
| Return on equity (ROE) | 10.74% |
| Return on capital employed (ROCE) | 18.39% |
| Debt/Equity | 0.76 |
| Return on net worth (RoNW) | 10.32% |
| Price to Book value (P/BV) | 12.78 |
| Profit after tax (PAT) Margin (%) | 2.23 |
At 8:27 AM on August 29th, 2024, the last observed Grey Market Premium (GMP) for the Baazar Style Retail IPO stands at Rs 125. The IPO’s price band ranges from Rs 370 to Rs 389.
Based on the current GMP, the estimated listing price for the Baazar Style Retail IPO is Rs 514, reflecting a potential gain/loss of 32.13% per share. The Retail Subject to Sauda for Baazar Style Retail IPO is Rs 3600. The small HNI subject to Sauda’s value is at Rs 50,400.
1. Risks associated with the business and industry
The company faces significant competition within the retail industry, which could result in narrower profit margins due to pricing pressures and a relatively small market share. Further, if it fails to successfully implement its e-commerce initiative, then its business could be impacted on an adverse note, as stated in its RHP.
2. Risks associated with technology
The business operations are dependent on the use of relevant technology. If the business is not able to upgrade timely, with the latest technology, then the business might face problems in the future.
3. Risks associated with financials
The company has plans to expand in the future, related to expenditure to be done on the growth and expansion. The expenditures for instance include enhancement and upgradation of technology, creating and maintaining multiple channels for sales, setting and operating up of stores, etc. So, if the company doesn’t get timely funds for its various growth activities, then it’s a risk for its business.
In the fiscal year 2022, the company has incurred a loss of Rs 800.7 lakhs. Any further loss in the future, may hinder the growth of the company.
4. Risks specific to objects of the offer
The company will receive only the proceeds from the fresh issue obtained from the general public. The company will not receive the amount obtained from the offer for sale. Only the shareholders will receive the proceeds from the offer for sale, in proportion to the number of shares held by each shareholder in the company. Further, a portion from the net proceeds will be utilised in paying loans taken by Axis Bank Limited.
Risks associated with legal and regulatory factors
The company has not obtained the necessary approvals to operate certain stores in India. The company is required to get licenses in the respective state/s it wants to expand. In addition, there may be certain licenses and approvals required for the purchase or lease of the property for establishing its stores. If the company fails to avail those regulations, it’s another risk factor for the company.
What are the objects from the proceeds of the fresh issue obtained by the company?
From the proceeds of the fresh issue, the company will be repaying its debt, i.e. loans taken from Axis Bank. Further, it will also be used for general corporate purposes.
Who are the lead managers of the Baazar Style Retail IPO?
The lead managers to the IPO are Intensive Fiscal Services Private Limited, JM Financial Limited, and Axis Capital Limited.
What is the Baazar Style IPO Listing Date?
The Baazar Style IPO Listing Date on the Stock exchanges is tentatively on Friday, September 6, 2024.
What is the Baazar Style Retail IPO Opening date?
The Baazar Style Retail IPO Opening date is on Friday, August 30, 2024.
What is the Baazar Style Retail IPO closing date?
The Baazar Style Retail IPO closing date is on Tuesday, September 3, 2024.
Where can you find the RHP and DRHP details of the Baazar Style Retail IPO?
The Red Herring Prospectus (RHP) and Draft Red Herring Prospectus (DRHP) of Baazar Style Retail IPO is filed with the Securities and Exchange Board of India (SEBI), and are uploaded on SEBI’s website.
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