August 30, 2024
New Delhi, India
Baazar Style Retail IPO
Baazar Style Retail, a value fashion retailer backed by Rekha Jhunjhunwala, launched its Initial Public Offering (IPO) today, August 30, aiming to raise ₹250 crores from anchor investors. The IPO is set to close on Tuesday, September 3, with shares priced between ₹370-389 each.
Earlier in August, the Kolkata-based retailer secured ₹37 crore from Volrado Ventures Partners Fund II in a pre-IPO placement, which reduced the size of the fresh issue. Baazar Style Retail offers a variety of affordable apparel and general merchandise through its chain of ‘value retail’ stores.
IPO Subscription Details and Share Allocation
- IPO Period: August 30 to September 3
- Price Range: ₹370-389 per share
- Minimum Bid Lot: 38 shares per lot; additional bids in multiples of 38
- Allocation:
- 50% for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail Investors
- Employee reservation discount of ₹35 per share
Also Read: Moody’s Raises India’s GDP Growth Forecast to 7.2% for 2024
The IPO includes a fresh issuance of ₹148 crore and an Offer for Sale (OFS) by the company’s shareholders and promoters, totaling up to 17.65 million shares. The OFS amounts to ₹687 crore at the upper price band, bringing the total issue size to ₹834.68 crore.
Also Read: Premier Energies IPO Allotment Likely Today: How To Check Status?
Company Overview and Performance
Founded in June 2013, Baazar Style Retail Ltd operates fashion retail stores in West Bengal and Odisha, offering clothing for all age groups and a variety of household items. As per BSE data, the IPO received bids for 39,12,518 shares against an offer of 1,50,30,116 shares, with a 43% subscription from retail investors and an 18% subscription from non-institutional investors. The employee portion was subscribed 3.63 times, while the QIB portion is yet to be fully booked.
Use of IPO Proceeds
The company plans to use the IPO funds to prepay or repay outstanding loans and for general corporate purposes.
Market Response and Grey Market Premium
The IPO is managed by lead managers Axis Capital Ltd, Intensive Fiscal Services Private Ltd, and JM Financial Ltd, with Link Intime India Private Ltd as the registrar. According to investorgain.com, the grey market premium for Baazar Style Retail shares is currently at ₹126 as of 1 P.M IST, indicating strong interest and a premium over the issue price.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
