Value fashion retailer Baazar Style Retail Ltd has made a significant move ahead of its much-awaited initial public offering (IPO). Just a day before the IPO opens for public subscription, the company has successfully raised a whopping Rs 250 crore from anchor investors, showcasing strong market confidence.
 "Baazar Style Scores Big: Lands Rs 250 Cr from Top Investors!")
Key Details of the Funding of Baazar Style Retail
Baazar Style Retail managed to entice a wide array of notable investors, including Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund IV Gamma, HSBC Global Investment Funds, Allianz Global Investors Fund, Al Mehwar Commercial Investments LLC, HDFC Mutual Fund, HSBC Mutual Fund, Bandhan Mutual Fund, and Bajaj Allianz Life Insurance Company. According to the data posted on the BSE website, the company allotted 64.29 lakh equity shares to these 28 funds at a price of Rs 389 per share, totaling Rs 250.1 crore.
IPO Opening of Baazar Style Retail and Price Details
Key Dates and Price Band of Baazar Style Retail IPO
The Rs 835-crore IPO is set to open on August 30 and will remain open for public subscription until September 3. The price band for the IPO has been set at Rs 370 to Rs 389 per share.
Fresh Issue and Offer for Sale (OFS)
The IPO includes a fresh issue of equity shares worth Rs 148 crore and an offer for sale (OFS) of up to 1.76 crore shares, valued at Rs 687 crore (calculated at the upper range of the price band). This brings the total issue size to Rs 835 crore. Prominent entities including Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, and Intensive Finance Pvt Ltd will be divesting their stakes through the OFS.
Use of IPO Proceeds
From the fresh issue, Rs 146 crore will be directed towards debt repayment, while the remaining funds will be earmarked for general corporate needs.
Pre-IPO Placement and Regional Influence
Earlier in the month, the Kolkata-based retailer secured Rs 37 crore from Volrado Ventures Partners Fund II through a pre-IPO placement, leading to a reduction in the size of the fresh issue.
Baazar Style Retail is a leading player in the value retail segment in West Bengal and Odisha. Besides these core markets, the company is also expanding its reach into Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh.
Investor’s Guide for Baazar Style Retail IPO
For those interested in participating, the minimum bid lot is set at 38 shares, and bids can only be made in multiples of 38 shares.
Financial Performance
Baazar Style Retail has shown solid financial performance. For the fiscal year 2023-24 (FY24), the company reported consolidated revenue from operations amounting to Rs 972.88 crore, with a profit after tax standing at Rs 21.94 crore.
Lead Managers
To ensure a smooth and successful IPO process, the company has appointed Axis Capital, Intensive Fiscal Services, and JM Financial as the book-running lead managers.
Stay tuned as this major IPO unfolds, bringing a wave of new opportunities for investors and marking a significant milestone for Baazar Style Retail Ltd.
