Baazar Style Retail Ltd, a value fashion retailer based in Kolkata, is set to launch its initial public offering (IPO) next week, either on Friday, August 30, or Monday, September 2. This IPO is supported by well-known investor Rekha Jhunjhunwala. The price range for the shares will be announced on either Monday, August 26, or Tuesday, August 27, according to market sources.
IPO Details
Baazar Style Retail Ltd had filed its draft red herring prospectus (DRHP) in March. The IPO will include a fresh issue of equity shares worth ₹185 crore and an offer for sale (OFS) of up to 1.68 crore shares by the promoter group and other shareholders. There is also an option for eligible employees to buy shares.
Rekha Rakesh Jhunjhunwala plans to sell 27.23 lakh equity shares in the OFS. Other sellers include Intensive Softshare Private Ltd with 22.40 lakh shares and Intensive Finance Pvt Ltd with 14.87 lakh shares. Additional shareholders like Chandurkar Investments, Subroto Trading & Finance Company Ltd, and others will also be selling their shares.
Pre-IPO Funding
In August, Baazar Style Retail raised ₹37 crore from Volrado Ventures Partners Fund II in a pre-IPO round. This funding reduced the size of the IPO from ₹185 crore to ₹148 crore.
Business Overview
Baazar Style Retail is particularly strong in the value retail market in West Bengal and Odisha and has a presence in Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh. The company had 153 stores as of December 31, 2023.
For the fiscal year 2023, Baazar Style Retail reported a profit of ₹5.10 crore, a significant improvement from a net loss of ₹8.01 crore the previous year. The company’s operating revenue also grew, reaching ₹787.90 crore in 2023, up from ₹551.12 crore in 2022.
Lead Managers
The book-running lead managers for this IPO are Axis Capital, Intensive Fiscal Services, and JM Financial.
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