Rekha Jhunjhunwala-backed Baazar Style Retail Nets ₹250 Crore from Anchor Investors Ahead of IPO Launch

Baazar Style Retail Ltd, supported by Rekha Jhunjhunwala, has successfully raised ₹250 crore from anchor investors just a day before its IPO opens for public subscription.

Key Anchor Investors

The company attracted investments from prominent names like Ashoka India Equity Investment Trust Plc, HSBC Global Investment Funds, Allianz Global Investors Fund, HDFC Mutual Fund, and Bajaj Allianz Life Insurance Company. In total, 64.29 lakh equity shares were allotted to 28 funds at ₹389 per share, bringing in ₹250.1 crore.

Details of the Upcoming IPO

The ₹835 crore IPO will be open for subscription from August 30 to September 3, with a price band of ₹370-389 per share. The IPO comprises a fresh issue of equity shares worth ₹148 crore and an offer for sale (OFS) of up to ₹687 crore by the company’s promoters and other shareholders.

Purpose of the Fundraising

The proceeds from the fresh issue will be used primarily to repay ₹146 crore of the company’s debt, with the remainder earmarked for general corporate purposes. A recent pre-IPO placement with Volrado Ventures Partners Fund II raised ₹37 crore, resulting in a reduction in the fresh issue size.

Market Presence and Focus Areas

Baazar Style Retail is a leading player in the value retail market, particularly in West Bengal and Odisha, with additional focus markets including Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh.

Investment Opportunities

Investors can bid for a minimum of 38 shares per lot, with the option to purchase additional shares in multiples of 38. For FY24, the company reported a consolidated revenue of ₹972.88 crore and a profit after tax of ₹21.94 crore.

Lead Managers of the IPO

Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers for the IPO, overseeing the process as Baazar Style Retail enters the public market.