Rekha Jhunjhunwala-Backed Baazar Style Retail Sees Slipping GMP: Will Friday’s Listing Deliver or Disappoint?

The shares of Baazar Style Retail, backed by Rekha Jhunjhunwala, are set to debut on the stock exchanges this Friday. Before the listing, the company’s shares are trading at a grey market premium (GMP) of ₹45. Based on the IPO’s upper price band of ₹389, investors can expect moderate listing gains of around 12%.

However, it’s important to remember that grey market premiums are just an indication of how a stock is performing in the unlisted market, and these figures can change quickly.

Baazar Style’s IPO received a strong response from investors, with the overall subscription reaching nearly 41 times. The company plans to use the funds raised from the IPO to pay off loans and for general corporate needs.

Based in Kolkata, Baazar Style Retail is a leading value fashion retailer, especially in Eastern India. It holds top market positions in West Bengal and Odisha in the organized retail space. As of March 31, 2024, the company had 162 stores spread over 1.47 million square feet in 146 cities, operating under the brand name “Style Bazaar.” It has a market share of 3.03% in West Bengal and 2.22% in Odisha.

Investors in the company include Rekha Rakesh Jhunjhunwala, Kewal Kiran Clothing, and Manohar Lal Agarwal, the promoter of Haldiram Snacks. The company’s revenue has grown significantly, from ₹551 crore in FY22 to ₹973 crore in FY24, showing a compound annual growth rate (CAGR) of 32.86%. During this period, the lifestyle and home value retail market grew at a CAGR of 19.3%.

Axis Capital, Intensive Fiscal Services, and JM Financial are the lead managers of the IPO.