Baazar Style Retail IPO aims to raise ₹835 cr

Rekha Jhunjhunwala-backed Baazar Style Retail, a value fashion retailer, on Monday said it has fixed a price band of ₹370-389 per share for its Initial Public Offering (IPO), which will open for public subscription on August 30.

The IPO aims to raise around ₹835 crore at the upper price band and includes a fresh issue of up to ₹148 crore. Promoter group entities and other selling shareholders intend to sell up to 1.76 crore shares, valued at around ₹687 crore at the upper end of the price band, through offer for sale (OFS).

Under the OFS, Rekha Jhunjhunwala, Intensive Softshare and Intensive Finance, among others, will divest their part stakes.

The proceeds from the fresh issue, to the extent of around ₹146 crore, will be used for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and general corporate purposes.

• Also read: Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail files DRHP with SEBI for IPO

Private placement

The Kolkata-based company earlier this month undertook a private placement of around 9.56 lakh equity shares to Volrado Ventures Partners Fund II at an issue price of ₹387 per equity share (including a premium of ₹382 per equity share), aggregating to ₹37 crore. Accordingly, the fresh issue is reduced.

Baazar Style Retail’s promoters are Pradeep Kumar Agarwal, Rohit Kedia, Shreyans Surana, Bhagwan Prasad, Rajendra Kumar Gupta, Rajendra Kumar Gupta (HUF) and Sri Narsingh Infrastructure.

The IPO is being made through the book building process, wherein not less than 50 per cent of the net offer shall be available for allocation to qualified institutional buyers, not more than 15 per cent of the offer shall be available for allocation to non-institutional bidders and not more than 35 per cent of the offer shall be available for allocation to retail individual bidders.

The offer will close on September 3. Investors can bid for a minimum of 38 equity shares and in multiples of 38 equity shares thereafter. A discount of 35 per equity share will be offered to eligible employees of the company.

Incorporated in 2013, Style Baazar had market share of 3.03 per cent and 2.22 per cent, respectively, in the organised value retail market in West Bengal and Odisha, as per the Technopak Report. It has the largest retail footprint in Eastern India when compared to the listed value retailers in FY24.

The company’s consolidated revenue from operations stood at ₹972.88 crore in FY24 and profit after tax stood at ₹21.94 crore in the same period.

Axis Capital, Intensive Fiscal Services and JM Financial are the book running lead managers. The equity shares are proposed to be listed on BSE and NSE.