Baazar Style Retail Limited, a value-driven fashion retailer known for offering quality and affordable products in the apparel and general merchandise segments, has set the price band for its initial public offering (IPO) at ₹370 to ₹389 per equity share, with a face value of ₹5 each. The IPO will be open for subscription from Friday, August 30, 2024, to Tuesday, September 3, 2024. Investors can place bids starting from a minimum of 38 equity shares, with additional bids in multiples of 38 shares.
The IPO consists of fresh issue of up to Rs 148 crore and an offer for sale (OFS) of up to 1,76,52,320 equity shares by Promoter Group Selling Shareholders and Investor Selling Shareholders.
The proceeds from the fresh issue to the extent of Rs 146 crore for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company; and general corporate purposes.
Earlier, this month, Baazar Style Retail Limited had undertaken a private placement of 9,56,072 equity shares to Volrado Ventures Partners Fund II at an issue price of Rs 387 per equity share (including a premium of Rs 382 per equity share) aggregating to Rs 37 crore. Accordingly, the fresh issue is reduced.
Incorporated in 2013, Style Baazar held a market share of 3.03% in West Bengal and 2.22% in Odisha within the organized value retail market, according to The Technopak Report. It boasts the largest retail footprint in Eastern India compared to listed value retailers as of Fiscal 2024. Between 2017 and 2024, Style Baazar was the fastest-growing value retailer in terms of both store count and revenue, outpacing competitors like V2 Retail Limited and V-Mart Retail Limited. Most of its stores operate under the ‘Style Bazaar’ brand, which has cultivated strong customer loyalty and recognition through its diverse product offerings.
The Kolkata-based retailer offers a broad range of products across two key verticals: apparel and general merchandise. The apparel segment includes garments for men, women, boys, girls, and infants, while the general merchandise segment features non-apparel items and home furnishings. Committed to providing a family-oriented shopping experience, Style Baazar focuses on delivering quality products at affordable prices, aiming to offer stylish merchandise for every Indian.
As of March 31, 2024, its stores had an average size of 9,046 square feet with trained staff to enhance customer experience.
Its product portfolio includes both apparels and general merchandise including cosmetics and imitation jewellery, consumer appliances, houseware products and bags, as highlighted below. The portfolio of apparels includes shirts, t-shirts, trousers, sarees, sports and active wear, winter wear, night wear, western ware, ethnic wear and accessories catering to the needs of men, women, children, and youngsters.
Baazar Style Retail’s consolidated revenue from operations stood at ₹972.88 crore in fiscal 2024 and Profit after tax stood at ₹21.94 crore in fiscal 2024.
Axis Capital Limited, Intensive Fiscal Services Private Limited, and JM Financial Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
The Offer is being made through the Book Building Process, wherein not less than 50% of the Net Offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the offer shall be available for allocation to Non-Institutional Bidders and not more than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
