The IPO will consist of a fresh issue of up to Rs 148 crore and an offer for sale of up to 1.76 crore shares by the promoter group and other selling shareholders. At the upper end of the price band of Rs 389, the total issue size will be Rs 835 crore.
Investors can bid on a minimum of 38 shares in one lot, with additional shares available in multiples of 38.
Star investor Rekha Jhunjhunwala will sell 2.72 million shares in the IPO. Other selling shareholders include Intensive Softshare, Intensive Finance, Chandurkar Investments, Rajnish Gupta, DK Surana HUF, as well as promoters Madhu Surana, Subroto Trading & Finance, Sabita Agarwal, Rekha Kedia and Shakuntala Devi.
Earlier this month, the company made a private placement of 9,56,072 equity shares to Volrado Ventures Partners Fund II at an issue price of Rs 387 per share, for a total of Rs 37 crore. The proceeds of the IPO would be used to offset borrowings and for general corporate purposes. Kolkata-based Baazar Style Retail is a value fashion retailer with the largest retail presence in Eastern India and holds leading positions in the organised value retail market in West Bengal and Odisha. The company has a market share of 3.03% in West Bengal and 2.22% in Odisha in the organised value retail sector.
Baazar Style Retail is backed by investors such as Rekha Rakesh Jhunjhunwala (wife of late Rakesh Jhunjhunwala), Kewal Kiran Clothing Limited, Manohar Lal Agarwal (promoter of Haldiram Snacks), Boon Family Office (associated with Supreme Industries), Intensive Softshare Private Limited, DK Surana, Ajay Kumar Jain and Sanjay Kumar Jain (partners at JK Jain Sparky (India) LLP).
The company operates a cluster-based expansion model, opening new stores within the same district or in nearby districts where it already has a presence. The number of stores reached 162 by the end of fiscal year 2024.
The company’s operating income increased from Rs 551 crore in FY22 to Rs 973 crore in FY24, reflecting a CAGR of 32.86%. In comparison, the overall lifestyle and value home retail market is estimated to have grown at a CAGR of 19.3% between FY22 and FY24.
The lead book-running managers for the IPO are Axis Capital, Intensive Fiscal Services and JM Financial.
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