Rekha Jhunjhunwala-backed Bazaar Style Retail’s IPO opened for subscription today, August 30.
The price band for the shares is set between Rs 370 and Rs 389 per share, and investors can bid for a minimum of 38 shares in one lot and multiples thereof.
The IPO will remain open till September 3, with the total issue size set at Rs 835 crore.
This includes a fresh issue of Rs 148 crore and an offer for sale (OFS) of up to 1.76 million shares by existing shareholders including Rekha Jhunjhunwala and other prominent stakeholders.
What does Bazaar Style do?
Bazaar Style Retail is a value fashion retailer operating primarily in West Bengal and Odisha, with presence in other states like Assam, Bihar and Jharkhand.
The company focuses on offering affordable and stylish products for families. As of March 31, 2024, it operated 162 stores in nine states, with an average of 9,046 square feet per store.
For the financial year ended March 2024, Bazaar Style Retail reported a net profit of Rs 21.94 crore on revenue of Rs 982.83 crore.
The company’s growth strategy has focused on expanding its presence in Tier 3 and Tier 4 cities, leveraging a cluster-based expansion model.
Repayment of outstanding loans
The proceeds from the new issue will be used primarily to repay certain outstanding borrowings, with the remainder used for general corporate purposes.
Prior to the IPO, the company conducted a pre-IPO placement, raising Rs 37 crore, which led to a reduction in the size of the fresh issue.
Additionally, Bazaar Style Retail raised Rs 250.1 crore by allotting shares to anchor investors at Rs 389 per share.
Key investors include Ashoka India Equity Investment Trust, Volrado Venture Partners and HSBC Global, among others.
The lead managers of the issue are Axis Capital, Intensive Fiscal Services Private Limited and JM Financial Limited. Link Intime India Private Ltd is the registrar of the issue.
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