Baazar Style Retail Ltd, a value fashion retailer, is set to launch its Initial Public Offering (IPO) on August 30, aiming to raise Rs 835 crore. The company, backed by billionaire investor Rekha Jhunjhunwala, is poised for a significant expansion with this move.
IPO Details and Price Band
The IPO will include a fresh issue of equity shares worth Rs 148 crore and an Offer for Sale (OFS) of up to 1.76 crore shares, valued at Rs 687 crore at the upper end of the price band. Baazar Style Retail has set a price band of Rs 370-389 per share. Public subscription for the initial share sale will be open from August 30 to September 3. Investors can bid for a minimum of 38 shares per lot, with additional shares available in multiples of 38.
Key Investors and Stake Divestment
Under the OFS, several stakeholders, including Rekha Jhunjhunwala, Intensive Softshare Private Ltd, and Intensive Finance Private Ltd, will divest part of their stakes. This strategic divestment aligns with the company’s expansion goals and provides an opportunity for new investors to participate in the company’s growth.
Recent Pre-IPO Fundraising
Earlier this month, Baazar Style Retail raised Rs 37 crore from Volrado Ventures Partners Fund II in a pre-IPO placement round. This fundraising highlights investor confidence in the company’s growth trajectory and its strong market presence.
Market Presence and Expansion Plans
Baazar Style Retail is a leading player in the value retail market, particularly in West Bengal and Odisha. The company is also expanding its footprint into other key markets, including Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh, to strengthen its position further.
Financial Performance
The company reported consolidated revenue from operations of Rs 972.88 crore for fiscal 2024, with a profit after tax of Rs 21.94 crore. This financial performance underscores Baazar Style Retail’s robust market standing and operational efficiency.
Rekha Jhunjhunwala’s Investment Portfolio
Rekha Jhunjhunwala, widow of the late Rakesh Jhunjhunwala, inherited a substantial stock portfolio from her husband. At 60, she has a real-time net worth of USD 8.8 billion, according to Forbes. Her investments span both listed and unlisted companies, with Baazar Style Retail being one of her notable holdings.
Lead Managers for the IPO
Axis Capital, Intensive Fiscal Services, and JM Financial have been appointed as the book-running lead managers for the IPO. Their role will be crucial in ensuring a successful public offering as Baazar Style Retail prepares for its market debut.
