Baazar Style Retail IPO Opens On 30 Aug To Raise Over 800 Cr

The initial public offering (IPO) of Baazar Style Retail opened for public subscription on 30 August in an attempt to raise over Rs 800 crore from the public market. 

The Rs 834.68 crore IPO consisted of fresh issues of up to Rs 148 crore and an offer-for-sale (OFS) worth Rs 686.68 crore by promoter and investor selling shareholders. 
 

The price band for the issue is fixed at Rs 370 to 389 per equity share. Retail investors can bid for a maximum of 13 lots where one lot containing 38 shares requires a minimum capital of 14,782. 

The issue opened on 27 August and will be closed on 30 August. The allotment for the issue will be finalised on 04 September followed by its listing on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on 06 September. 

Axis Capital, Intensive Fiscal Services and JM Financial are the book running lead manager and Link Intime India is the registrar to the offer. 

Experts View
At the upper price band of Rs 389, the issue is available at market cap of 3 times (FY24), which appears to be reasonably priced compared to its peers. Considering the rise in demand, aggressive store additions, customer retention, cluster based expansion model, and positive industry growth opportunities, we assign a ‘subscribe’ rating on a short to medium term basis,” stated Geojit Financials. 

IPO Objectives
The net proceeds of Rs 113.7 crore from the fresh issue will be utilised towards debt repayment. The debt to equity ratio will trim down to 0.1x timespost IPO.

Additionally the funds will also be used for funding capital expenditure requirements for purchase of equipment and general corporate purposes.

Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders. 

Firm’s Financials

Revenue from operations grew at a compounded annual growth rate (CAGR) of 33 per cent over FY22-24 to Rs 973 crore , led by increased sales volume supported by a rise in store additions and demand.

EBITDA grew by 40 per cent year-on-year (YoY), while EBITDA margins expanded by 170 basis points YoY in FY24, led by better operating efficiency.

As of 31 March FY24, the total debt stood at Rs 178.2 crore.