The issue was subscribed 4.64 times on the second day of bidding
MUMBAI, Sep 2 (The CONNECT) – The Initial Public Offering of Rekha Jhunjhunwala-backed Baazar Style Retail Limited was subscribed 4.64 times on the second day of bidding, today.
The company’s brand Style Baazar enjoys the largest retail footprint and was the fastest growing value retailer between 2017 to 2024, in terms of both store count and revenue from operations, as per The Technopak Report.
The issue, at a price band of ₹370-389, received bids of 6,97,01,728 shares against the offered 1,50,30,116 equity shares, according to the data available on the stock exchanges.
A day before its issue opening, Baazar Style Retail Ltd raised Rs 250.10 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were HSBC Global Investment Funds, Natixis International Funds, Optimix Wholesale Global Emerging Markets Share Trust, Allianz Global Investors Fund, and Societe Generale,HDFC Mutual Fund, Ashoka India Equity Investment Trust Plc, Whiteoak Capital, Volrado Venture Partners Fund, Bandhan Mutual Fund, Motilal Oswal Mutual Fund, Bajaj Allianz Life Insurance Company, SBI General Insurance Company, Helios Flexi Cap Fund, Trust Mutual Fund, Julius Baer India Equity Fund, Reliance General Insurance Company, and Verition Multi-Strategy Master Fund.
Leading brokerage firms like Nirmal Bang, Deven Choksey Research, Master Capital, Arihant Capital, BP Wealth Equities, and StoxBox have given a “Subscribe” rating to the issue highlighting the company’s good market share in West Bengal and Odisha which is also backed by its focus to grow in tier 3 & tier 4 cities. It operates 162 stores across 146 cities, making it the largest value retailer in the region.
The overall lifestyle and home value retail market grew at CAGR of ~19.3% during the same period. As per EV/EBIDTA basis of 21.5x FY24 earnings, it looks reasonable vs industry average of 28x. Most brokerages recommend subscribing to the IPO, with a view towards long-term investment.
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.
