2,902.55 Crore Market Cap: 6 Factors Behind Baazar Style Retail Share Valuation
Baazar Style Retail has made headlines today as its shares began trading on the National Stock Exchange (NSE) after a flat listing. The stock opened at ₹389, the same as its issue price, but quickly gained momentum, trading 7.3% higher shortly after. This surge highlights the strong interest from investors despite initial expectations of a modest debut.
Main Points
IPO Details and Market Performance
Baazar Style Retail’s initial public offering (IPO) was a significant event. The company raised ₹834.68 crores through the IPO, which included a fresh issue of ₹148 crores and an offer for sale of ₹686.68 crores. The shares were offered in a price band of ₹370 to ₹389. The IPO was highly successful, being subscribed 40.66 times overall, with qualified institutional buyers (QIBs) leading the charge, subscribing 81.83 times their allocation. Non-institutional investors and retail investors followed, subscribing 59.43 times and 9.12 times, respectively.
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIBs) | 81.83 times |
| Non-Institutional Investors (NIIs) | 59.43 times |
| Retail Investors | 9.12 times |
Trading Day Highlights
On its debut day, Baazar Style Retail’s shares opened flat at ₹389. However, as trading progressed, the stock rose to ₹417, reflecting a 7.3% increase. Analysts had predicted a listing gain of about 10-15%, but the stock’s performance indicates strong market confidence.
Market analysts like Prashanth Tapse from Mehta Equities noted that despite the high valuations, the positive market sentiment contributed to the stock’s upward movement. Investors were advised to consider booking profits on the listing day, given the initial surge in share price.
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Company Background
Baazar Style Retail is a prominent player in the value fashion retail sector in India. Headquartered in Howrah, West Bengal, the company operates over 162 stores across nine states. It caters to a diverse customer base, offering a wide range of apparel and general merchandise for men, women, and children.
The company’s revenue from operations for the financial year 2024 was ₹973 crores, with a profit of ₹22 crores. This growth trajectory positions Baazar Style Retail as a strong contender in the competitive retail market.
Future Prospects
Looking ahead, Baazar Style Retail plans to utilize the funds raised from the IPO to reduce its debt and for general corporate purposes. The company aims to expand its operations and enhance its market presence. Analysts believe that the company’s strategic initiatives and robust financial performance make it a promising investment opportunity for the medium to long term.
