Baazar Style Share Price: Why Bazaar Style IPO Listing at Rs 389 Could Be a Game-Changer – 4 Predictions
Baazar Style Retail has made its much-anticipated debut on Dalal Street, listing at ₹389 per share on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This marks a significant moment for the company as it enters the public market, backed by notable investors like Rekha Jhunjhunwala.
Main Points
IPO Overview
The Initial Public Offering (IPO) of Baazar Style Retail was open for subscription from August 30 to September 3, 2024. The company aimed to raise ₹834.68 crore through this offering, which included a fresh issue of ₹148 crore and an offer for sale of ₹686.68 crore. The shares were offered in a price band of ₹370 to ₹389, with a minimum order quantity set at 38 shares.
Subscription Details
The IPO received an overwhelming response from investors, achieving a subscription rate of nearly 41 times. This high demand reflects the market’s confidence in Baazar Style’s business model and growth potential. The company intends to use the proceeds from the IPO for repaying borrowings and for general corporate purposes.
| IPO Details | Information |
|---|---|
| Opening Date | August 30, 2024 |
| Closing Date | September 3, 2024 |
| Issue Type | Book Built Issue |
| Face Value | ₹5 per equity share |
| Price Band | ₹370 to ₹389 |
| Total Issue Size | ₹834.68 crore |
| Fresh Issue Size | ₹148 crore |
| Offer for Sale Size | ₹686.68 crore |
Company Profile
Baazar Style Retail is a value fashion retailer based in Kolkata. It has established itself as a significant player in the organized retail market in Eastern India, particularly in West Bengal and Odisha. As of March 31, 2024, the company operates 162 stores across 146 cities, covering over 1.47 million square feet under the brand name “Style Bazaar.”
Market Position
The company holds a market share of 3.03% in West Bengal and 2.22% in Odisha. Baazar Style targets the aspiring middle class, offering a wide range of apparel and general merchandise. Its revenue has shown impressive growth, increasing from ₹551 crore in FY22 to ₹973 crore in FY24, reflecting a compound annual growth rate (CAGR) of 32.86%.
| Financial Performance | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue (₹ crore) | 561.14 | 794.39 | 982.83 |
| Profit Before Tax (₹ crore) | -10.05 | 5.41 | 29.22 |
| Net Profit (₹ crore) | -8.01 | 5.10 | 21.94 |
Market Debut
On its debut day, Baazar Style Retail’s shares opened flat at ₹389, which is at the upper end of its IPO price band. Despite the muted start, analysts remain optimistic about the company’s future prospects. The stable opening indicates a cautious yet positive reception from investors.
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Investor Sentiment
The overall sentiment in the market has been mixed. While the high subscription rate indicates strong investor interest, the flat listing suggests that some investors may be adopting a wait-and-see approach. Analysts emphasize that the grey market premium is just an indicator and can fluctuate rapidly.
Future Prospects
Baazar Style Retail plans to use the funds raised from the IPO to strengthen its financial position. This includes repaying outstanding borrowings, which will help improve its balance sheet. The company is well-positioned to capitalize on the growing demand for value fashion retail in India.
Competitive Landscape
The organized retail sector in India is witnessing significant growth, driven by changing consumer preferences and increased spending power among the middle class. Baazar Style’s focus on value and quality makes it a strong contender in this competitive landscape.
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