Rs.834.68 Crore Raised: Analyzing Baazar Style Retail IPO Success in 6 Points

The much-anticipated Baazar Style Retail IPO listing has finally arrived. The shares of Baazar Style Retail, backed by the esteemed investor Rekha Jhunjhunwala, are set to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) today, September 6, 2024. Investors have been eagerly waiting for this moment after witnessing strong demand during the subscription period.

Baazar Style Retail IPO Timeline and Key Details

The IPO saw significant investor interest, with the total subscription reaching 40.66 times. The retail category was subscribed 9.12 times, while qualified institutional bidders (QIBs) showed a massive 81.83 times subscription. The non-institutional investors (NII) category was booked 59.43 times, and the employees’ portion saw a 35.36 times subscription.

Baazar Style Retail Shares: Grey Market Premium (GMP) and Listing Price Expectations

According to market observers, the grey market premium (GMP) for Baazar Style Retail shares is ₹64 per share as of today. This GMP suggests that the shares are expected to list at a price of around ₹453 per share, which represents a premium of over 16% to the issue price of ₹389.

Strong Subscription Despite High Valuation Concerns

Despite the higher valuation, analysts are optimistic about Baazar Style Retail’s stock market debut. The IPO was well-received due to strong market sentiment and solid subscription figures. Prashanth Tapse, Sr. VP Research at Mehta Equities Ltd., believes the stock could see a listing gain of around 10-15% in a best-case scenario. However, he advised investors to consider booking profits early, given the high valuation and potential challenges in the fashion retail industry.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., echoed similar sentiments. She noted that while the company’s growth trajectory and strong financial performance are promising, the high valuation might dampen investor enthusiasm. Nyati recommends a cautious approach, balancing the company’s growth potential with the valuation risks.

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Baazar Style Retail IPO Details and Company Background

Baazar Style Retail raised ₹834.68 crore through the IPO. This included a fresh issue of 38.04 lakh shares worth ₹148.00 crore and an offer for sale (OFS) of 1.77 crore shares aggregating to ₹686.68 crore. The price band for the IPO was set between ₹370 and ₹389 per share.

Baazar Style Retail is a growing value retailer with a strong presence in regional markets. The company has shown impressive growth, and its focus on improving profit margins has gained attention. However, analysts caution that regional preferences and fashion trends may present challenges as the company expands.