Baazar Style Retail Limited has emerged as a leading destination for fashion enthusiasts seeking trendy and budget-friendly clothing. Their flagship brand, Style Baazar, along with the innovative Express Baazar, which follows the “Quick Shop. One Stop.” approach, has captured the fashion market's attention.

IPO Details

The Baazar Style IPO is a Book Built Issue with a total size of ₹834.67 crores. It includes a Fresh Issue of 3.80 lakh shares worth ₹148.00 crores and an Offer for Sale of 17.65 lakh shares totaling ₹686.67 crores. The subscription period runs from August 30, 2024, to September 3, 2024, with allotments expected to be finalized by September 5, 2024. The shares will list on BSE and NSE on September 6, 2024.

The share price band is set between ₹370 to ₹389 per equity share, with a minimum lot size of 38 shares. Retail investors must invest a minimum of ₹14,782, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹206,948 for 532 shares.

Key Participants

JM Financial Limited, Intensive Fiscal Services Private Limited, and Axis Capital Limited are the book-running lead managers.

Link Intime India Private Limited serves as the registrar for the issue.

Grey Market Premium (GMP)

The Grey Market Premium for the Baazar Style IPO is anticipated between ₹90 to ₹100, indicating potential gains. However, this premium is speculative and should be considered only for informational purposes as it does not reflect actual market conditions.

Subscription Status

As of 8:10 PM on September 3, 2024, the Baazar Style IPO was oversubscribed by 40.66 times on its final day of subscription. For the latest subscription status, visit the BSE website.

Allotment Status

The IPO allotment date is September 5, 2024. To check your allotment status:

Go to the IPO allotment status page.

Select Baazar Style Retail Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit to view your status.

Use of IPO Proceeds

Baazar Style will not receive proceeds from the Offer for Sale. These proceeds will be allocated to the Selling Shareholders, who will receive their share after deducting respective expenses and taxes.

Financial Performance and Valuation

Baazar Style has demonstrated impressive financial growth:

Revenue increased from ₹5,611.39 million in FY22 to ₹9,828.26 million in FY24.

EBITDA rose from ₹683.52 million in FY22 to ₹1,421.64 million in FY24.

PAT turned positive, reaching ₹219.42 million in FY24 compared to a loss in FY22.

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For this IPO, the pre-issue EPS stands at ₹3.14 with a pre-issue P/E ratio of 123.88x, and the post-issue EPS is ₹2.94 with a post-issue P/E ratio of 132.31x. These ratios are slightly below the industry average P/E ratio of 138.88x, suggesting the IPO is fairly priced.

Expert Opinion

According to Geojit Financial Services, at the upper price band of ₹389, Baazar Style's market cap-to-sales ratio stands at 3.0x (FY24), making it reasonably priced compared to peers. The company's growth strategy, including aggressive store expansions and positive industry trends, supports a “Subscribe” rating for short to medium-term investments.

Market Debut

Baazar Style Retail Limited had a flat listing at ₹389 on the National Stock Exchange, with the company raising ₹834.68 crores through a mix of fresh capital and secondary share sales.

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