Baazar Style Retail Limited has emerged as a notable player in the fashion industry, offering trendy and affordable clothing. The company's exclusive brand, Style Baazar, combined with the convenience of Express Baazar's "Quick Shop. One Stop." philosophy, has positioned it as a preferred destination for fashion enthusiasts.

IPO Overview

The Baazar Style Retail Limited IPO is a book-built issue amounting to ₹834.67 Crores. The IPO comprises:

Fresh Issue: 3.80 Lakh shares worth ₹148.00 Crores

Offer for Sale: 17.65 Lakh shares totaling ₹686.67 Crores

Subscription Details:

Subscription Period: August 30, 2024, to September 03, 2024

Listing: Shares will be listed on BSE and NSE

Tentative Listing Date: September 06, 2024

Share Price Band:

Price Band: ₹370 to ₹389 per equity share

Minimum Lot Size: 38 shares

Retail Investment Minimum: ₹14,782

HNIs Minimum Investment: 14 lots (532 shares), amounting to ₹206,948

Lead Managers and Registrar:

Book-Running Lead Managers: JM Financial Limited, Intensive Fiscal Services Private Limited, Axis Capital Limited

Registrar: Link Intime India Private Limited

Allotment Status

The IPO allotment will be available on the registrar’s website once the allotment date is finalized. Investors can check their allotment status by:

Navigating to the IPO allotment status page.

Selecting Baazar Style Retail Limited IPO from the dropdown list.

Entering the application number, PAN, or DP Client ID.

Submitting the details to check the allotment status.

Objectives of the IPO

Baazar Style will not receive any proceeds from the Offer for Sale. The proceeds of the Offer for Sale will be received by the selling shareholders and will not form part of the net proceeds. Each selling shareholder will be entitled to their respective portion of the proceeds after deducting their proportion of the offer expenses and relevant taxes.

Financial Performance and Valuation

Baazar Style Retail Limited has demonstrated notable financial performance:

Revenue: Increased from ₹5,611.39 Million in FY22 to ₹7,943.89 Million in FY23, with a current revenue of ₹9,828.26 Million in FY24.

EBITDA: Rose from ₹683.52 Million in FY22 to ₹1,014.84 Million in FY23, currently at ₹1,421.64 Million in FY24.

PAT: Improved from a loss of ₹80.07 Million in FY22 to a profit of ₹51.02 Million in FY23, and currently stands at ₹219.42 Million in FY24.

For the IPO, shares are offered at a pre-issue EPS of ₹3.14 and a post-issue EPS of ₹2.94. The pre-issue P/E ratio is 123.88x, while the post-issue P/E ratio is 132.31x compared to the industry P/E ratio of 138.88x. The company's Return on Capital Employed (ROCE) for FY24 is 18.39%, and Return on Equity (ROE) is 10.74%. These metrics suggest that the IPO is fully priced.

Investment Recommendation

Considering the company's financial performance and the valuation of the IPO, the Grey Market Premium (GMP) indicates potential listing gains of 20% - 25%. Given these factors, the IPO is recommended for risk-tolerant investors who are looking for short-term listing gains or long-term investment opportunities.

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