Style Baazar, a rapidly growing retail brand, has captured the attention of investors with its upcoming IPO, scheduled to open on August 30, 2024. The company, which has become a go-to destination for fashion enthusiasts seeking trendy and affordable clothing, is now venturing into the stock market with an ₹834.67 crore IPO. This includes a Fresh Issue of 3.80 lakh shares worth ₹148.00 crore and an Offer for Sale (OFS) of 17.65 lakh shares totaling ₹686.67 crore.

The subscription period for the Style Baazar IPO is set to close on September 3, 2024, with the allotment expected to be finalized by September 5, 2024. The shares are expected to be listed on the BSE and NSE on or about September 6, 2024. The IPO has generated significant buzz in the market, with investors keen to capitalize on the company's growth trajectory.

IPO Details: Share Price and Lot Size

The price band for the Style Baazar IPO has been set between ₹370 and ₹389 per equity share. Retail investors are required to invest a minimum of ₹14,782, while High-Net-Worth Individuals (HNIs) must invest in a minimum of 14 lots (532 shares), amounting to ₹206,948. This pricing and lot size are designed to make the IPO accessible to a wide range of investors, from small retail participants to larger institutional players.

Role of Lead Managers and Registrars

JM Financial Limited, Intensive Fiscal Services Private Limited, and Axis Capital Limited are the book-running lead managers for this IPO, ensuring smooth execution and efficient handling of the process. Link Intime India Private Limited has been appointed as the registrar for the issue, responsible for managing the allotment and ensuring that all investor-related queries are addressed promptly.

Grey Market Premium (GMP) Insights

As of now, the Grey Market Premium (GMP) for the Baazar Style Retail Limited IPO is expected to be in the range of ₹90 to ₹100. While GMP provides a speculative insight into the potential listing gains, it's important to note that no actual trading occurs based on GMP. The premium largely depends on the demand and supply dynamics of the shares in the unorganized market. However, it is crucial to approach these figures with caution, as they are primarily for educational and informational purposes only.

Live Subscription Status

As of 02:17 PM on August 30, 2024, the live subscription status of the Baazar Style Retail Limited IPO indicates that it has been subscribed 0.35 times on its first day of the subscription period. This initial subscription rate reflects the growing interest among investors, with many closely monitoring the developments over the next few days.

Allotment Status and How to Check

The Baazar Style IPO allotment date is set for September 5, 2024. On this date, investors can check their allotment status through the registrar's website. The process is simple:

Navigate to the IPO allotment status page.

Select Baazar Style Retail Limited IPO from the dropdown list of IPOs.

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

Submit the details to check your allotment status.

By following these steps, investors can quickly determine their allotment status and make informed decisions about their next steps.

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Financial Performance Overview

Style Baazar has demonstrated a steady improvement in its financial performance over the past three fiscal years. The company's revenue has increased from ₹5,611.39 million in FY22 to ₹7,943.89 million in FY23, and it currently stands at ₹9,828.26 million in FY24. Similarly, the EBITDA has grown from ₹683.52 million in FY22 to ₹1,014.84 million in FY23, reaching ₹1,421.64 million in FY24. The Profit After Tax (PAT) has also shown a positive trend, increasing from ₹-80.07 million in FY22 to ₹51.02 million in FY23, and now at ₹219.42 million in FY24. These figures indicate a strong and consistent growth pattern, positioning Style Baazar as a promising player in the retail sector.

Valuation and Investment Analysis

For the Baazar Style IPO, the company is issuing shares 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 against the industry P/E ratio of 138.88x. The company's Return on Capital Employed (ROCE) for FY24 is 18.39%, and the Return on Equity (ROE) for FY24 is 10.74%. These metrics suggest that the IPO is fully priced, with little room for immediate gains unless the company's future performance exceeds market expectations.

Objectives of the IPO

It is important to note that Style Baazar will not receive any proceeds from the Offer for Sale (OFS). The proceeds from the OFS will go directly to the selling shareholders, who will receive their respective portions after deducting the offer expenses and relevant taxes. This structure allows existing shareholders to partially exit or reduce their stake while providing new investors with an opportunity to participate in the company's future growth.

Conclusion: Should You Invest?

The Grey Market Premium (GMP) suggests potential listing gains of 20% to 25%, making the IPO an attractive option for risk-tolerant investors. However, given the fully priced valuation and the current market conditions, it is recommended that only those with a high-risk appetite consider applying for the Baazar Style Retail Limited IPO. Long-term investors may also find value in the company's consistent financial growth and strong market positioning, but should carefully evaluate their investment goals before making a decision.

In summary, while Style Baazar's IPO presents an opportunity for potential gains, it also comes with inherent risks that must be carefully weighed by investors. As always, it is advisable to consult with a financial advisor to align this investment with your overall portfolio strategy.

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