Baazar Style Retail Limited, known for its trendy and affordable clothing under the banner of Style Baazar and Express Baazar, has launched its IPO to raise ₹834.67 crores. The issue comprises 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 price band for the IPO is set between ₹370 and ₹389 per equity share. Investors can subscribe to the IPO from August 30, 2024, to September 03, 2024, with shares expected to list on the BSE and NSE on September 06, 2024.

Subscription and Allotment Details:

Retail investors must invest in a minimum of 38 shares, amounting to ₹14,782, while High-Net-Worth Individuals (HNIs) need to invest in at least 14 lots (532 shares), equating to ₹206,948. The IPO is being managed by JM Financial Limited, Intensive Fiscal Services Private Limited, and Axis Capital Limited, with Link Intime India Private Limited acting as the registrar.

The IPO allotment is expected to be finalized on September 05, 2024. Investors can check their allotment status on the registrar’s website by selecting "Baazar Style Retail Limited IPO" from the dropdown list and entering their application number, PAN, or DP Client ID.

Financial Performance:

Baazar Style Retail Limited has demonstrated a robust financial performance over recent years. Revenue increased from ₹5,611.39 Million in FY22 to ₹9,828.26 Million in FY24. Similarly, EBITDA rose from ₹683.52 Million in FY22 to ₹1,421.64 Million in FY24. The company also transitioned from a loss of ₹-80.07 Million in FY22 to a profit of ₹219.42 Million in FY24.

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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, and the post-issue P/E ratio is 132.31x, compared to the industry P/E ratio of 138.88x. The company’s ROCE for FY24 is 18.39% and ROE for FY24 is 10.74%, indicating that while the IPO is fully priced, the financial growth of the company supports its valuation.

Grey Market Premium (GMP):

The Grey Market Premium (GMP) for Baazar Style Retail Limited IPO is expected to be in the range of ₹90 to ₹100, suggesting potential listing gains of 20% - 25%. However, investors should note that GMP is based on unregulated trading and may not reflect the actual market price upon listing.

Investment Consideration:

Considering Baazar Style Retail Limited’s strong financial performance and growth potential, this IPO presents a viable opportunity for risky investors seeking listing gains or long-term investment. Nevertheless, due to the fully priced nature of the IPO, cautious evaluation is recommended before making any investment decisions.

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