Baazar Style Retail Limited IPO: Things Investors Should Know

Baazar Style IPO is a book-built issue. This upcoming IPO is offering a fresh issue worth Rs 185 crore of shares and upto 1.69 Cr of offer for sale, the face value is reported as Rs. 5 Each Share. This new IPO issue is being made through the book building process, with reservation of not less than 75% of the new offer is reserved for Qualified Institutional Investor, Upto 15% is reserved for Non-Institutional Investor and the rest upto 10% is reserved for Retail Individuals.

About the Company

Baazar Style is a value fashion retailer with leadership position in terms of scale in the states of West Bengal and Odisha respectively in organized value retail market. The company was the fastest growing value retailer between 2017 to 2023, in terms of both store count and revenue from operations, when compared to V2 Retail Limited and V-Mart Retail Limited. They have the largest retail footprint in Eastern India when compared to the Listed Value Retailers in Fiscal 2023. As on December 31, 2023, we operated 153 stores spread across over 1.39 million square feet located in 140 cities. A majority of the stores are operated under the brand name ‘Style Bazaar’. Owing to the products portfolio, the Average Transaction Value was ₹1,044.70, ₹1,063.79, ₹1,040.88, ₹1,026.17 and ₹984.34 for the nine months period ended December 31, 2023, December 31, 2022, Fiscals 2023, 2022 and 2021, respectively, with our Average Transaction Value for Fiscal 2023 being the highest when compared to that of the Listed Value Retailers in India.

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Objectives of the Public Offering

We may repay or prepay certain loans obtained from Axis Bank Limited, from the Net Proceeds. Although Axis Bank Limited is an affiliate of one of our Book Running Lead Managers, Axis Capital Limited is not an associate of our Company in terms of the SEBI Merchant Bankers Regulations. Loans and facilities sanctioned to our Company by Axis Bank Limited is a part of its normal commercial lending activity and there is no conflict of interest under the SEBI Merchant Bankers Regulations, as amended, or any other applicable SEBI rules or regulations. The Board has chosen the loans and facilities, including the ones from Axis Bank Limited, to be repaid/prepaid based on commercial considerations. However, the amount of Net Proceeds utilized towards such repayment or prepayment to Axis Bank Limited, will not be available for use in our business for any other purposes.

Financials of the Company

The Company reported net revenue of Rs 794.39 Crore, Assets worth Rs 867.11 Crore and Profit After Tax is reported 5.41 Crore for the year ended March 31, 2023. The company reported its average transaction value of Rs 1040.88 which is rose by 1.4% as compared to previous FY 2022. If we look for sales of the company for the FY 2023 it reported as Rs. 78.71 Crore which is a rose by 43% as compared to FY 2022.

Lead manager, Registrar & Promoter of public offering

The IPO is managed by Axis Capital Limited, Intensive Fiscal Services Private Limited, JM Financial Limited that is the book-running lead manager whereas Link Intime India Private Limited has been appointed as the registrar for the issue. The promoters of the company is Mr Pradeep Kumar Agarwal, Mr Rohit Kedia, Mr Shreyans Surana, Mr Bhagwan Prasad, Mr Rajendra Kumar Gupta, Mr Rajendra Kumar Gupta (Huf) And Mr Sri Narsingh Infrastructure Private Limited. The listing will be on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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