Baazar Style Retail Set to Launch IPO on August 30

Baazar Style Retail Limited, a fashion retailer with a strong presence in eastern India, is set to launch its Initial Public Offering (IPO). This IPO will allow the company to raise fresh capital and provide an exit opportunity for existing shareholders through an offer for sale. The IPO is structured as a book-built issue, with the price bands yet to be announced. The company’s shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) after the closure of the subscription period.

IPO Details and Timeline

The Baazar Style Retail IPO is scheduled to open on August 30, 2024, and close on September 3, 2024. The issue comprises a fresh issue of Rs. 148 crore and an offer for sale of 1.77 crore shares. The allotment of shares is expected to be finalized on September 4, 2024, with the tentative listing date set for September 6, 2024. The IPO will be listed on BSE and NSE, with Axis Capital Limited, Intensive Fiscal Services Private Limited, and JM Financial Limited acting as the lead managers. Link Intime India Private Ltd is the registrar for the issue.

The IPO has a specific reservation structure, where not more than 50% of the net offer is reserved for Qualified Institutional Buyers (QIBs), not less than 35% for retail investors, and not less than 15% for Non-Institutional Investors (NIIs).

Company Background

Incorporated in June 2013, Baazar Style Retail Limited operates primarily in West Bengal, Odisha, and other eastern Indian states. The company focuses on offering affordable fashion apparel and general merchandise across a family-oriented shopping environment. As of March 31, 2024, Baazar Style Retail operates stores averaging 9,046 square feet, providing a comprehensive shopping experience to its customers.

The company aims to cater to the fashion needs of men, women, boys, girls, and infants, while also offering a range of non-apparel and home furnishing products. Their operations extend to Odisha, Bihar, Assam, Jharkhand, Andhra Pradesh, Uttar Pradesh, Tripura, and Chhattisgarh, positioning them as a significant player in the regional retail market.

Objectives of the IPO

The net proceeds from the Baazar Style Retail IPO will be utilized to prepay or repay a portion of the company’s outstanding borrowings, thereby reducing its debt burden, and for general corporate purposes to support the company’s future growth and expansion plans.

Conclusion

The Baazar Style Retail IPO represents an important step for the company as it seeks to expand its footprint in the retail sector. The funds raised through this IPO will allow the company to strengthen its balance sheet and pursue further growth opportunities. Investors looking to participate in the IPO should keep an eye on the upcoming announcement of the price bands and consider the company’s potential long-term growth prospects.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.