Baazar Style Retail IPO Subscription Details on Day 2

2 Sep 2024 , 01:18 PM

The initial public offering (IPO) for Baazar Style Retail Ltd, a value fashion retailer, opened for subscription on Friday. The IPO is priced between ₹370 and ₹389 per share.

At the time of writing on September 02, 2024, at 12:05 pm on the second day of bidding, the IPO had received a total of 2.25% overall subscription. Non-institutional investors subscribed to 4.33 times their allotted portion, while retail individual investors (RIIs) subscribed to 2.19 times. The ₹835 Crore IPO is open from August 30 and will close on September 3.

The IPO includes a fresh issue of equity shares worth ₹148 Crore and an offer for sale (OFS) of up to 1.76 Crore shares, valued at ₹687 Crore at the upper end of the price band. The total issue size will be ₹835 Crore if priced at the upper band of ₹389 per share.

Under the OFS, stakes will be divested by entities including Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, and Intensive Finance Pvt Ltd. Proceeds from the fresh issue will be used to repay debt (₹146 Crore) and for general corporate purposes.

Earlier this month, the company raised ₹37 Crore from Volrado Ventures Partners Fund II in a pre-IPO placement, reducing the fresh issue size.

Baazar Style Retail is a leading player in the value retail market, particularly in West Bengal and Odisha, with a significant presence in Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh.

Investors can bid for a minimum of 38 shares in one lot, with additional shares in multiples of 38. The company’s consolidated revenue from operations was ₹972.88 Crore in FY24, with a profit after tax of ₹21.94 Crore.

Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers for the issue.