Baazar Style Retail Limited is coming up with an IPO worth INR 834.68 crores, consisting of a fresh issue of 0.38 crore shares worth INR 148 crores and an offer to sell 1.77 crore shares worth INR 686.68 crores. The company aims to prepay or repay outstanding borrowings and allocate funds for general corporate purposes.
Baazar Style Retail IPO – Important Dates
| Baazar Style Retail Limited IPO Date | August 30, 2024 to September 3, 2024 |
| Baazar Style Retail Limited IPO Listing Date | September 6, 2024 |
| Baazar Style Retail Limited IPO Price | INR 370-389 per share |
| Baazar Style Retail Limited IPO Lot Size | 38 Shares |
| Baazar Style Retail Limited IPO Total Issue Size | INR 834.68 crores |
| Baazar Style Retail Limited IPO Basis of Allotment | September 4, 2024 |
| Baazar Style Retail Limited IPO Initiation of Refunds | September 5, 2024 |
| Baazar Style Retail Limited IPO Credit of Shares to Demat | September 5, 2024 |
| Baazar Style Retail Limited IPO Issue Type | Book Built Issue IPO |
| Baazar Style Retail Limited IPO Listing At | BSE, NSE |
Baazar Style Retail Limited IPO – Company Profile
Bazaar Style Retail, a leading value fashion retailer, operates 162 stores across 146 cities, holding significant market shares in West Bengal and Odisha, and boasts the most crucial retail footprint in Eastern India.
Strategically located stores and a cluster-based expansion model enable Bazaar Style Retail to manage supply chains efficiently, enhance brand visibility, and attract high footfall, leading to the highest EBITDA margin among listed value retailers in FY 2024.
With a modern shopping environment and efficient logistics, the company ensures quality products at affordable prices. Air-conditioned stores, appealing layouts, and trained staff enhance the customer experience across its 9,046-square-foot average store size.
Baazar Style Retail Ltd IPO Fundamental Analysis
Baazar Style Retail Limited’s financial analysis reveals a mixed performance. Revenue has consistently grown, supported by rising equity and liabilities. Profitability, EPS, and RoNW have improved, but liquidity challenges persist with a higher debt-equity ratio.
- Revenue Trend: The revenue increased from ₹5,511.18 million in March 2022 to ₹7,879.03 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 9,728.82 million.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹80.07 million in March 2022 to ₹219.42 million by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹1.31 in March 2022 to ₹3.14 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 5.67% to 10.32%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover Ratio, which might suggest stronger sales or efficient inventory management.
Baazar Style Retail IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 5,511.18 | 7,879.03 | 9,728.82 |
| Equity (₹ in Million) | 1,437.74 | 1,935.85 | 2,151.26 |
| Expenses (₹ in Million) | 5,711.88 | 7,889.82 | 9,536.07 |
| Profit and Loss After Tax (₹ in Million) | (80.07) | 51.02 | 219.42 |
| RoNW (%) | (5.67) | 2.67 | 10.32 |
| NAV per Equity Share (₹) | 21.21 | 27.35 | 30.43 |
| Diluted EPS only (₹) | (1.31) | 0.76 | 3.14 |
| Total Assets (in millions) | 7,541.96 | 8,671.09 | 11,659.66 |
| Total Liabilities (in millions) | 6,104.22 | 6,735.24 | 9,508.40 |
| Debt Equity Ratio | 0.55 | 0.57 | 0.76 |
| Current Ratio (in time) | 1.09 | 1.18 | 1.05 |
| Inventory turnover ratio (in times) | 1.56 | 1.79 | 1.73 |
Baazar Style Retail Limited IPO Peer Comparison
Baazar Style Retail Limited outperforms competitors with solid earnings per share and returns on net worth. V-Mart Retail Limited shows negative profitability, while V2 Retail Limited has moderate earnings and return on net worth.
| Company | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Baazar Style Retail Limited | 5 | – | 3.14 | 3.14 | 10.32 | 30.43 |
| V-Mart Retail Limited | 10 | NA | (48.93) | (48.93) | (12.98) | NA |
| V2 Retail Limited | 10 | 138.88 | 8.04 | 8.04 | 10.12 | 79.42 |
Baazar Style Retail Ltd IPO Objective
The main objective of Baazar Style Retail Limited is to prepay or repay a portion of its outstanding borrowings.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by their company: The company intends to utilize INR 113.77 crores from the Net Proceeds to prepay or repay exceptional borrowings, including loans from Axis Bank, considering various factors like interest rates, penalties, and lender consents.
- General corporate purposes: The company plans to use the net proceeds for general corporate purposes, including meeting working capital needs, managing business processes, funding growth opportunities, capital expenditure, marketing, and other business expenses.
Baazar Style Retail IPO Risks And Challenges
Baazar Style Retail Limited’s risk includes concentration in Eastern India, heavy reliance on apparel, and challenges with private label brands. Success depends on managing regional competition, anticipating customer preferences, and maintaining effective branding and inventory practices.
- With most of its revenue generated from stores in Eastern India, Bazaar Style Retail faces heightened risks from competition, economic shifts, and regional challenges due to its concentrated presence in core markets.
- With a significant reliance on the apparel category for revenue, the company’s success hinges on accurately predicting customer preferences and effectively managing inventory to prevent unsold stock while staying competitive in a rapidly changing market.
- The company’s private label brands significantly contribute to revenue but face risks related to customer preference, resource strain, and market perception. Effective branding and marketing are crucial to maintaining and enhancing brand visibility.
Baazar Style Retail Ltd IPO – Industry & Market Potential
The Indian apparel market, valued at ₹54,76,275 million in FY 2023, is projected to grow at an 18.2% CAGR, reaching ₹1,06,82,500 million by FY 2027, driven by brand consciousness, purchasing power, and urbanization.
India’s footwear retail market, valued at ₹7,61,110 million in FY 2023, is projected to grow to ₹14,81,200 million by FY 2027, driven by increased brand adoption, rising disposable income, urbanization, and growth in sports and athleisure segments.
India’s costume jewelry market, valued at ₹2,79,000 million in FY 2023, is expected to reach ₹3,34,600 million in 2024. Despite a brief pandemic-related decline, it’s projected to grow at a CAGR of 14% to ₹4,96,000 million by FY 2027.
Baazar Style Retail Limited IPO – Type of Offer
Baazar Style Retail Limited plans a fresh issue of shares, seeking INR 148 crores to fund prepay or repay outstanding borrowings and allocate funds for general corporate purposes. Additionally, the company proposes an offer for sale, intending to sell 1.77 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 148 crores. The company intends to utilize the proceeds from the fresh issue to prepay or repay outstanding borrowings and allocate funds for general corporate purposes.
- Offer for sale: Baazar Style Retail Limited is offering to sell 1.77 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Sabita Agarwal | 942,000 |
Baazar Style Retail IPO Offer Size
The offer size of Baazar Style Retail Limited is INR 834.68 crores, consisting of a fresh issue of 0.38 crore shares worth INR 148 crores and an offer to sell 1.77 crore shares worth INR 686.68 crores. The company seeks funds to prepay or repay outstanding borrowings and allocate funds for general corporate purposes.
Baazar Style Retail Limited IPO Allotment Structure
Baazar Style Retail Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for Baazar Style Retail IPO?
To apply for the Baazar Style Retail Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Baazar Style Retail Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Baazar Style Retail Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Baazar Style Retail IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Baazar Style Retail Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Baazar Style Retail Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Baazar Style Retail Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Baazar Style Retail Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Baazar Style Retail Ltd IPO Offer Registrar
The registrar for the Baazar Style Retail Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
LINK INTIME INDIA PRIVATE LIMITED
C- 101, 1st Floor, 247 Park, L.B.S Marg,
Vikhroli (West), Mumbai – 400083,
Maharashtra, India
Telephone: +91 810 811 4949,
Email: [email protected]
Website: www.linkintime.co.in
Baazar Style Retail IPO – FAQs
1. What is the allotment date of the Baazar Style Retail IPO?
The allotment date of the Baazar Style Retail Limited IPO is September 4, 2024.
2. What is the price band of the Baazar Style Retail IPO?
The price band of the issue is INR 370-389 per share.
3. What is the size of the Baazar Style Retail IPO?
The offer size of Baazar Style Retail Limited is INR 834.68 crores, consisting of a fresh issue of 0.38 crore shares worth INR 148 crores and an offer to sell 1.77 crore shares worth INR 686.68 crores. The company seeks funds to prepay or repay outstanding borrowings and allocate funds for general corporate purposes.
4. What is the listing date of the Baazar Style Retail IPO?
The listing date of Baazar Style Retail Limited’s IPO is September 6, 2024.
