Rekha Jhunjhunwala-backed Bazaar Style retail IPO opens today

Rekha Jhunjhunwala-backed Rekha-backed Bazaar Style Retail's IPO opened for subscription today, August 30.

The price band for the shares is set at Rs 370-389 per share, with investors able to bid for a minimum of 38 shares in one lot and multiples thereof.

The IPO will remain open until September 3, with the total issue size pegged at Rs 835 crore.

This includes a fresh issue of Rs 148 crore and an offer-for-sale (OFS) of up to 1.76 crore shares by existing shareholders, including Rekha Jhunjhunwala and other prominent stakeholders.

What does Bazaar Style do?

Bazaar Style Retail is a value fashion retailer operating primarily in West Bengal and Odisha, with a presence in other states like Assam, Bihar, and Jharkhand.

The company focuses on providing affordable, stylish merchandise for families. As of March 31, 2024, it operated 162 stores across nine states, averaging 9,046 square feet per store.

For the financial year ending March 2024, Bazaar Style Retail reported a net profit of Rs 21.94 crore on revenue of Rs 982.83 crore.

The company's growth strategy has been centered around expanding its footprint in tier 3 and tier 4 cities, leveraging a cluster-based expansion model.

Repaying outstanding borrowings

The proceeds from the fresh issue will primarily be used to repay certain outstanding borrowings, with the remainder allocated for general corporate purposes.

Ahead of the IPO, the company conducted a pre-IPO placement, raising Rs 37 crore, which led to a reduction in the size of the fresh issue.

Additionally, Bazaar Style Retail raised Rs 250.1 crore through the allocation of shares to anchor investors at Rs 389 per share.

Key anchor investors included Ashoka India Equity Investment Trust, Volrado Venture Partners, and HSBC Global, among others.

The issue's book-running lead managers are Axis Capital, Intensive Fiscal Services Private Limited, and JM Financial Limited. Link Intime India Private Ltd is the issue's registrar.