Baazar Style Retail mobilises Rs 250 crore via anchor book, IPO subscription to start on August 30

Baazar Style Retail IPO

Kolkata-based fashion retailer Baazar Style Retail has raised Rs 250.1 crore from 22 anchor investors on August 29. This fund raising is ahead of the initial public offering.

Global marquee investors participated in the anchor book included HSBC Global Investment Funds, Natixis International Funds, Optimix Wholesale Global Emerging Markets Share Trust, Allianz Global Investors Fund, and Societe Generale.

The company in its filing to exchanges on August 29 said it has finalised allocation of 64,29,372 equity shares to anchor investors at a price of Rs 389 per equity share.

HDFC Mutual Fund, Ashoka India Equity Investment Trust Plc, Whiteoak Capital, Volrado Venture Partners Fund, Bandhan Mutual Fund, Motilal Oswal Mutual Fund, Bajaj Allianz Life Insurance Company, SBI General Insurance Company, Helios Flexi Cap Fund, Trust Mutual Fund, Julius Baer India Equity Fund, Reliance General Insurance Company, and Verition Multi-Strategy Master Fund were other investors in the anchor book.

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"Out of the total allocation of 64,29,372 equity shares to the anchor investors, 22,76,390 equity shares were allocated to 8 domestic mutual funds through a total of 13 schemes," the company said.

Incorporated in June 2013, Baazar Style Retail that operates in West Bengal and Odisha aims to raise Rs 834.68 crore through its maiden public issue at the upper price band. The IPO is a combination of a fresh issue of Rs 148 crore, and an offer-for-sale of 1.76 crore equity shares worth Rs 686.68 crore.

The price band for the public issue, which will open for subscription on August 30, has been fixed at Rs 370-389 per share. The IPO will close on September 3.

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The value fashion retailer with a market share of 3.03 percent and 2.22 percent in the organised value retail market in West Bengal and Odisha, respectively, will utilise net fresh issue proceeds for repaying debt, and general corporate purposes. Post IPO, the debt burden of the company is likely to reduce significantly.

The company has reserved half of the IPO size for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 35 percent for retail investors. Rs 1 crore worth shares are also reserved for its employees and the company will allot these shares to employees at a discount of 35 per share.

Axis Capital, Intensive Fiscal Services, and JM Financial are the merchant bankers to the issue, while Link Intime India is acting as the registrar to the offer.