Baazar Style Retail shares rise 11% after listing flat at IPO price

Baazar Style raised Rs 250.1 crore from 22 anchor investors on August 29.

Shares of Baazar Style Retail gained momentum and rallied 11 percent to hit an intra-day high of 431 following a subdued stock market debut on September 6, listing at Rs 389 on the Bombay Stock Exchange, matching its issue price.

The listing has missed grey market estimates where shares were trading at a premium of about 8 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

The Rs 834.6-crore initial public offer (IPO), which was a mix of a fresh issue and an offer for sale, received robust investor interest after the issue was subscribed 40.66 times against 1.5 crore shares on offer.

After three days, Qualified institutional buyers were the biggest contributors, subscribing almost 81.83 times their allocated quota. Non-institutional investors, or high net-worth individuals followed with subscriptions amounting to 59.43 times the reserved portion. The retail investors' portion was subscribed 9.12 times, while the employees' portion saw a subscription of 35.36 times.

Incorporated in June 2013, Baazar Style Retail is a fashion retailer operating predominantly in West Bengal and Odisha. The company offers a wide range of apparel for all ages as well as general merchandise including home furnishings.

The Kolkata-headquartered company raised Rs 250.1 crore from 22 anchor investors on August 29. This fundraising is ahead of the initial public offering. Global marquee investors participated in the anchor book including HSBC Global Investment Funds, Natixis International Funds, Optimix Wholesale Global Emerging Markets Share Trust, Allianz Global Investors Fund, and Societe Generale.