Rekha Jhunjhunwala-backed Baazar Style Retail files RHP; IPO to open on August 30

The Kolkata-based value fashion retailer will launch its anchor book for the IPO on August 29

Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail (Style Baazar) has filed its red herring prospectus with SEBI and is likely to announce its IPO price band on August 27. According to the prospectus, the initial public offering comprises a fresh issuance of equity shares worth Rs 148 crore and an offer-for-sale (OFS) of 1.7 crore equity shares by promoter group entities and other selling shareholders.

Moneycontrol was the first to report about the IPO launch this week

Under the OFS, Rekha Rakesh Jhunjhunwala will sell 27.23 lakh equity shares, Intensive Softshare Private Limited will offload 22.40 lakh shares, and Intensive Finance Private will divest 14.87 lakh shares, among others.

The Kolkata-based value fashion retailer will launch its anchor book for the IPO on August 29, 2024, with the issue opening for public subscription from August 30, 2024, to September 3, 2024. Axis Capital, Intensive Fiscal Services, and JM Financial are serving as the book-running lead managers for the issue, while Link Intime India has been appointed as the registrar.

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As stated in the RHP, since the IPO is a mix of fresh issue and OFS, the net proceeds received by the company will be utilised in prepayment or repayment of all or a portion of certain outstanding borrowings of the company and general corporate purposes.

The company reported total income of Rs 982 crore in FY24, up 23 percent year-on-year (YoY) from Rs 794 crore. Its profit also jumped over four-fold or 320 percent YoY to Rs 21 crore in FY24 from Rs 5 crore in FY23, according to its RHP. Its return on equity (RoE) also rose to 10 percent in FY24, as compared to 3 percent a year back.

Baazar Style Retail is one of the leading players in the value retail market, in West Bengal and Odisha, with a presence of 162 stores spread across over 1.47  million square feet as of March 31, 2024. The company offers quality and affordable products under the apparels and general merchandise segments, through a chain of ‘value retail’ stores. Within the apparels vertical, they offer garments for men, women, boys, girls and infants, whereas general merchandise offerings include both non-apparels and home furnishing products.

According to Technopak report, value retail in the apparel segment in India was estimated to be around Rs 3.7 lakh crore in fiscal 2024. This market is expected to reach Rs 5.3 lakh crore by fiscal 2027, growing at a CAGR of 13.9 percet from fiscal 2023-27.

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