Rakesh Jhunjhunwala-backed Baazar Style Retail Kickstarts prep for D-Street debut by Q2 FY24

West Bengal-based value retail chain Baazar Style Retail Ltd, which houses brands Style Baazar and Express Baazar and is backed by late veteran investor Rakesh Jhunjhunwala, has initiated preliminary discussions with investment banks to launch an initial public offer in the second quarter of FY24, multiple industry sources with knowledge of the matter told Moneycontrol.

“Pitches were held recently for the IPO mandate of Bazaar Style Retail Ltd and 3 investment banks should be shortlisted within a month or so. No final call has been taken as yet on the quantum of the IPO, but as of now the firm is looking to raise upwards of Rs 700 crores,” said one of the persons cited above.

A second person told Moneycontrol that the IPO was likely to be a combination of primary and secondary issues of shares and the plan was to facilitate partial exits for some of the investors and also mop up proceeds for growth capital and inorganic activity.

Other than Rakesh Jhunjhunwala, other investors in the firm include the Intensive Group led by DK Surana, Kewal Kiran Clothing, Rajnish Gupta, family offices and other individuals.

Additionally, according to a third person, the filing of IPO papers with Sebi was likely to be done by December or January and a launch was targeted in July-August 2023.

All three persons above spoke to Moneycontrol on the condition of anonymity.

When contacted, Utpal Sheth, CEO, of Rare Enterprises ( founded by Rakesh Jhunjhunwala ) declined to comment.

In response to a detailed email query from Moneycontrol, Baazar Style Retail Ltd confirmed its IPO plans and the timeline for the launch.

Also Read: Rakesh Jhunjhunwala: The king is dead, long live the king

THE BAAZAR STYLE RETAIL STRATEGY

“We are targeting to put up 175 stores by 2023 and 250 stores by 2025 and we think that growth will come from 12 states in East and Central India. Although our larger vision is to become one of the country’s largest value retailers, we want to first establish ourselves in this part of the country. We are following a cluster-based approach in which we go deep in almost all the districts of the states so we can have a better economy of scale and brand visibility,” said Mr. Shreyans Surana, CMD, Baazar Style Retail Ltd via email.

Surana added that the chain had first opened for business with an outlet at Berhampore in the heart of Murshidabad in West Bengal in September 2013 and had grown from a turnover of Rs 9 crores to a turnover of Rs 850 crores “in just 9 years.”

The retail chain which provides apparel solutions for families ( mens wear, womens wear and kids wear) along with household items , home essentials, and décor, targets consumers in Tier II, III, and IV towns who seek fast fashion at affordable prices. It operates stores under the brand name ‘Style Baazar’ with an average size of 9,000 square feet and is present in the value segment in East India with over 120 outlets across 7 states including West Bengal, Bihar, Jharkhand, Assam, Tripura, Odisha, and Andhra Pradesh.

THE LEGACY OF RJ

In the last year, several firms backed by Rakesh Jhunjhunwala have either got listed on the domestic bourses or have initiated steps for an IPO. Star Health Insurance and Metro Brands made their market debuts in December. Concord Biotech filed its IPO papers recently and IKS Health is slated to file documents this month.

The 62-year-old investor, who was known as the Big Bull and Warren Buffett of India for his investment acumen and stock picks, passed away on August 14, 2022 due to a cardiac arrest.

Read More: 'He had a tremendous appetite for risk, but was equally aware of the role of luck in our lives': Friend remembers Rakesh Jhunjhunwala