The Baazar Style Retail IPO has gained enormous interest from both retail and institutional investors. The Rekha Jhunjhuniwala backed IPO was opened for subscription on August 28, which closed on August 30 in the price band of ₹370-389 per share. The issue is of a total size of ₹834.68 crore, including equal fresh equity shares aggregating to ₹430 crore and an offer for sale (OFS) worth described here amounts up to ₹404.68 crore.
Key Points of Baazar Style Retail IPO:
These are some key factors of Baazar Style Retail IPO:-
1. Baazar Style Retail IPO Date:
- August 30, 2024 to September 3, 2024
2. Baazar Style Retail IPO Price Band:
- ₹370 – ₹389 rupee (per share).
3. Baazar Style Retail IPO Subscription:
- The Baazar Style Retail IPO was subscribed 23.03 times, indicating solid demand.
4. Baazar Style Retail IPO Lot Size:
- 38 Shares.
5. Grey Market Premium (GMP):
- The GMP suggests a potential listing gain of about 16%, reflecting market optimism.
6. Baazar Style Retail IPO Total Issue Size:
- ₹834.68 Crore
7. Baazar Style Retail IPO Fresh Issue:
- ₹148 Crore
8. Baazar Style Retail IPO Offer for Sale (OFS):
- ₹686.68 Crore
9. Baazar Style Retail IPO Listing Date:
- Expected on September 6, 2024
10. Lead Managers of Baazar Style Retail IPO:
- nAxis Capital, Intensive Fiscal Services, JM Financial.
11. Baazar Style Retail IPO Registrar:
- Link Intime India Private LTD
Baazar Style Retail IPO GMP Status
The GMP (Grey Market Premium), Baazar Style Retail’s sale merchandising IPO premium rate varies in the course of time to reflect investors sentiment, market demand etc. At present, the GMP is around ₹60, translating to a possible listing gain of 15-16% over issue price.
The premium is being consistently seen in the grey market, which generally gives an indication of how much listed shares are expected at a good listing gain of Baazar Style Retail IPO.
Company’s Subscription Tire and Market Backwash
Baazar Style Retail IPO has attained serious interest from some potential investor types in its IPO. The subscription was triggered at 23.03 times as per the current market updates.
On the other hand, the Qualified Institutional Buyers (QIB) group witnessed a subscription of 25.56 times, leveraging strong and potential interest from corporate investors. Non-institutional investors, that include corporations and HNIs, subscribed to the issue a whopping 45.33 times.
Apart from these, retail individual investors (RII) were also enthusiastic and applied for 12.47 times the number of shares they reserved.
The Baazar Style Retail IPO chart indicates that Veeva is a market darling no matter what “bucket” you slice its subscription rates by, as these figures suggest investors remain confident in the future growth of the company across all categories.
Baazar Style Retail IPO Review & Investment Considerations
Baazar Style Retail IPO, the company’s domestic label segment—which rakes in 37.93% of its top line should likely continue growth, causing analysts to issue a “subscribe” recommendation on True Religion based upon the brand equity upside that Dr Denim would bring to the table for potential bids, combined with resale sale state examples supporting industry multiples near or slightly above premium averages (more predictive TTM price/renewals).
While still at a high P/E of 132x realized on Fiscal Year 24 earnings, the company is viewed more as a long-term growth story. Baazar Style Retail has several strategic expansions and operational efficiencies that could benefit over time.
Baazar Style Retail IPO Business Summary and Future Growth
Baazar Style Retail is a fast-growing retail chain present in tier 2 and tier 3 cities that offers affordable fashion and lifestyle products. The company (Baazar Style Retail) has generated its revenue at a faster rate over the recent years, fuelled by growth in store network and a superior consumer base.
Baazar Style Retail is well-positioned for future scaling given its diversified product range and strong presence in under-penetrated markets.
Over the recent years, COG has debunked positive financial and economical growth as it generated revenues by a compound annual rate of 12%. Its net profit margin has also improved, coming in at about 6% during the last fiscal year.
The firm will utilize the net proceeds from its IPO for expanding its retail network, repayment of debt and general corporate purposes.
Financial Performance
Baazar Style Retail was founded in 2013 and has a number of fashion retail stores across multiple states in India. Baazar Style Retail provides to the affordable fashion criteria for families, and is well established in the West Bengal & Odisha.
In March 2024, the IRCPPL has posted a revenue statistics of ₹982.83 crore and profit was at ₹21.94 crore.
Should You Invest in Baazar Style Retail IPO?
Although there are a few naysayers as well, the general consensus among analysts is to subscribe to Baazar Style Retail IPO, looking at strong market share positioning & growth potential along with an attractive valuation. Also, the retailer, Baazar Style Retail IPO is correctly positioned in the Indian retail market with its focus on affordable fashion for non-metro cities.
The backing by a known investor like Rekha Jhunjhunwala also gives confidence and trust to the prospective investors.
Also, healthy demand from institutional investors and a “good GMP” make it more attractive to buy in this Baazar Style Retail IPO.
Yet, with the lukewarm analyst sentiment and high relative valuation, even if you like Sunrun’s business, perhaps do some more digging before buying.
Overall Implications
Baazar Style Retail IPO offers an opportunity to investors looking for retail exposure as India remains least penetrated compared with other developed nations.
It may be a good idea to consider adding this penny stock to your portfolio as it has some strong fundamentals, an exceptional growth plan ahead and significant interest from the market.
That being said, investing in such a new and rapidly evolving space requires heavy hands-on use to make an informed level-headed investment.
