Baazar Style Retail Ltd IPO: Review, Valuation, Date & GMP

Baazar Style Retail IPO-Complete Overview

Rekha Jhunjhunwala-backed Baazar Style Retail IPO a Mainboard IPO is a book-built issue of Rs.834.68 crore (21,456,947 Shares) by Baazar Style Retail Ltd. The company was founded in June 2013 and is a fashion store based in West Bengal and Odisha. The company sells clothing for boys, girls, ladies, and infants in addition to general things including home furnishings and non-apparel items.

The company is an affordable clothing brand with a market share of 3.03% and 2.22% in the West Bengal and Odisha respectively. In comparison to the Listed Value Retailers, the company has the biggest retail footprint in Eastern India for FY 2024. The company had sales of Rs.7758/sqft for the FY 2024.

The company strives to offer every Indian stylish stuff at a reasonable price, concentrates on creating a family-friendly shopping experience, and offers high-quality products. The stores had an average floor area of 9,046 square feet as of March 31, 2024, and were manned by qualified staff members to improve the shopping experience.

Assam, Jharkhand, Tripura, Uttar Pradesh, Andhra Pradesh, Odisha, and Bihar are the States where the company is active.

By March 31, 2024, the company was operating 162 outlets and had grown to include 9 states. 13 employees made up the company's internal marketing staff as of March 31, 2024.

This new IPO is to be launched on 30 August 2024, and its ‘initial public offering’ will end on 03 September 2024.

Baazar Style Retail IPO Overview

The Rs.834.68 crore Baazar Style Retail Ltd. IPO comprises a combination of a fresh Issue of 0.38 crore Shares amounting to Rs.148 crore and an Offer for Sale (OFS) of 1.77 crore Shares amounting to Rs.686.68 crore out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO date is from August 30 to September 03, 2024. The IPO listing is on Friday, September 06, 2024, and it will be held on the BSE and NSE. Baazar Style Retail IPO price band is between Rs.370 to Rs.389 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

Below is the synopsis of the company's financial data (Restated Consolidated) for the financial year that concluded on 31 March 2024.

• The total assets of the company are Rs.1,165.97 crore.

• The company’s total revenue is over Rs.982.83 crore.

• The company’s PAT is Rs.21.94 crore.

• The net worth of the company is Rs.212.56 crore.

• The company's EBITDA is Rs.142.14 crore.

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in Million)

 

Product-wise Revenue Bifurcation of Sales For The Last Fiscal (Consolidated)

(Values in Million)

 

Market Share Bifurcation For The Last Three Fiscals

(Values In %)

 

State-wise Bifurcation of Revenue From Operations For The Last Fiscal (Consolidated)

(Values In Million)

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfil its following goals:

• Repayment of all or a portion of some outstanding loans that the company has taken out.

• General corporate purposes.

Peers of Baazar Style Retail  Ltd.

 

Evaluation

The Baazar Style Retail IPO price is between Rs.370 to Rs.389 for each Share.

Evaluation of P/E Ratio

Considering the FY 2024, with an EPS of Rs.3.14 from the last year, the resulting P/E ratio is 123.88x.

Considering the weighted EPS of Rs.1.61 for the last three years, the P/E ratio is 241.61x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 138.88x.

Note: The industry P/E Ratio is computed based on the closing market price of the Share as of 22 August 2024.

IPO's Strengths

• One of the value retailers in eastern India that is expanding the fastest, with a market share in the organized value retail industry of 3.03% in West Bengal and 2.22% in Odisha.

• A cluster-based strategy that accelerates store expansion.

• A keen awareness of consumer preferences to provide private label brands and a wide range of products at competitive prices that will win over new customers.

• A strong emphasis on company procedures and automation has led to high operational efficiency and a lean cost structure.

• Aimed marketing and promotion activities have increased brand visibility and gained customer loyalty.

• Expert promoters and an effective leadership team with a track record of success, supported by investors.

• A strong track record of financial growth.

 

IPO’s Weaknesses 

• Since the majority of its stores are located in eastern India, any unfavourable events might affect its business and earnings.

• The company's primary focus is selling clothing and merchandise, and the volatility of shifting consumer tastes affects this operation.

• Its operations, financial situation, and business could suffer if it introduces any new private labels that are not as successful as it expects, even within its current product verticals.

• The retail and fashion industries are very competitive. The financial situation, operating results, and cash flows could all suffer if it is unable to effectively counter the competition.

• The company concentrates its business in a relatively narrow area as a result of using a cluster-based expansion approach.

• Demand from customers varies seasonally for several of its products.

 

Baazar Style Retail IPO GMP Today

Its IPO GMP today is Rs.131 as of 26 August 2024. With a price band of Rs.389, the Baazar Style Retail IPO's listing price (estimated) is Rs.520.

Baazar Style Retail IPO Timetable (Tentative)

The IPO open date is from August 30 to September 3, 2024, with IPO allotment on September 04, 2024, refund initiation on September 05, 2024, and listing on September 06, 2024.

 

Baazar Style Retail IPO Details 

The IPO with a face value of Rs.5 per Share is set to start on August 30, 2024, close on September 03, 2024, and offers a total issue size of 21,456,947 Shares between Rs.370 to Rs.389 per Share with a Lot size of 38 Shares and will be listed at BSE and NSE.

 

Baazar Style Retail IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (38 Shares) amounting to Rs.14,782, and 13 Lots (494 Shares) amounting to Rs.1,92,166 respectively, while for HNI investors, the minimum Lot is 14 (532 Shares) amounting to Rs.2,06,948.

Promoters and Management of Baazar Style Retail  Ltd. 

• Pradeep Kumar Agarwal

• Rohit Kedia

• Shreyans Surana

• Bhagwan Prasad

• Rajendra Kumar Gupta

• Sabita Agarwal

• Rajendra Kumar Gupta (HUF)

• Sri Narsingh Infrastructure Private Limited.

 

Baazar Style Retail IPO Lead Managers

• Axis Capital Limited.

• Intensive Fiscal Services Private Limited.

• Jm Financial Limited.

Dividend Policy

The company has not paid any dividends during the last three FYs.

Conclusion

The company has experienced negative cash flow in investing activities and financing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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