Company Overview
Baazar Style Retail Limited is a prominent player in the value fashion retail segment, holding a significant presence in the organized value retail market. The company's primary markets include West Bengal, Odisha, Assam, and Bihar, while it also targets expansion in Jharkhand, Andhra Pradesh, Uttar Pradesh, Tripura, and Chhattisgarh.
As of March 31, 2024, Baazar Style Retail operated 162 stores across 146 cities, with a retail space exceeding 1.47 million square feet. The majority of these outlets function under the brand name 'Style Bazaar.'
The company's product range is categorized into apparel and general merchandise. The apparel segment features clothing for men, women, children, and infants, while the general merchandise segment includes non-apparel products and home furnishings.
Baazar Style Retail primarily serves the aspiring middle-class demographic, including fashion-conscious youth and young families. This customer base, representing a substantial part of India's purchasing power, seeks quality and value in their shopping experience.
Purpose of the IPO
The IPO includes both a fresh issue of shares and an offer for sale. It's important to note that the company won't receive any funds from the offer for sale. The net proceeds from the fresh issue are earmarked for the following purposes:
- Repayment or prepayment of a portion of the company’s existing borrowings.
- General corporate purposes.
Promoter Shareholding
The company is promoted by Pradeep Kumar Agarwal, Rohit Kedia, Shreyans Surana, Bhagwan Prasad, Rajendra Kumar Gupta, Sabita Agarwal, Rajendra Kumar Gupta (HUF), and Sri Narsingh Infrastructure Pvt Ltd. Together, the promoters and the promoter group hold a pre-issue shareholding of 55.03% in the company.
Summary of Financial Information:
| Particulars | FY22 (Standalone) | FY23 (Standalone) | FY24 (Consolidated) |
|---|---|---|---|
| Revenue | 561.14 | 794.39 | 982.83 |
| Profit before tax (PBT) | -10.05 | 5.41 | 29.22 |
| Net Profit | -8.01 | 5.10 | 21.94 |
Comparison with Listed Peers:
| Company Name | P/E | P/B | RoE (%) | |
|---|---|---|---|---|
| Baazar Style Retail Ltd | 124 | 13 | 11 | |
| Listed Peer | V2 Retail Ltd | - | 15 | -5 |
| V-Mart Retail Ltd | - | 10 | -12 |
Key details of the IPO:
- IPO Dates: 30 Aug to 3 Sep, 2024
- Price Band: Rs. 370 to Rs. 389 per share
- Lot Size: 38 shares
- Listing Date: 6 Sep, 2024
- Total Issue size: Rs. 834.68 Crores (Fresh Issue: Rs. 148 Cr.)
- Retail Quota: 35%
- GMP: 30% ( Only For Informational Purposes )
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
