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HomeIPOBaazar Style Retail's IPO: What investors need to know

Baazar Style Retail’s IPO: What investors need to know

Explore Baazar Style Retail's journey from losses to profits, detailing its IPO filing and strategic growth in India's retail market.

Baazar Style Retail, backed by the legendary investor Rekha Rakesh Jhunjhunwala, has set its sights on the public market. The company recently filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offer (IPO). Let’s dive into the details of this exciting development.

The IPO Details

The IPO will consist of a mix of fresh shares worth up to Rs 185 crore and an offer-for-sale (OFS) of up to 1.68 crore shares by the promoter group and other selling shareholders. Notably, the OFS includes shares from prominent entities like Intensive Softshare, Intensive Finance, and Chandurkar Investments, among others.

Ownership Transition

Following the demise of the Big Bull, Rakesh Jhunjhunwala, his equity shares were transmitted to Rekha Rakesh Jhunjhunwala, his nominee and wife. This transition has solidified Rekha Rakesh Jhunjhunwala’s position as a key figure in the company’s leadership.

Prominent Promoters

The company boasts a strong lineup of promoters, including Pradeep Kumar Agarwal, Rohit Kedia, and Shreyans Surana, among others. Their expertise and vision have been instrumental in Baazar Style Retail’s growth.

Utilization of Funds

The net proceeds from the fresh issue, estimated at Rs 135 crore, will be used for prepayment or repayment of outstanding borrowings and general corporate purposes. This strategic allocation of funds reflects the company’s commitment to financial prudence and growth.

Financial Performance

In the fiscal year 2023, Baazar Style Retail reported a standalone profit of Rs 5.1 crore, a significant turnaround from the net loss of Rs 8.01 crore in the previous year. The company’s revenue from operations surged by 43% to Rs 787.90 crore, driven by increased sales of apparel and non-apparel items, expansion of the retail store network, and growth in same-store sales post-Covid-19 pandemic.

Market Presence

Baazar Style Retail has established itself as a key player in the value retail market, particularly in West Bengal and Odisha. The company’s strategic focus on markets like Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh underscores its commitment to broadening its footprint across India.

Conclusion

Baazar Style Retail’s IPO marks a significant milestone in its journey towards becoming a retail powerhouse. With a strong leadership team, robust financial performance, and strategic market presence, the company is poised for continued success in the dynamic retail landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. 
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