Baazar Style Retail IPO: The initial public offering (IPO) of Baazar Style Retail Limited hit the Indian primary market on 30th August 2024. The Rekha Jhunjhunwala-backed public issue will remain open for bidders until 3rd September 2024, i.e. Tuesday next week. The company has fixed a Baazar Style Retail IPO price band at ₹370 to ₹389 per equity share, and it aims to raise ₹834.68 crore from its initial offer. The public issue is a mix of fresh issue and Offer for Sale (OFS) as it seeks ₹148 crore through the issuance of fresh shares, and ₹686.68 crore has been reserved for the OFS route. After one day of bidding, Baazar Style Retail IPO subscription status reveals that the mainboard issue has been booked 72 per cent.
Meanwhile, the grey market continues to signal positive vibes regarding Baazar Style Retail IPO. According to stock market observers, Baazar Style Retail Limited shares are available at a premium of ₹127 in the grey market today. Baazar Style Retail IPO GMP (grey market premium) today is ₹127. So, after day one of bidding, the grey market signals around 33 per cent listing gain for potential allottees even when two days of the Baazar Style Retail IPO subscription are still left.
After day one of bidding, the Rekha Jhunjhunwala-backed public issue was subscribed 0.72 times, the retail portion of the book build issue was booked 0.82 times, the NII segment was filled 0.47 times, whereas the QIB portion was subscribed 0.70 times.
Giving a ''subscribe'' tag to the book build issue, Master Capital Services said, “The overall lifestyle and home value retail industry in India was estimated to be ₹6,592.11 billion accounts for approximately 54% of the total market in these categories of Lifestyle and Home. Baazar Style Retail Limited intends to take advantage of this opportunity and has already secured a share of 2.15% in the organized value retail market in Eastern India and North-Eastern India for Fiscal 2024. They further intend to expand profit margins and increase revenue contribution from its private labels while focusing on creating differentiation and achieving greater control over the product quality of private labels.”
Nirmal Bang has also assigned a ''subscribe'' tag to the book build issue, saying, “The company'scompany's revenues grew at a CAGR of 33% during FY22-24, while the overall lifestyle and home value retail market grew at CAGR of ~19.3% during the same period. While on a P/E basis of 135x FY24 earnings, the issue looks expensive, however; on an EV/EBIDTA basis of 21.5x FY24 earnings, it looks reasonable vs the industry average of 28x, and thus, we are recommending ''Subscribe'' to the issue for long-term gains.”
In addition to these, some other brokerages, such as Arihant Capital, DRChoksey, StoxBox, and Master Capital, have also assigned a ''subscribe'' tag to the Rekha Jhunjhunwala-backed Baazar Style Retail IPO.
As per the Red Herring Prospectus of Baazar Style Retail IPO, Rekha Jhunjhunwala has offered her 2,723,120 equity shares in this mainboard IPO. These offered shares aggregating to ₹1,05,92,93,680 or around ₹106 crore. According to the RHP of Baazar Style Retail IPO available on SEBI's website, Rekha Jhunjhunwala's name is on the list of Investor Selling Shareholders. She has offered her shares under the OFS route.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
