Baazar Style Retail Limited

About Baazar Style Retail Limited  Incorporated in 2013, Baazar Style Retail Limited is a value fashion retailer that predominantly operates in the northeastern states. The company has a market share of 3.03% and 2.22%, respectively. In terms of store count and revenue from operations, it was one of the fastest-growing value retailers between 2017 and 2024.  Under its apparel business, the company offers garments for men, women, and children. It also has a general merchandise vertical through which it offers non-apparel and home furnishing products. It targets aspiring middle-class households and has an average transaction value of ₹1,038 as of FY24, the second highest among the listed value retailers in India.  As of 31 March 2024, the company operates 162 stores in 146 cities under its brand name ‘Style Bazaar’. The company’s merchandise sales have increased consistently; as of FY24, it sold 33.69 million units.  In FY24, nearly 84% of the company’s sales came from the apparel business, while the rest was contributed by the general merchandise segment. During the same period, the company reported same-store sales growth of 9.5%. Meanwhile, sales from the private label brand represented 37.9% of the total revenue in FY24.  The company expands and operates its stores under a cluster-based model, wherein a new store is opened and operated within the same or nearby districts. This helps increase efficiencies in supply chain and inventory management processes, strengthen brand visibility in local markets, and optimize marketing expenditures.  Between FY22 and FY24, the company saw a 20% CAGR rise in its revenue from operations. According to the Technopak report, the eastern states are the fastest-growing consumer markets for value retail, with an expected market size of ₹2,208 billion and expected to grow at a CAGR of 15% by FY27, which could benefit the company.  And now, Baazar Style Retail Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹834.68 crore, comprising fresh issue, aggregating to ₹148 crore, as well as an offer for sale, aggregating to ₹686.68 crore. The money raised from the fresh issue will be utilised to repay borrowings and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Baazar Style Retail IPO:     Company Name  Baazar Style Retail Limited   Company Type  Private    Company Established On  2013   Baazar Style Retail Limited IPO Opening Date  30th August 2024    Baazar Style Retail Limited IPO Closing Date  3rd September 2024   Baazar Style Retail Limited IPO Allotment Status  4th September 2024    Credit of Shares to the Demat Account  5th September 2024   Baazar Style Retail Limited IPO Listing Date  6th September 2024    Baazar Style Retail Limited IPO Face Value  ₹ 5 per share   Baazar Style Retail Limited IPO Lot Size  38 shares    Baazar Style Retail Limited IPO Issue Size  Approx ₹ 834 crore   Baazar Style Retail Limited IPO to be Listed on  BSE, NSE    Baazar Style Retail Limited IPO Price band  ₹370 – ₹389 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 551 crore  ₹ 787 crore  ₹ 972 crore    Net Profit/Loss  ₹ -8.0 crore  ₹ 5.1 crore  ₹ 21.9 crore               Here’s a quick look at Baazar Style Retail Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   One of the fastest-growing value retailers during the period 2017 to 2024 in terms of revenue from operations and store count.  Accelerated store expansion as the store count has grown from 2 stores since its incorporation in FY14 to 162 stores as of FY24, signifying a CAGR of 55%.  Understanding customer preferences allows the company to offer a comprehensive, targeted, and affordable product mix, leading to the second-highest average transaction value among listed value retailers as of FY24.  Strong control over the supply chain with a wide network of 641 suppliers and 1,226 vendors across the country as of 31 March 2024.  Targeted marketing and promotion activities, including traditional marketing initiatives, marketing campaigns, and loyalty programs, with advertising expenses of ₹16 crore as of FY24.  Track record of financial growth with EBITDA of ₹68 crore, ₹101 crore, and ₹142 crore in FY22, FY23, and FY24, respectively.   Risks and threats   The geographic concentration of business in the eastern part of India exposes it to economic, political, demographic, and competition risks.  Operates in a highly competitive fashion and retail industry and faces competition from retail, wholesale, and e-commerce players, as well as national and local department stores along with independent retail stores.  The cluster-based expansion model leads to the concentration of business in small areas.  Relies on a wide range of suppliers to source products without any definitive or exclusive agreements.  Business is manpower intensive and has an employee attrition rate of 36% as of FY24.  Has incurred a loss of ₹8 crore in FY22 on account of degrowth in its revenues, gross margins on its products and increase in its operational expenses.  Has total secured outstanding borrowings of ₹153 crore as of 30 June 2024 and is required to comply with certain covenants based on documentation entered into with the lenders.            Baazar Style Retail Limited IPO details  | Baazar Style Retail Limited IPO date  According to the offer document filed by the company with the SEBI, the Baazar Style Retail IPO’s opening date – in other words, the Baazar Style Retail IPO launch date – will be 30th August 2024. The Baazar Style Retail IPO closing date is 3rd September 2024. After this, investors will be updated about the allotment status on 4th September 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 5th September 2024. The Baazar Style Retail IPO listing date is 6th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Baazar Style Retail Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Baazar Style Retail IPO price band has been set between ₹370 and ₹389 per share. Interested investors can choose a price within this band to apply for the IPO.  The Baazar Style Retail IPO listing price will be determined on 6th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Baazar Style Retail Limited IPO Lot size  The Baazar Style Retail IPO details have been declared. The Baazar Style Retail IPO lot size is set at 38 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Baazar Style Retail IPO issue size is approx ₹834 crore.           How to pre-apply for the Baazar Style Retail Limited IPO?  You can pre-apply for the Baazar Style Retail Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Baazar Style Retail Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Baazar Style Retail Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Baazar Style Retail Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Baazar Style Retail Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Baazar Style Retail Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Baazar Style Retail Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Baazar Style Retail Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Baazar Style Retail Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Baazar Style Retail Limited IPO  To apply for the Baazar Style Retail Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Baazar Style Retail Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Baazar Style Retail Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.