Baazar Style Retail Share Price Highlights: Stock settles 2.5% higher after flat listing on NSE

• Current price: ₹402.8 (+3.5%)
• Open: ₹389
• Issue price: ₹389
• High: ₹431.1
• Low: ₹378.4

• Traded volume (Lakhs): 233.12
• Traded value: ₹956 crore
• Total market capitalisation: ₹3,055.5 crore

Value fashion retailer Baazar Style Retail will utilise the fresh issue proceeds to pay off debt and general corporate purposes.

• Current price: ₹426.6 (+9.6%)
• Open: ₹389
• Issue price: ₹389
• High: ₹431.1
• Low: ₹378.4

• The geographic concentration of business in eastern India exposes it to economic, demographic, political, and competition risks.
• Operates in a highly competitive industry
• The cluster-based expansion model leads to the concentration of business in small areas. 
• It depends on various suppliers to source products without any definitive or exclusive agreements.
• Business is workforce intensive and has an employee attrition rate of 36% as of FY24. 
• The company incurred a loss of ₹8 crore in the financial year 2021-22 due to a decline in revenues, product gross margins, and operational expenses.
• Has total secured outstanding borrowings of ₹153 crore as of June 30, 2024.

• Among the fastest-growing value retailers between 2017 and 2024 in revenue from operations and store count.
• Accelerated expansion as the store count rose from two stores in FY14 to 162 stores as of FY24, signifying a CAGR of 55%.
• Understanding customer preferences allows the firm to deliver 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
• Targeted marketing and promotion activities
• Track record of financial growth with EBITDA (Earnings before interest, taxes, depreciation, and amortisation) of ₹68 crore, ₹101 crore, and ₹142 crore in FY22, FY23, and FY24, respectively.

The initial public offering (IPO) fetched 40.63 times subscription during the bidding period from August 30 to September 3.

The portion meant for non-institutional investors (NIIs) received 59.41 times the subscription, while the qualified institutional buyers (QIBs) category got 81.83 times the subscription.

The part set aside for retail investors fetched 9.07 times the subscription.

Before the initial share sale, the company had raised ₹250 crore from anchor investors.

The ₹834.68 crore IPO, which had a price range of ₹370 to ₹389 per share, was a fresh issue of ₹148 crore and an offer for sale (OFS) of ₹687 crore by promoter group entities and other selling shareholders.

The money raised will be used to pay off debt and general corporate purposes.

About Baazar Style Retail

Baazar Style Retail is among the leading players in the value retail market in West Bengal and Odisha.

Further, its other core and focus markets include Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh and Chhattisgarh.