Bazaar Style Retail Limited is a fashion retailer operating in West Bengal and Odisha. The company offers apparel for men, women, boys, girls, and infants and general merchandise such as non-apparels and home furnishing products. The IPO comprises fresh issue of equity shares worth up to Rs 148 crore and an offer for sale of 1,76,52,320 equity shares aggregating up to Rs 686.68 crore by existing shareholders.
| IPO opens | August 30, 2024 |
| IPO Closes | September 3, 2024 |
| IPO Size (Rs.) | ₹834.68 Cr |
| Breakup | Fresh issue ₹148.00 Cr + OFS ₹686.68 Cr |
| Face Value: | ₹ 5 |
| IPO Price in Rs : | ₹370 to ₹389 per share |
| Minimum Lot | 72 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~50 % |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| Lead Manager | Axis Capital , Intensive Fiscal Services , Jm Financial |
| Registrar | Link Intime |
About Baazar Style Retail:
- They are a multi-brand fashion hub, Style Baazar has over 135 stores scattered throughout 9 Indian states. Catering to men, women, and children of all ages, this fashion empire offers an extensive range of stylish apparel along with a vast collection of general merchandise.
- Company’s stores are concentrated in the eastern parts of India and it generates the majority of its sales from West Bengal, Odisha, Assam, and Bihar
- As of March 31, 2024, its stores had an average size of 9046 square feet. Its Sales Per Square Feet for the Fiscal 2024 was Rs. 7758.
- As of March 31, 2024, it operated 162 stores across more than 1.47 million square feet in 146 cities. The majority of its stores are operated under the brand name ‘Style Bazaar’.
- Promoters of the Company are Bhagwan Prasad, Rohit Kedia, Sri Narsingh Infrastructure, Shreyans Surana, Rajendra Kumar Gupta (HUF), Pradeep Kumar Agarwal, Sabita Agarwal and Rajendra Kumar Gupta.
Financials : Baazar Style Retail IPO
| Particulars / Rs. Cr | 2024(12) | 2023(12) | 2022(12) |
| Revenue from Operations | 972.88 | 787.9 | 551.12 |
| Revenue Growth (%) | 23.48 | 42.96 | – |
| EBITDA | 142.16 | 101.48 | 68.35 |
| EBITDA Margin (%) | 14.61 | 12.88 | 12.4 |
| Net Profit | 21.94 | 5.1 | -8.01 |
| Net Profit (%) as stated | 2.23 | 0.64 | -1.43 |
| Share Capital | 34.93 | 34.93 | 33.29 |
| Net Worth as stated | 212.6 | 191 | 141.2 |
| Total Borrowings | 178.23 | 115.18 | 101.57 |
| RONW (%) | 10.32 | 2.67 | -5.67 |
| NAV (₹) | 30.43 | 27.35 | 21.21 |
| ROE (%) | 10.74 | 3.02 | -6.86 |
| ROCE (%) | 18.39 | 13.77 | 6.59 |
| Post issue Share Capital | 37.31 | ||
| FV | 5.0 | ||
| IPO price | 389.0 | ||
| EPS Fy23 | 0.7 | ||
| PE Fy24 | 569.2 | ||
| EPS Fy24 | 2.9 | ||
| PE Fy24 | 132.3 | ||
| Market cap in Lacs | 2,903 | ||
| Market cap / Sales | 270.27 |
Anchor: Baazar Style Retail IPO
Baazar Style Retail Ltd. has raised Rs 250 crore from anchor investors. This includes investors like Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund IV Gamma, HSBC Global Investment Funds, Allianz Global Investors Fund, Al Mehwar Commercial Investments LLC, HDFC Mutual Fund, HSBC Mutual Fund, Bandhan Mutual Fund, and Bajaj Allianz Life Insurance Company.
Salient Points: Baazar Style Retail IPO
- A major portion of of the IPO is Offer For Sale.
- Promoters 55% stake to shrink to 46% post the IPO.
- Intensive Group, who surprisingly also happen to be merchant banker to the IPO are selling half of their 10.5% stake
- Rekha Jhunjhunwala also to halve current 7.7% holding,
- Proceeds from the fresh issue ( Rs. 148 cr ) are mainly for Rs. 146 cr debt repayment.
- The company targets aspiring middle class comprising of households.
- The company has the largest retail footprint in Eastern part of India.
- In FY2024, Same Store Sales Growth was 9.54% yoy.
- They achieved repeat customer purchases of about 72% in FY24 against 69% in FY22.
- Peers: Though company has shown V-Mart Retail and V2 Retail as their listed peers. They are trading at a P/E of NA and 104 but are much larger players.
- The company aims to enhance profit margins and boost revenue by increasing its private label contribution, which accounted for 37.93% of revenue in Fiscal 2024.
- Company to become to become net debt free after IPO.
- P/E ratio stands at 270x. With reduction in debt after IPO, PE may come to 65x on same set of numbers.
- I intend to apply in Baazar Style Retail IPO. This is more due to current market conditions. Also company has shown ability to grow its store count and revenues and has become profitable. Further reduction in debt and focus on own own private Labels can contribute to better profitability. Focus on Tier 3 & 4 cities may also help the company.
- GMP as reported on social media has been Rs. 95 (24%)
- This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.