Baazar Style Retail Shares Close Over 2% Higher On Debut
The Rekha Jhunjhunwala-backed company's initial public offering was subscribed 40.66 times, led by institutional investors.
Shares of Baazar Style Retail Ltd. listed on the National Stock Exchange and the BSE on Friday at par with the issue price of Rs 389 apiece. The stock closed higher on its debut.
On the BSE, it closed 2.74% higher from the opening price and the IPO price. On the NSE, the stock closed 2.56% higher.
The Rekha Jhunjhunwala-backed company's initial public offering was subscribed 40.66 times, led by institutional investors. The company was looking to mop up funds worth Rs 834.7 crore.
The IPO comprised a fresh issue of 38 lakh shares, amounting to Rs 148 crore, and an offer for sale of 1.77 crore shares, aggregating to Rs 686.7 crore.
Operating under the brand name Style Bazaar, the company is one of the leading players in the value retail market in West Bengal and Odisha. The company has market share of 3.03% and 2.22% in organised value retail markets in West Bengal and Odisha, respectively, it said in its prospectus.
Its other core and focus markets include Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh and Chhattisgarh. As of March 31, 2024, it operated 162 stores spread across over 1.47 million square feet located in 146 cities.
The company intends to use the net proceeds for prepayment or repayment of all or part of certain outstanding borrowings, and general corporate purposes.
The company started its journey in 2013 to cater to the needs of aspirational Indians in tier-2 and tier-3 cities. It has become the fastest-growing fashion retailer, both in terms of store count and operations, Managing Director Shreyans Surana said.
"We try to open stores in a state by creating a decent presence in the state," Surana said. "We try to understand the catchment and their festival requirements. Then, we plan the assortment."
The company targets people with income less than Rs 4 lakh per annum. The average transaction value of Style Baazar is Rs 1,038. The average selling price is Rs 399. The lower pyramid, from where 90% of the masses come, wants value and fashion both together, according to Surana.
