Baazar Style IPO - Investment Rationale, Issue Details, Strategies, Financials, Risks And More: DRChoksey

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Deven Choksey Research Report.Baazar Style Retail Ltd. will launch its initial public offering tomorrow for subscription and closes on Sep. 03. A top value fashion retailer in Eastern India, has set a price band in the range of Rs 370–389 per share. .The Rs 834.7 crore Ipo comprises 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. .Object of the offerRepayment of borrowingsGeneral corporate purposes.Outlook and valuation Baazar Style is a leading value fashion retailer in Eastern India, the company reported a revenue of Rs 9,729 million in FY24, reflecting a robust 32.86% CAGR from FY22 to FY24, with an improving trend in return on equity and return on capital employed at 11% and 18% respectively in FY24. The company’s cluster-based expansion model has proven effective by rapidly adding new stores near existing ones to boost operational efficiency and market presence. A significant focus on expanding private label offerings has driven growth, with a remarkable 64.57% CAGR in this segment. The increase in the repeat purchase rate to 71.94% in FY24 versus 68.5% in FY22, an average transaction value of Rs 1,039 in FY24 versus Rs 1026 in FY22, and rising sales per square foot to Rs 7,758 in FY24 versus Rs 6,190 in FY22, showcases a growing customer base and a strong customer loyalty. Additionally, investments in supply chain optimization and operational improvements has given the company a competitive edge. By maintaining its focus on the value retail segment and expanding its online presence, Baazar Style Retail is well-positioned to capture a larger share of the growing Indian retail market. Compared to its peers, Baazar Style is growing at a faster pace, moreover, it is trading at a discount at FY24 adjusted PE of 132 times, versus 139 times for V2 Retail. Considering these factors we assign a “Subscribe” rating to the IPO..Click on the attachment to read the full IPO report:.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Baazar Style IPO - Investment Rationale, Issue Details, Strategies, Financials, Risks And More: DRChoksey

The Rs 834.7 crore IPO opens tomorrow for subscription and the company has set a price band in the range of Rs 370–389 per share.

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Baazar Style IPO - Investment Rationale, Issue Details, Strategies, Financials, Risks And More: DRChoksey

The Rs 834.7 crore IPO opens tomorrow for subscription and the company has set a price band in the range of Rs 370–389 per share.

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