Rekha Jhunjhunwala-backed Baazar Style Retail shares list flat; surge 11% post IPO debut

Shares of Rekha Jhunjhunwala-backed Baazar Style Retail made a flat debut on the stock exchanges on Friday, missing Street estimates amid weakness in the broader market.  The share price of Baazar Style Retail listed flat at ₹389 at par with its initial public offering (IPO) price on the BSE and NSE.

Post listing, Baazar Style Retail staged a strong comeback and gained as much as 10.8% to ₹431.15 on the NSE, while it touched a high of ₹430.95 on the BSE. The stock hit a low of ₹378.40 on the NSE, while it slipped to ₹378.15 levels on the BSE.

At the time of reporting, Baazar Style Retail were trading at ₹429.35, with a market capitalisation of ₹3,200 crore, with nearly 181 lakh shares changing hands over the counter on the NSE.

The debut of Baazar Style Retail was lower than market expectations as the stock was commanding a grey market premium (GMP) of ₹33 in the unlisted market, indicating listing to be around ₹422 per share, up 8.5%. The GMP of the company dropped from a peak of ₹141 on August 28.

The ₹834.68-crore IPO of Baazar Style Retail was booked 40.63 times, which opened for subscription between August 30 and September 3. The issue, offered at a price band of ₹370-389 per share and lot size of 38 shares and thereafter, received bids of 61 crore shares worth ₹23,757.54 crore against the offered 1.5 crore equity shares.

As per the exchange data, the quota reserved for non-institutional investors and retail participants were subscribed 59.41 times and 9.07 times, respectively. The portion set aside for qualified institutional buyer was booked 81.83 times. The employee quota also saw robust demand and was subscribed 35.07 times.

Incorporated in 2013, Baazar Style Retail is a value fashion retailer offering quality and affordable products under the apparels and general merchandise segments, through a chain of ‘value retail’ stores. The Kolkata-based retailer offers bifurcated under the apparels and general merchandise verticals under the brand name ‘Style Bazaar’.

Style Baazar had market share of 3.03% and 2.22%, respectively in the organised value retail market in the states of West Bengal and Odisha, respectively as per The Technopak Report. Within the apparels vertical, it offers garments for men, women, boys, girls and infants, whereas its general merchandise offerings include both non-apparels and home furnishing products.

Baazar Style Retail's consolidated revenue from operations stood at ₹972.88 crore in fiscal 2024 and Profit after tax stood at ₹21.94 crore in fiscal 2024. As of March 31, 2024, its stores had an average size of 9,046 square feet with trained staff to enhance customer experience.

Axis Capital Limited, Intensive Fiscal Services Private Limited, and JM Financial Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer.

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