Rekha Jhunjhunwala-backed Style Baazar Retail Files RHP; IPO Set to Launch on August 30

Baazar Style Retail, supported by prominent investor Rekha Rakesh Jhunjhunwala, has officially filed its Red Herring Prospectus (RHP) with SEBI, signaling the upcoming launch of its Initial Public Offering (IPO). The company is expected to announce the IPO price band on August 27, 2024.

The IPO consists of a fresh issuance of equity shares worth ₹148 crore and an offer-for-sale (OFS) of 1.7 crore equity shares by promoter group entities and other shareholders. In the OFS, Rekha Rakesh Jhunjhunwala will offload 27.23 lakh equity shares, alongside other major stakeholders such as Intensive Softshare Private Limited and Intensive Finance Private.

The IPO’s anchor book will open on August 29, 2024, with the public issue available for subscription from August 30 to September 3, 2024. The company has appointed Axis Capital, Intensive Fiscal Services, and JM Financial as the book-running lead managers for the IPO, with Link Intime India serving as the registrar.

The funds raised from the IPO will be used for the repayment or prepayment of certain outstanding borrowings and for general corporate purposes, as outlined in the RHP.

For FY24, Baazar Style Retail reported a total income of ₹982 crore, reflecting a 23% increase from ₹794 crore in FY23. The company’s profit saw a significant rise, surging over four-fold to ₹21 crore from ₹5 crore the previous year. Additionally, its return on equity (RoE) improved to 10% in FY24, up from 3% in FY23.

Baazar Style Retail is a key player in the value retail market in West Bengal and Odisha, operating 162 stores across 1.47 million square feet as of March 31, 2024. The company offers a wide range of affordable products in the apparel and general merchandise categories, catering to diverse customer needs.

According to a Technopak report, the value retail market in India’s apparel segment was valued at approximately ₹3.7 lakh crore in FY24 and is projected to reach ₹5.3 lakh crore by FY27, growing at a CAGR of 13.9% from FY23 to FY27.

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_{^{Source: Moneycontrol}}