Baazar Style Retail Attracts Rs 250 Cr from Anchor Investors Pre-IPO

Value fashion retailer Baazar Style Retail Ltd announced on Thursday that it has raised Rs 250 crore from anchor investors. This announcement comes a day before its initial share-sale opens for public subscription. The company has allocated 64.29 lakh equity shares to 28 funds at Rs 389 each, totalling Rs 250.1 crore.

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The Rs 835-crore initial public offering (IPO) will be available for subscription from August 30 to September 3. The price band is set between Rs 370 and Rs 389 per share. The IPO includes a fresh issue of equity shares worth Rs 148 crore and an offer for sale (OFS) of up to 1.76 crore shares valued at Rs 687 crore at the upper price band.

Anchor Investors and Allocation

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 MF, HSBC MF, Bandhan MF, and Bajaj Allianz Life Insurance Company are among the anchor investors. This information was disclosed in a circular uploaded on the BSE website.

Earlier this month, the Kolkata-based company secured Rs 37 crore from Volrado Ventures Partners Fund II in a pre-IPO placement round. Consequently, the fresh issue size was reduced. Baazar Style Retail is a prominent player in the value retail market in West Bengal and Odisha.

Utilisation of Proceeds

Proceeds from the fresh issue will be used to pay off debt amounting to Rs 146 crore, with the remaining funds allocated for general corporate purposes. Under the OFS, Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, Intensive Finance Pvt Ltd, among others, will divest their stakes.

Investors can bid for a minimum of 38 shares in one lot, with additional shares available in multiples of 38. Baazar Style Retail's consolidated revenue from operations stood at Rs 972.88 crore in FY24, while profit after tax was Rs 21.94 crore in FY24.

Market Presence and Financial Performance

In addition to West Bengal and Odisha, Baazar Style Retail's core markets include Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh. Axis Capital, Intensive Fiscal Services, and JM Financial are the book-running lead managers for this issue.

With this IPO, Baazar Style Retail aims to strengthen its financial position and expand its market presence further. The total issue size will be Rs 835 crore at the upper end of the price band of Rs 389 per share.

Baazar Style Retail's strategic move to raise funds through anchor investors highlights its robust market strategy and growth potential. The company's focus on value retailing in key Indian states positions it well for future expansion.

The upcoming IPO is expected to attract significant interest from both institutional and retail investors due to its strong market presence and financial performance.