Rekha Jhunjhunwala-Backed Bazaar Style Retail Raises Rs 250 Crore From Anchor Investors Ahead Of IPO

Bazaar Style Retail, a player in the retail sector and backed by the noted investor Rekha Jhunjhunwala, has successfully raised Rs 250 crore from anchor investors ahead of its initial public offering (IPO). The company made the announcement on Thursday, revealing that it had allocated 64,29,372 equity shares to anchor investors at a price of Rs 389 per share.

In a formal exchange filing, Bazaar Style Retail disclosed that its IPO Committee, in collaboration with the Book Running Lead Managers (BRLMs)-Axis Capital Limited, Intensive Fiscal Services Private Limited, and JM Financial Limited-finalized the allocation of shares to anchor investors during a meeting held on August 29, 2024. The committee confirmed the allocation of 64,29,372 equity shares at an anchor investor allocation price of Rs 389 per equity share, which includes a share premium of Rs 384 per share.

Out of the total 64,29,372 shares, a substantial portion-22,76,390 shares or 35.41% of the total allocation-was allotted to eight domestic mutual funds, which participated through 13 different schemes.

The Bazaar Style Retail IPO has been the subject of considerable interest in the financial markets, and the details of the offering further amplify this anticipation. The price band for the IPO has been set between Rs 370 and Rs 389 per equity share, each having a face value of Rs 5. Investors can subscribe to the IPO starting on Friday, August 30, with the subscription period set to close on Tuesday, September 3.

The IPO structure comprises a fresh issue of shares worth Rs 148 crore, coupled with an offer for sale by the company's existing shareholders and promoters, totalling up to 17.65 million shares.

For prospective investors, the IPO presents an interesting opportunity. The floor price of Rs 370 represents 74 times the face value of the shares, while the cap price of Rs 389 is 77.80 times the face value. The minimum lot size for investors has been set at 65 equity shares, with the option to purchase additional shares in multiples of 65.

Bazaar Style Retail has also laid out a clear allocation strategy for its public offering, designed to attract a diverse range of investors. No more than 50% of the total shares on offer will be available to qualified institutional buyers (QIBs). At least 15% of the shares are reserved for non-institutional investors (NIIs), which typically include high-net-worth individuals and entities. The remaining 35% of the shares are earmarked for retail investors.