Baazar Style Retail Limited IPO is scheduled to open on August 30, 2024, with a price band of ₹370-389 per share. The company is a fashion retailer with a strong presence in West Bengal and Odisha.
IPO Details
- Registrar: Link Intime India Private Ltd
- Issue Type: Main Board IPO
- Issue Size: ₹834.68 crores (Fresh Issue + Offer for Sale)
- Price Band: ₹370-389 per share
- Issue Open Date: August 30, 2024
- Issue Close Date: September 3, 2024
- Expected Listing Date: September 6, 2024
- Lead Managers: Axis Capital Ltd, Intensive Fiscal Services Private Ltd, JM Financial Ltd
Timeline
| IPO Open Date: | August 30, 2024 |
| IPO Close Date: | September 3, 2024 |
| Basis of Allotment: | September 4, 2024 |
| Refunds: | September 5, 2024 |
| Credit to Demat Account: | September 5, 2024 |
| IPO Listing Date: | September 6, 2024 |
About Company
Baazar Style Retail Limited is a leading fashion retailer in West Bengal and Odisha, India. The company operates a chain of multi-brand stores, offering a wide range of apparel, footwear, and accessories for men, women, and children.
Core Business:
- Retail: Baazar Style operates a network of retail stores, both company-owned and franchised.
- Multi-Brand Format: The stores offer a diverse range of products from various brands, catering to different customer segments.
- Fashion Focus: The company specializes in fashion apparel and accessories, including clothing, footwear, and accessories.
Market Position:
- Baazar Style has a strong presence in West Bengal and Odisha, with a significant market share in the fashion retail segment.
- The company has a loyal customer base and is known for its quality products and competitive pricing.
Future Outlook:
- Baazar Style aims to expand its geographic reach and increase its market share in the Indian fashion retail market.
- The company may explore opportunities to enter new product categories or segments.
- Strengthening its online presence and omnichannel capabilities can be key growth areas.
Here are some resources to learn more about company
- Read DRHP Here
Objective
The primary objectives of the Baazar Style Retail Limited IPO are:
- Raising Capital: The company aims to raise ₹834.68 crores through the IPO, which will be used for:
- Expansion: Funding the expansion of retail stores and strengthening the company’s geographic presence.
- Working Capital: Meeting the day-to-day operational expenses of the business.
- General Corporate Purposes: Supporting other growth initiatives and strategic investments.
- Brand Visibility: The IPO will increase the visibility of Baazar Style among investors and the general public, enhancing its brand recognition and credibility.
- Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.
By achieving these objectives, Baazar Style Retail Limited aims to strengthen its financial position, expand its business, and enhance its market presence.
POSITIVE
- Strong Regional Presence: Baazar Style has a well-established presence in West Bengal and Odisha, with a loyal customer base.
- Growth Potential: The Indian fashion retail market is growing, offering opportunities for expansion.
- Diverse Product Range: The company’s multi-brand format caters to a wide range of customer preferences.
NEGATIVE
- Regional Focus: Baazar Style’s concentration in West Bengal and Odisha limits its national reach.
- Competition: The fashion retail market is highly competitive, with both organized and unorganized players.
- Economic Downturns: Consumer spending on fashion can be affected by economic downturns.
So, How Does Baazar Style Retail Limited IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
| 2022 | ₹561.14 | ₹571.19 | ₹8.01 | ₹7,54.20 |
| 2023 | ₹794.39 | ₹788.98 | ₹5.10 | ₹8,67.11 |
| 2024 | ₹982.83 | ₹953.61 | ₹21.94 | ₹11,65.97 |
Financial Analysis:
Key Observations:
- Revenue Growth: The company has consistently increased its revenue over the past three years, indicating strong growth and market penetration.
- Profitability: Profit after tax (PAT) has also grown steadily, suggesting improved operational efficiency and cost management.
- Asset Growth: The company has invested in assets, as evidenced by the increase in total assets over the three years.
Detailed Analysis:
- Profitability:
- Gross Profit Margin: To calculate the gross profit margin, we need the cost of goods sold (COGS). Without COGS, we cannot accurately assess the company’s efficiency in converting revenue into profit.
- Operating Profit Margin: Similarly, operating expenses are required to calculate the operating profit margin, which indicates the company’s efficiency in managing its core operations.
- Efficiency:
- Inventory Turnover Ratio: This ratio measures how efficiently the company manages its inventory. A higher turnover ratio indicates better inventory management.
- Debtor Turnover Ratio: This ratio assesses the company’s efficiency in collecting receivables from customers.
- Solvency:
- Debt-to-Equity Ratio: This ratio indicates the company’s financial leverage. A lower ratio suggests a stronger financial position.
- Interest Coverage Ratio: This ratio measures the company’s ability to cover its interest expenses with its operating profit.
Baazar Style Retail Limited IPO Valuation :
| KPI | Values |
|---|---|
| ROE | 10.74% |
| ROCE | 18.39% |
| Debt/Equity | 0.76 |
| RoNW | 10.32% |
| P/BV | 12.78 |
| PAT Margin (%) | 2.23 |
Baazar Style Retail Limited IPO – SWOT Analysis
Strengths
- Strong Regional Presence: Baazar Style has a well-established presence in West Bengal and Odisha.
- Diverse Product Range: The company offers a wide range of fashion products catering to different customer segments.
- Customer Loyalty: A loyal customer base can provide a stable revenue stream.
- Omnichannel Presence: If the company has an online presence, it can leverage both physical stores and digital channels.
Weaknesses
- Regional Focus: Concentration in West Bengal and Odisha limits national reach.
- Competition: The fashion retail market is highly competitive, with both organized and unorganized players.
- Economic Downturns: Consumer spending on fashion can be affected by economic downturns.
Opportunities
- Expanding Geographical Reach: Entering new markets within India or exploring international expansion.
- Product Diversification: Adding new product categories or expanding into adjacent markets.
- Private Label Brands: Developing own brands can improve margins and differentiate the company.
- Omnichannel Expansion: Strengthening online presence and integrating it with physical stores.
Threats
- E-commerce Competition: Online retailers like Amazon and Flipkart pose a significant threat.
- Changing Consumer Preferences: Rapidly changing fashion trends and consumer preferences can impact demand.
- Supply Chain Disruptions: Global supply chain issues can affect product availability and costs.
COMPETITIVE ANALYSIS: MARKET PEERS
- Pantaloons: A leading fashion retailer with a strong presence across India.
- Lifestyle: Another major player in the Indian fashion retail market, offering a wide range of products.
- Westside: A part of the Tata Group, Westside is a popular fashion brand with a focus on premium products.
- Local and Regional Players: Numerous local and regional fashion retailers operate in different parts of India.
Baazar Style Retail Limited IPO GMP
- Grey market premium as on 03-09-2024 = Rs 60 / Share
Disclaimer:
- IPO Grey Market Premium (Baazar Style Retail Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Baazar Style Retail Limited IPO
🔴 Live Subscription Status 🔴
03/08/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 42,86,248 | 0.70 | 0.84 | 81.83 |
| Non Institutional Investors(NIIs) | 32,14,686 | 0.47 | 11.62 | 59.41 |
| Retail Individual Investors(RIIs) | 75,00,934 | 0.82 | 3.75 | 9.07 |
| Employees | 28,248 | 6.01 | 20.47 | 35.08 |
| Total | 1,50,30,116 | 0.72 | 4.64 | 40.63 |
FINAL TAKEAWAY
✅ Avoid
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