Rekha Jhunjhunwala's Next Big Bet: Is Baazar Style Retail's IPO About to Explode This Week?

Rekha Jhunjhunwala-backed Baazar Style Retail (Style Baazar) is anticipated to launch its initial public offering (IPO) this week, according to sources familiar with the matter who spoke to Moneycontrol.

In March, the value fashion retailer, based in Kolkata, submitted its draft red herring prospectus (DRHP). The proposed IPO, as outlined in the DRHP, includes a fresh issue of equity shares worth ₹185 crore, alongside an offer for sale (OFS) of up to 1.68 crore shares by entities within the promoter group and other shareholders looking to sell. Additionally, the offer features a reserved portion for eligible employees to subscribe.

As part of the OFS, Rekha Rakesh Jhunjhunwala will divest 27.23 lakh equity shares, Intensive Softshare Private Limited plans to sell 22.40 lakh shares, and Intensive Finance Private Limited will offload 14.87 lakh shares, among others.

The funds raised from the fresh issue, totaling ₹135 crore, are earmarked for debt repayment and general corporate purposes.

Earlier, on August 5, Baazar Style Retail secured ₹37 crore through a pre-IPO placement from institutional investors, including Volrado Ventures Partners Fund II. The company issued 9,56,072 shares at a price of ₹387 per share in this private placement. The DRHP has already received approval from SEBI.

Baazar Style Retail is a leading player in the value retail sector in West Bengal and Odisha, operating 153 stores across 140 cities in 9 states, covering over 1.39 million square feet as of December 31, 2023. The company reported revenue of ₹787.9 crore in FY23, with a profit after tax (PAT) of ₹5.4 crore, according to the DRHP.

The IPO is being managed by Axis Capital, Intensive Fiscal Services, and JM Financial, with Link Intime India serving as the registrar.

Incorporated in 2014, Baazar Style Retail has been the fastest-growing value retailer from 2017 to 2023, both in terms of store count and revenue from operations, achieving the highest Ebitda margin in FY23, according to a report by Technopak.

The company has successfully built its brand 'Style Bazaar' over the years by offering a diverse product range, which has led to strong customer loyalty and brand recognition.

Baazar Style Retail Private Limited (BSRL) is an Indian retail chain that offers a wide range of clothing, accessories, and general merchandise for men, women, and children. Founded in 2013, the company is based in Kolkata, West Bengal, and operates over 165 stores across seven states in India. BSRL is recognized for providing trendy fashion at affordable prices.

In addition to apparel, BSRL's general merchandise selection includes home furnishings, utensils, crockery, cutlery, and sports goods. The company focuses on catering to lower-income groups and is regarded as a pioneer in the Indian fashion retail sector.