The initial public offering (IPO) of Baazar Style Retail has received a strong response from investors, with the issue being oversubscribed 40.63 times on the final day of bidding. The company's IPO includes a combination of fresh equity issue of Rs 148 crore and an offer of sale of up to 1.76 crore shares.
The quota reserved for retail individual investors was subscribed 9.07 times, while the allocation for qualified institutional bidders was booked 81.83 times. Non-institutional investors also showed strong demand, subscribing the issue 59.41 times.
The grey market premium (GMP) for Baazar Style Retail has declined to nearly Rs 53, representing a 14% premium in the unlisted market. This is a decrease from the first day of bidding, when the GMP was at Rs 130, indicating a 33% premium over the issue price.
Analysts have advised investors to subscribe to the IPO, citing the company's strong growth prospects and competitive advantages. Deven Choksey Research said, 'Compared to its peers, Baazar Style Ltd is growing at a faster pace, and is trading at a discount at FY24 adjusted PE of 132x.' Geojit also assigned a 'subscribe' rating, citing the company's aggressive store additions, customer retention, and positive industry growth opportunities.
Baazar Style Retail is a value fashion retailer with the largest retail footprint in Eastern India and leadership positions in West Bengal and Odisha. The company has 162 stores spread across over 1.47 million square feet in 146 cities, operated under the brand name 'Style Bazaar'. Its revenue from operations grew from Rs 551 crore in FY22 to Rs 973 crore in FY24, indicating a CAGR of 32.86%.
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