Baazar Style Retail Limited IPO

Baazar Style Retail Limited’s IPO Opens on August 30: Key Details and Insights

Baazar Style Retail Limited is set to launch its initial public offering (IPO) on Friday, August 30, 2024. The IPO will offer investors a chance to buy shares in the retail company with the subscription window closing on Tuesday, September 3, 2024.

Key Dates and Timeline

• IPO Open Date: Friday, August 30, 2024
• IPO Close Date: Tuesday, September 3, 2024
• Basis of Allotment: Wednesday, September 4, 2024
• Initiation of Refunds: Thursday, September 5, 2024
• Credit of Shares to Demat: Thursday, September 5, 2024
• Listing Date: Friday, September 6, 2024
• Cut-off Time for UPI Mandate Confirmation: Not specified

Price Band and Issue Details

• Price Band: ₹370 to ₹389 per equity share
• Face Value: ₹5 per equity share
• Minimum Bid: 38 equity shares and in multiples thereof
• Employee Discount: ₹35 per equity share for eligible employees

The IPO includes a fresh issue of equity shares worth up to ₹148 crore and an offer for sale (OFS) of up to 1,76,52,320 equity shares by promoter group and investor selling shareholders. The proceeds from the fresh issue will be used to prepay or repay a portion of outstanding borrowings and for general corporate purposes.

Recent Developments

Earlier this month, Baazar Style Retail Limited raised ₹37 crore through a private placement of 9,56,072 equity shares to Volrado Ventures Partners Fund II at an issue price of ₹387 per share. As a result, the fresh issue amount has been reduced accordingly.

Lead Managers and Registrar

• Book Running Lead Managers: Axis Capital Limited, Intensive Fiscal Services Private Limited, JM Financial Limited
• Registrar to the Offer: Link Intime India Private Limited

The shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Advantages and Disadvantages

Advantages:

1. Price Band: The price band of ₹370 to ₹389 provides a range that can attract various investors with different budget preferences.
2. Employee Discount: Offering a discount to eligible employees may boost internal morale and participation in the IPO.
3. Use of Proceeds: The allocation of funds for debt repayment and general corporate purposes can improve the company’s financial health and operational flexibility.
4. Experienced Lead Managers: The involvement of reputable book running lead managers adds credibility and indicates strong support for the IPO.

Disadvantages:

1. Reduced Fresh Issue Amount: The fresh issue amount has been reduced due to the recent private placement, which might impact the company’s ability to raise additional funds as initially planned.
2. Offer for Sale Component: The OFS means that the company will not receive any proceeds from the sale of these shares, which could limit the direct impact of the IPO on the company’s growth plans.
3. Pricing Uncertainty: The final issue price within the given band might fluctuate based on market conditions, affecting investor sentiment.
4. Limited Information on Future Plans: There is limited information provided on specific future growth plans or strategies, which could be a concern for potential investors.

Conclusion

The IPO of Baazar Style Retail Limited offers investors an opportunity to participate in the company’s public listing with a reasonable price band and a discount for employees. While the fresh issue of equity shares aims to strengthen the company’s financial position and support its corporate objectives, the reduced issue size due to prior private placement and the OFS component may influence the overall attractiveness of the IPO. Investors should consider these factors and the company’s use of proceeds before making investment decisions.

FAQs

1. What is the price band for Baazar Style Retail Limited’s IPO?
   The price band for the IPO is set between ₹370 and ₹389 per equity share.
2. When does the IPO open and close?
   The IPO opens on Friday, August 30, 2024, and closes on Tuesday, September 3, 2024.
3. How many equity shares can investors bid for?
   Investors can bid for a minimum of 38 equity shares and in multiples of 38 shares thereafter.
4. What will the proceeds from the fresh issue be used for?
   The proceeds from the fresh issue will be used to prepay or repay outstanding borrowings and for general corporate purposes.
5. Who are the book running lead managers for the IPO?
   Axis Capital Limited, Intensive Fiscal Services Private Limited, and JM Financial Limited are the book running lead managers.

Baazar Style Retail Limited IPO

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