Baazar Style Retail is a leading value fashion retailer with a strong presence in Eastern India, particularly in West Bengal and Odisha. The company offers a wide range of quality and affordable products through its chain of value retail stores, including apparel for all age groups and general merchandise such as non-apparel items and home furnishing products.
As of December 31, 2023, Baazar Style Retail operates 153 stores across 140 cities in nine states, making it the fastest-growing value retailer in Eastern India from 2017 to 2023, both in terms of store count and revenue from operations.
Industry Overview
The value retail sector, particularly in the apparel segment, is a major contributor to India’s retail market. The following table highlights the market size and growth projections:
| Parameter | Fiscal 2023 | Fiscal 2027 (Projected) |
|---|---|---|
| Value Retail Market Size (India) | ₹3,177.33 billion | ₹5,341.25 billion |
| Value Retail Market Size (Eastern & NE States) | ₹1,472.83 billion | ₹2,208.02 billion |
| CAGR (India) | – | 13.9% |
| CAGR (Eastern & NE States) | – | 16.6% |
Baazar Style Retail IPO Details
Baazar Style Retail is set to launch its Initial Public Offering (IPO) with the following key details:
| IPO Component | Details |
|---|---|
| Fresh Issue | Up to ₹148 crore |
| Offer for Sale | Up to 1.68 crore equity shares |
| Pre-IPO Placement | ₹37 crore raised |
| Investor Participation | Rekha Rakesh Jhunjhunwala to sell 27.23 lakh shares |
| IPO Launch Date | Expected late August or early September 2024 |
Use of Proceeds
The net proceeds from the IPO are planned to be utilized for the following purposes:
| Objective | Amount (₹ million) |
|---|---|
| Prepayment/Repayment of Outstanding Borrowings | 1,350.00 |
| General Corporate Purposes | [To be determined] |
Financial Performance
Baazar Style Retail has shown significant improvement in its financial performance, as detailed in the table below:
| Fiscal Year | Revenue from Operations (₹ crore) | Net Profit/Loss (₹ crore) |
|---|---|---|
| 2023 | 787.90 | 5.10 |
| 2022 | 551.12 | -8.091 |
Conclusion
Baazar Style Retail’s IPO offers an attractive opportunity for investors to tap into the growing value retail market in India. With a strong market presence in Eastern India and a solid growth trajectory, the company is poised for continued success in the retail sector. Investors should watch for the upcoming price band announcement to evaluate the investment potential further.
