Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail Ltd. on Monday announced a price band of ₹370-389 for its initial pubic offering (IPO). Investors can place bids for 38 equity shares in one lot and in multiples thereof.

The issue will open for public subscription on August 30, and will remain open for bidding until September 3. The anchor bidding will start on August 29, 2024.

Baazar Style Retail is looking to raise ₹835 crore through the IPO, which includes a fresh share sale of ₹148 crore and an offer-for-sale (OFS) of 1.76 crore shares aggregating to ₹686.68 crore by the promoter group and other selling shareholders.

Under the OFS, Rekha Jhunjhunwala, Intensive Softshare Private Ltd, and Intensive Finance Private Ltd among others will divest their part stakes.

The proceeds from the fresh issue, to the extent of ₹146 crore will be utilised for payment of debt and the remaining funds will be used for general corporate purposes.

Baazar Style Retail IPO GMP

In the unlisted market, shares of the company are trading with a grey market premium (GMP) of ₹131, indicating a premium of nearly 34% to the issue price.

The grey market is an unofficial platform for trading in IPO shares till the listing.

Earlier this month, the Kolkata-headquartered company garnered ₹37 crore from Volrado Ventures Partners Fund II in a pre-IPO placement round.

Accordingly, the fresh issue size was reduced.

Bazaar Style Retail is one of the leading players in the value retail market in West Bengal and Odisha.

Additionally, its other core and focus markets include Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh and Chhattisgarh.

As of March 31, 2024, the stores averaged 9,046 square feet and were staffed by trained employees to enhance customer experience.

The company’s consolidated revenue from operations came in at ₹973 crore in the financial year 2024 and profit stood at ₹22 crore in FY24.

Axis Capital, Intensive Fiscal Services and JM Financial Limited are the book-running lead managers to the Baazar Style Retail IPO, while Link Intime India is the registrar.

The share allotment for the Baazar Style Retail IPO will likely be finalised on September 4, 2024. The equity shares will list on BSE, NSE with tentative listing date fixed as September 6, 2024.