Baazar Style Retail
Book Building issueMainboard₹835 Cr issue
0.00%
Listing gain over issue price
Issue size
₹835 Cr
1 lot at cut-off
₹14,782
Lot size
38shares
Open
30 Aug 2024
Close
03 Sep 2024
Allotment
04 Sep 2024
Listing
06 Sep 2024
Listing performance
Issue price
₹389
Listed at
₹389
Listing-day close
₹400
Latest price
₹368.10
Close on 23 Oct 2026
Listing gain
0.00%
Return since issue
-5.37%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Aug 2024 – 03 Sep 2024
- Listing date
- 06 Sep 2024
- Face value
- ₹5 per share
- Issue price
- ₹389 per share
- Lot size
- 38 shares
- Issue type
- Book Building issue
- Total issue size
- ₹835 Cr
- Market cap at offer price
- ₹2,903 Cr
- Promoter holding
- 55.03% → 45.56% pre-issue → post-issue
- ISIN
- INE01FR01028
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- P S Srijan Tech Park, DN-52, 12th Floor, Street Number 11, DN Block, Sector V, Salt Lake, North 24 Parganas, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 64,29,372 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 38 shares per lot, in multiples, at ₹389
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 38 | ₹14,782 |
| Retail (max) | 13 | 494 | ₹1,92,166 |
| S-HNI (min) | 14 | 532 | ₹2,06,948 |
| S-HNI (max) | 67 | 2,546 | ₹9,90,394 |
| B-HNI (min) | 68 | 2,584 | ₹10,05,176 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
64,29,372
Anchor portion
₹250 Cr
at ₹389 per share
Valuation and performance
Valuation at offer price
₹389 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.10 | 2.94 |
| P/E (×) | 125.48 | 132.31 |
| Price to book (×) | 12.78 | — |
| Market cap | — | ₹2,903 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 10.32%
- ROCE
- 18.39%
- Debt / equity
- 0.76
- PAT margin
- 2.23%
- NAV per share
- ₹30.43
- Price to book
- 12.78
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Baazar Style Retail
Baazar Style Retail Limited is a value fashion retailer with a market share of 3.03% in the organized value retail market in West Bengal and 2.22% in Odisha. The company offers quality and affordable products under the apparels and general merchandise segments through a chain of 'value retail' stores. Within the apparels vertical, it offers garments for men, women, boys, girls and infants, whereas general merchandise offerings include non-apparels and home furnishing products. As of March 31, 2024, the company operated 162 stores across 86 districts in 9 states in eastern India. The company was incorporated as Dwarkadas Mohanlal Private Limited on June 3, 2013, and was renamed to Baazar Style Retail Limited on January 6, 2022. It generates revenue through retail sales of apparel and general merchandise under both branded and private label offerings.
Company Analysis
from RHPBaazar Style Retail Limited is a value fashion retailer offering apparels and general merchandise through a chain of stores concentrated in eastern India.
Baazar Style Retail Limited is a value fashion retailer with a market share of 3.03% in the organized value retail market in West Bengal and 2.22% in Odisha. The company offers quality and affordable products under the apparels and general merchandise segments through a chain of 'value retail' stores. Within the apparels vertical, it offers garments for men, women, boys, girls and infants, whereas general merchandise offerings include non-apparels and home furnishing products. As of March 31, 2024, the company operated 162 stores across 86 districts in 9 states in eastern India. The company was incorporated as Dwarkadas Mohanlal Private Limited on June 3, 2013, and was renamed to Baazar Style Retail Limited on January 6, 2022. It generates revenue through retail sales of apparel and general merchandise under both branded and private label offerings.
value retailfashion retailapparel retailgeneral merchandise retail
Objects of the Issue
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company ₹1,460.00 million p.27
- General corporate purposes [●] p.27
- Repayment or pre-payment of all or a portion of certain outstanding borrowings p.61
- General corporate purposes p.61
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company ₹1,137.71 million p.143
- General corporate purposes p.143
Issue Structure
- Total Issue
- Up to [●] equity shares of face value of ₹5 each, aggregating up to ₹[●] million
- Fresh Issue
- Up to [●] equity shares of face value of ₹5 each, aggregating up to ₹1,480.00 million
- Offer for Sale
- Up to 17,652,320 equity shares of face value of ₹5 each, aggregating up to ₹[●] million
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares
- Face Value
- ₹5 each
Business Model
The company earns revenue through retail sales of apparels and general merchandise at its physical store locations. It operates a value retail model, targeting price-sensitive customers. The company sources products from suppliers and contract manufacturers, including products under its own private label brands. Revenue is generated from point-of-sale transactions at its stores across eastern India.
Business Segments
Sale of garments for men, women, boys, girls and infants
Sale of non-apparels and home furnishing products
Sale of fashion and lifestyle apparel including smart-casuals, casual-wear, ethnic-wear and western-wear through physical retail stores
Retailing of apparel and general merchandise through e-commerce platforms, mobile applications and website via subsidiary Konnect Style Retain Private Limited
Sale of apparel products
Sale of general merchandise products
Garments for men, women, boys, girls and infants including ethnic wear and western wear, winter wear, sports wear, and accessories
Non-apparels and home furnishing products including footwear, accessories, toys, board games, bed linen, storage items, crockery, and luggage
Operates retail stores in West Bengal, Odisha, Assam, and Bihar offering apparels and general merchandise
Expanding presence in Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh
Offers garments for men, women, boys, girls and infants including shirts, t-shirts, trousers, sarees, sports and active wear, winter wear
Offers footwear, imitation jewellery, toys, bags, cosmetics, home appliances, kitchen appliances, bedding, storage products
Operates 10 proprietary private label brands including Square up, Awaya, Miss19, Miss12, Kirtle, Walsey, Miss Desi, Dozo, Corenerzy, and Home Focus
Retailing a variety of apparels and non-apparels consumer products through retail stores under brand names Express Baazar, Mega Baazar, and Style Baazar
Retailing a variety of apparels and non-apparels consumer products through online channel
Sale of garments for men, women, boys, girls and infants
Sale of footwear, imitation jewellery, toys, bags, luggage, gifts, novelties, cosmetics, skin care items, grooming products, household items, home furnishing products, kitchen utensils and crockery
Retail sales of apparel and home furnishings products through physical stores
SWOT Analysis
Strengths
- • Market leadership in eastern India value retail(p.26)
- • Growing private label contribution demonstrating brand building(p.43)
- • Significant store expansion momentum(p.46)
- • Strong revenue growth trajectory(p.29)
- • High repeat customer retention(p.49)
- • Optimized inventory turnover management enables responsive customer demand fulfillment(p.50)
- • Established in-house quality control team verifies merchandise from suppliers(p.50)
- • Centralized distribution network supports efficient store operations(p.50)
- • Diverse third-party logistics partnerships reduce dependency on single provider(p.50)
- • Implemented security measures to prevent inventory and cash losses(p.51)
- • Significant employee base of 2,616 permanent staff as of March 31, 2024(p.52)
- • Fastest growing value retailer 2017-2024 by store count and revenue(p.225)
- • Largest retail footprint in Eastern India(p.224)
- • Highest EBITDA margin among peer value retailers(p.225)
- • Strong private label brand contribution and control(p.225)
- • Second highest Average Transaction Value among value retailers(p.224)
- • Cluster-based expansion model enabling supply chain efficiency(p.225)
- • Strong cluster-based expansion model with rapid store growth(p.228)
- • Deep market penetration in Core Markets with 87.58% of revenue contribution(p.228)
- • Strong understanding of customer preferences and comprehensive product portfolio(p.228)
- • Growing private label brands with higher margins(p.231)
- • High operational efficiency with lean cost structure(p.236)
- • Experienced promoters with multi-decadal industry experience(p.239)
- • Strong financial track record with consistent revenue growth(p.240)
- • High repeat purchase rate indicating strong customer loyalty(p.238)
- • Established retail network across multiple store formats(p.316)
- • Revenue growth trajectory(p.312)
- • Profitability improvement in recent year(p.312)
- • Experienced and diversified management team(p.291)
- • Largest retail footprint in Eastern India among listed value retailers(p.371)
- • Fastest growing value retailer by store count and revenue since 2017(p.371)
- • High EBITDA margin compared to listed competitors(p.372)
- • Second highest average transaction value among listed value retailers(p.372)
- • Strong private label brand contribution(p.372)
- • Diverse product portfolio across apparel, home, and lifestyle categories(p.398)
- • Strong income diversity; revenue not dependent on single customer or supplier(p.396)
- • Significant capital investment demonstrating growth commitment(p.395)
- • Moderate debt-to-equity ratio indicating manageable leverage(p.395)
Weaknesses
- • Operational concentration in eastern India(p.42)
- • High dependence on apparels segment(p.42)
- • Cluster-based expansion creating geographic concentration risk(p.43)
- • Historical losses and low profit margins(p.30)
- • Significant supplier concentration(p.47)
- • Fire accident damages and warehouse disruptions(p.48)
- • Operational stores lacking fire safety approvals(p.48)
- • Critical dependency on single central warehouse in Hooghly district exposes operations to localized disruptions(p.50)
- • Historical fire incidents at warehouse facilities create operational vulnerability(p.50)
- • Quality control processes may fail despite internal verification team(p.50)
- • Significant reliance on third-party contract manufacturers for private label apparel with limited formal agreements(p.55)
- • Limited control over third-party contract manufacturer operations and quality(p.55)
- • High employee attrition rate of 36.61% in Fiscal 2024 indicates retention challenges(p.54)
- • 31 stores lack fire NOC certification, representing 18.73% of Fiscal 2024 sales(p.63)
- • Company incurred losses in past fiscal years; current PAT margins remain thin(p.55)
- • Subsidiary has incurred losses in Fiscal 2024(p.55)
- • Total secured borrowings of ₹1,534.76 million represent substantial financial burden(p.56)
- • Restrictive covenants in financing arrangements limit operational flexibility(p.56)
- • Company has not obtained Fire NOC for 31 stores, creating regulatory and operational risks(p.63)
- • Multiple form filing delays and penalties imposed by RoC(p.63)
- • Delays in statutory employee benefit payments across multiple categories(p.64)
- • Company has entered into related party transactions creating potential conflicts of interest(p.56)
- • Two promoter group entities (Shreyans Creation Global and RPB Creation) are among top five suppliers(p.67)
- • Recent fire at warehouse on May 20, 2024 with losses yet to be determined(p.60)
- • Subsidiary holds unsecured borrowings of ₹1.50 million repayable on demand(p.61)
- • Company has no guaranteed dividend policy and has not declared dividends in past three fiscals(p.68)
- • Contingent liabilities of ₹30.00 million could materialize and adversely affect financial condition(p.66)
- • Limited geographic presence outside East India(p.219)
- • Deteriorating cash conversion cycle(p.222)
- • High dependence on Core Markets for revenue stability(p.228)
- • Significant store closures indicating operational challenges(p.228)
- • Majority of inventory held in warehouse with potential inventory management risks(p.237)
- • Reliance on third-party logistics providers for store delivery(p.236)
- • High debt levels relative to equity(p.311)
- • Heavy lease obligations concentration(p.344)
- • Inventory dependency and potential markdown risk(p.331)
- • Significant recent fire loss impacting operations(p.308)
- • Heavy dependence on leasehold stores with renewal risk(p.373)
- • Significant inventory markdown provisions(p.358)
- • Fire incident destroying major warehouse inventory and equipment(p.364)
- • High lease liability burden relative to equity(p.359)
- • Significant contingent tax liabilities across multiple years(p.395)
- • Material warehouse fire loss in May 2024 with inventory and asset damage(p.398)
- • Material creditor concentration with single creditor representing significant portion of payables(p.413)
- • Supplier concentration risk with top five suppliers exceeding 9% of supply(p.398)
- • Substantial pending fire safety approvals across multiple store locations(p.419)
- • Significant outstanding tax proceedings and contingent liabilities(p.409)
Opportunities
- • Rapid expansion of eastern India value retail market(p.26)
- • National value retail market growth trajectory(p.26)
- • Expansion into new geographic markets and focus states(p.17)
- • Private label portfolio expansion opportunity(p.43)
- • General merchandise penetration growth(p.42)
- • E-commerce initiative through subsidiary to capture online customer base and expand omnichannel presence(p.52)
- • Significant market opportunity in lifestyle and home value retail segment valued at ₹6,592.11 billion(p.55)
- • Growing organized retail segment to transition from unorganized retail market(p.55)
- • Expansion of private label brand portfolio with 10 brands covering diverse product categories(p.55)
- • Tier-3 and tier-4 city penetration opportunity with limited organized retail presence(p.55)
- • East India value retail market growing at 15.9% CAGR through FY 2027(p.209)
- • Potential for 800-1000 stores per player in North and East India by FY 2027(p.210)
- • Organized value retail penetration in apparel rising from 45% to 48% through FY 2027(p.184)
- • Branded apparel market growing faster than overall market at 23.2% CAGR(p.184)
- • Value fashion market growing at 13.9% CAGR through FY 2027(p.205)
- • Expansion into non-apparel categories including home and accessories(p.220)
- • Significant untapped market in Eastern and North-Eastern India(p.228)
- • Expansion opportunity in Focus Markets with high growth potential(p.240)
- • Opportunity to add 800-1000 stores across Northern and Eastern India(p.240)
- • Growing private label revenue with economies of scale(p.240)
- • Omni-channel expansion through e-commerce platforms(p.241)
- • Cross-promotional schemes and Average Transaction Value growth(p.240)
- • Expansion of online retail channel(p.316)
- • Planned store expansion and capital investment(p.335)
- • Value retail sector growth positioning(p.316)
- • Expansion in untapped tier II and III cities(p.373)
- • Growing aspiring middle class consumer segment(p.371)
- • Increased penetration of general merchandise and non-apparel categories(p.392)
- • Strong same-store sales growth momentum(p.391)
- • Retail sector expansion with seasonal demand cycles across product categories(p.397)
- • Pricing strategy flexibility to maintain volumes amid inflation(p.396)
Threats
- • Intense competitive pressure from established and new entrants(p.44)
- • Growth of online retail competition(p.45)
- • Seasonal demand volatility and inventory risk(p.48)
- • Unpredictable shifts in customer fashion preferences(p.42)
- • Supplier supply chain disruption risks(p.47)
- • Intellectual property infringement risks by competitors(p.44)
- • Retail space availability constraints(p.45)
- • Transportation disruptions from strikes, labor issues, weather, and accidents could delay or lose product deliveries(p.50)
- • Underestimation of customer demand may force outsourcing to non-existing suppliers at unfavorable terms(p.50)
- • Third-party logistics provider disruptions could significantly impact distribution operations(p.51)
- • Freight and forwarding costs increased 46.8% from Fiscal 2022 to Fiscal 2024, pressuring margins(p.51)
- • Insurance recovery for transit losses may be inadequate relative to product value(p.51)
- • Retail industry vulnerable to shoplifting, employee theft, and fraud(p.51)
- • E-commerce platform development faces scalability challenges and high operational costs(p.52)
- • Technology systems may become obsolete or encounter operational interruptions(p.53)
- • Increasing cyber-attacks and data security threats pose operational risk(p.53)
- • Data protection law compliance requires significant resource investment(p.53)
- • Competitive threat from unorganized retail sector with lower overhead costs and established customer loyalty(p.55)
- • Third-party contract manufacturers face operational risks including equipment breakdowns, accidents, and labor unrest(p.55)
- • Labor law violations by contract manufacturers could expose company to legal liability(p.55)
- • Unpredictable labor disputes and strikes could disrupt retail operations(p.55)
- • Related party entities (Shreyans Creation Global, Zedd Studio LLP) operate in similar fashion retail business(p.67)
- • Show-cause notice from RBI to promoter group entity regarding NBFC registration status(p.64)
- • COVID-19 pandemic disrupted business with store closures, inventory management challenges, and workforce availability issues(p.73)
- • Future pandemics could disrupt retail operations without assurance of effective management(p.73)
- • Slowdown in Indian economic growth could adversely affect retail demand(p.70)
- • Inflation could increase business costs without proportional price increases to customers(p.72)
- • High inflation rates make cost estimation and control difficult(p.72)
- • Competition Act enforcement could impact business arrangements and result in substantial penalties(p.70)
- • Changes in taxation laws and GST could negatively impact profitability(p.71)
- • Contingent tax liabilities of ₹30.00 million could materialize as actual liabilities(p.66)
- • Global financial instability and trade wars could affect Indian economy and retail sector(p.71)
- • Geopolitical risks including Russia-Ukraine war and Israel-Gaza conflict could impact global economy(p.71)
- • Credit rating downgrade could increase borrowing costs and limit capital access(p.68)
- • Insurance coverage may be inadequate for all potential losses and recovery may be delayed(p.69)
- • Insurance policy renewals may not be granted on acceptable terms or at all(p.69)
- • Increased competition from new value retail entrants and established giants(p.213)
- • Competition from low-cost producers in China, Bangladesh and Vietnam(p.212)
- • High production costs due to infrastructure gaps and complex labour laws(p.213)
- • Skill gap and labor shortage in fashion retail sector(p.213)
- • E-commerce threat driving rapid technological adoption by competitors(p.213)
- • Rising consumer demand for sustainability and eco-friendly products(p.213)
- • Intense competition in organized retail from multiple players(p.252)
- • Value retail segment faces competition from national and local players(p.252)
- • Dependence on third-party suppliers creates supply chain vulnerability(p.250)
- • Real estate lease dependency for store operations(p.255)
- • Exposure to fire accidents and property damage risks(p.255)
- • Insurance coverage may not be adequate for all operational risks(p.252)
- • Heavy reliance on lease-based store model(p.321)
- • Exposure to working capital financing dependency(p.341)
- • Interest rate and inflation pressures on financing costs(p.312)
- • Retail sector cyclicality and consumer spending sensitivity(p.314)
- • Significant inventory markdown risk from fashion/seasonal factors(p.331)
- • Intense competition in organized retail space(p.374)
- • Rising real estate costs limiting expansion(p.373)
- • Fashion trend and customer preference uncertainty(p.374)
- • Regulatory and inflation risks affecting operating costs(p.373)
- • Pending tax disputes(p.369)
- • Seasonal variations in retail demand affecting quarterly revenue comparability(p.397)
- • Interest rate risk exposure on floating-rate long-term borrowings(p.396)
- • Competitive retail environment across multiple business verticals(p.397)
- • Liquidity risk in meeting financial obligations during stressed conditions(p.396)
- • Product price sensitivity to discretionary consumer spending(p.396)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pradeep Kumar Agarwal | Promoter | 3.21% | — |
| Rohit Kedia | Promoter | 6.16% | — |
| Shreyans Surana | Promoter | 5.49% | — |
| Bhagwan Prasad | Promoter | 6.22% | — |
| Rajendra Kumar Gupta | Promoter | 0.14% | — |
| Sabita Agarwal | Promoter | 2.23% | — |
| Rajendra Kumar Gupta (HUF) | Promoter | 4.23% | — |
| Sri Narsingh Infrastructure Private Limited | Promoter | 5.87% | — |
| Pradeep Kumar Agarwal | Promoter | — | — |
| Rohit Kedia | Promoter | — | — |
| Shreyans Surana | Promoter | — | — |
| Bhagwan Prasad | Promoter | — | — |
| Bhagwan Prasad | Promoter | 6.22% | — |
| Rohit Kedia | Promoter | 6.16% | — |
| Sri Narsingh Infrastructure Private Limited | Promoter | 5.87% | — |
| Shreyans Surana | Promoter | 5.49% | — |
| Rajendra Kumar Gupta (HUF) | Promoter | 4.23% | — |
| Pradeep Kumar Agarwal | Promoter | 3.21% | — |
| Sabita Agarwal | Promoter | 2.23% | — |
| Rajendra Kumar Gupta | Promoter | 0.14% | — |
| Shakuntala Devi | Promoter | — | — |
| Avishek Prasad | Promoter | — | — |
| Pradeep Kumar Agarwal | Promoter | 3.21% | — |
| Rohit Kedia | Promoter | 6.16% | — |
| Shreyans Surana | Promoter | 5.49% | — |
| Rajendra Kumar Gupta | Promoter | — | — |
| Bhagwan Prasad | Promoter | 6.22% | — |
| Pradeep Kumar Agarwal | Promoter | 3.21% | — |
| Rohit Kedia | Promoter | 6.16% | — |
| Shreyans Surana | Promoter | 5.49% | — |
| Bhagwan Prasad | Promoter | 6.22% | — |
| Sri Narsingh Infrastructure Private Limited | Promoter | 5.87% | — |
| Rajendra Kumar Gupta (HUF) | Promoter | 4.23% | — |
| Rajendra Kumar Gupta | Promoter | 0.14% | — |
| Sabita Agarwal | Promoter | 2.23% | — |
| Pradeep Kumar Agarwal | Promoter/Chairman cum Whole-time Director | — | — |
| Shreyans Surana | Promoter/Managing Director | — | — |
| Rohit Kedia | Promoter/Whole-time Director | — | — |
| Bhagwan Prasad | Promoter/Whole-time Director | — | — |
Leadership
Pradeep Kumar Agarwal · Chairman and Whole-time Director
Rohit Kedia · Whole-time Director
Shreyans Surana · Managing Director
Bhagwan Prasad · Whole-time Director
Nitin Singhania · Chief Financial Officer
Abinash Singh · Chief Compliance Officer, Company Secretary and Head-Legal and Compliance
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Baazar Style Retail IPO FAQs
What is the lot size of Baazar Style Retail IPO?
The minimum lot size of Baazar Style Retail IPO is 38 shares. One lot costs ₹14,782 at the cut-off price.
When does Baazar Style Retail IPO open and close?
Baazar Style Retail IPO opened for subscription on 30 Aug 2024 and closed on 03 Sep 2024.
What is the listing date of Baazar Style Retail IPO?
Baazar Style Retail IPO listed on 06 Sep 2024.