Baazar Style Retail Ltd, a value fashion retail company, that is already on the list of initial public offerings, has attracted Rs 250 crore through anchor investors. This tactic indicates the company is well-positioned in the market has impressive growth prospects and already enjoys considerable attention from prominent investors.
Funding Details and IPO
On 29 th Aug 2024, Baazar Style Retail informed that it had finalized Rs 250 crore from anchor investors one day before its IPO was opened to the masses. The company allocated 64.29 lakh equity shares to 28 funds at Rs 389 each thus taking the overall deal size to Rs 250.1 crore. Top investors that participated in raising this amount of funds include HSBC Global Investment Funds, HDFC Mutual Fund, Allianz Global Investors Fund, and Bajaj Allianz Life Insurance Company.
The IPO, which is set for August 30 and ends on Sep 3, 2024, is a mix of a fundraiser of Rs 148 crore through the issue of fresh equity, OFS up to 1.76 crore shares, priced at the upper end of the B band at Rs 687 crore. The price has also been fixed at a price band of Rs 370-389 for the portion offered through the IPO.
The majority of the amount generated from the fresh issue shall be directed towards repaying debts and for this, approximately Rs 146 crore. The rest of the money will be directed toward other uses for the company’s business and operations. It is believed that this rational distribution of the funds will improve the company’s financial situation and help in its growth.
Market Position
Baazar Style Retail Private Limited is one of the emerging companies in the value retail segment, especially in West Bengal and Odisha. The company also has a considerable market in other focus states of India such as Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh. The current consolidated revenue from operations of the selected mining and metals firms is Rs 972.88 crore and a profit after tax of Rs 21.94 crore in FY24, the Baazar Style Retail has depicted continuous growth and profitability from the initial years of its establishment.
Strategic Investment
High-profile individuals investing in the company substantiate the confidence investors place in Baazar Style Retailz’s business model as well as growth prospects. Some of the investors who are exiting through the OFS include Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, and Intensive Finance Pvt Ltd. It is also not only a good move in that it offers liquidity to current investors but also aids in the introduction of new capital for existing business endeavors.
Earlier this month, new generation men’s wear retail store, Baazar Style Retail floated Rs 37 crore from Volrado Ventures Partners Fund II through pre-IPO placement. This increased access to capital has also helped the company to further strengthen is balance sheet, which has helped itfloat the amount it needs from the fresh issue and pursue optimal capital investments.
Conclusion
The fundraising by Baazar Style Retail from anchor investors before its IPO is a major development in the corporate journey of the firm. The capability of mobilizing Rs 250 crore from eminent investors establishes enormous confidence in the business model in addition to growth potential.
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