Baazar Style Retail IPO subscribed 40.63 times on last day of bidding

The initial public offer of Rekha Jhunjhunwala-backed value fashion retailer Baazar Style Retail garnered 40.63 times subscription on the closing day of bidding on Tuesday.

The Rs 835-crore initial share sale received bids for 61,07,33,758 shares against 1,50,30,116 shares on offer, according to data available with the NSE.

The portion meant for Qualified Institutional Buyers (QIBs) received 81.83 times subscription while the category for non-institutional investors got subscribed 59.41 times. The quota for Retail Individual Investors (RIIs) garnered 9.07 times subscription.

Baazar Style Retail Ltd on Thursday said it has collected Rs 250 crore from anchor investors.

The price band for the offer is Rs 370-389 per share.

The IPO is a combination of a fresh issue of equity shares worth Rs 148 crore and an offer for sale (OFS) of up to 1.76 crore shares valued at Rs 687 crore (at the upper end of the price band) by promoter group entities and other selling shareholders.

Proceeds from the fresh issue, to the extent of Rs 146 crore will be used for payment of debt and the remaining funds will be used for general corporate purposes.

Earlier this month, the Kolkata-based company raised Rs 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.

Axis Capital, Intensive Fiscal Services and JM Financial are the book-running lead managers to the issue.