Baazar Style Retail IPO receives 72 pc subscription on Day 1 of offer

New Delhi, Aug 30 (PTI) The initial public offer of Rekha Jhunjhunwala-backed value fashion retailer Baazar Style Retail received 72 per cent subscription on the first day of bidding on Friday.

The initial share sale got bids for 1,08,18,182 shares against 1,50,30,116 shares on offer, as per NSE data.

The quota for Retail Individual Investors (RIIs) fetched 82 per cent subscription while the category for Qualified Institutional Buyers (QIBs) got subscribed 70 per cent. The portion for non-institutional investors garnered 47 per cent subscription.

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

The Rs 835-crore initial public offering (IPO) will conclude on September 3. The price band has been fixed at 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 valued at Rs 687 crore (at the upper end of the price band) by promoter group entities and other selling shareholders.

With this, the total issue size will be Rs 835 crore at the upper end of the price band of Rs 389.

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

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.