As a leading one-stop shop in Eastern and North-Eastern India, Baazar Style has grown significantly, expanding its store count to 162 across nine states with a CAGR of 35.8% from 2017-24.
Analysts said this expansion has helped the company to capture 3% market share in West Bengal and 2.2% in Odisha within the organised value retail sector.
“Despite having a debt of Rs 1.78 crore and facing risks like intense competition, shifting consumer trends, and reliance on apparel (84% of revenue), BSRL’s growth and profitability enhancements make it a promising medium to long-term investment,” said Akriti Mehrotra, Research Analyst, Stoxbox.
Mehrotra further advised investors to hold their position considering the company’s robust financial performance and strategic growth initiatives.”The company’s focus on innovation, emphasis on customer satisfaction, cost-effective operations positions it as a potential investment option for investors with high risk capability for medium-long term investment horizon,” said Master Capital Services.The IPO of Baazar Style received a healthy response from investors with an overall subscription of nearly 41 times at close. The company proposes to use the net proceeds from the IPO for clearing borrowings and other general corporate purposes.Kolkata-based Baazar Style Retail is a value fashion retailer with the largest retail footprint in Eastern India and leadership positions in West Bengal and Odisha in the organised value retail market.
Its revenue from operations grew from Rs 551 crore in FY22 to Rs 973 crore in FY24, indicating a CAGR of 32.86% while the overall lifestyle and home value retail market has been estimated to have grown at a CAGR of 19.3% from FY22 to FY24.
The book-running lead managers of the IPO are Axis Capital, Intensive Fiscal Services and JM Financial.
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