Bazaar Style Retail Share Price : The stock of fashion retailer Bazaar Style Retail has gained some momentum after a sluggish listing. Right now this stock has strengthened by about 10 percent from the IPO price. The stock of Bazaar Style was listed on BSE today at the IPO price of Rs 389. While after some time it strengthened and reached Rs 426. However, the effect of the market sell-off has also been seen on its listing today. This IPO was subscribed more than 40 times.
Baazar Style: Investors got a strong response
The market style IPO received a strong response from investors. It was subscribed 40.6 times overall. 35 per cent of the IPO was reserved for retail investors and it was subscribed 9.07 times. 50 per cent of the IPO was reserved for qualified institutional investors (QIB) and this portion was subscribed 81.83 times. Whereas about 15 per cent of the portion was reserved for non-institutional buyers (NII) and it was subscribed 59.41 times. The portion reserved for employees received 35.08 times subscription.
Plans to target focused markets
Brokerage house Nirmal Bang says that the company has a good market share in West Bengal and Odisha due to its focus on growth in tier 3 and tier 4 cities. The company has gained strength in understanding and creating affordable products for its customers in the last few years and has increased its customer appeal.
The company plans to achieve growth from its existing core markets as well as target other focused markets. While on a P/E basis of 135 times FY24 earnings, the issue seems expensive, however, on an EV/EBITDA basis of 21.5 times FY24 earnings, it looks reasonable compared to the industry average of 28 times.
Fast-growing value retailer
Brokerage house Swastika Investmart says that Bazaar Style Retail has been the fastest growing value retailer between 2017 and 2024. It has shown improvement on the margin and growth front in both its top and bottom line. The P/E valuation of the IPO is at a high level. Although high valuation may be a hindrance, strong market demand is expected to support a positive listing. Investors may choose to prioritize listing gains, but a cautious approach is necessary due to valuation.
Investments of Rekha Jhunjhunwala
Rekha Jhunjhunwala has a 50% stake in this company. Before the IPO, she had 5,446,240 shares of the company. Out of these, she has sold 2,723,120 shares through OFS. In this way, she has received about Rs 106 crore from the stake sale in the IPO.
(Disclaimer: The views or advice on the stock are given by experts and brokerage houses. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
