Baazar Style Retail gains nearly 11% after making flat market debut

Baazar Style Retail shares: Ace investor Rekha Jhunjhunwala-backed Baazar Style Retail shares made a flat stock market debut on Friday, September 6. The stock opened for trading at Rs 389, unchanged from Initial Public Offering ( IPO ) price but it came under buying interest soon after as it rose as much as 10.78 per cent from IPO price to hit an intraday high of Rs 430.95. On the National Stock Exchange, Baazar Style Retail shares rose as much as 10.83 per cent to hit an intraday high of Rs 431.15.

Baazar Style Retail sold shares in price band of Rs 370-389 per share in the IPO which opened for bidding on August 30 and closed on September 3. The company raised Rs 834.68 crore from the IPO which was a combination of fresh issue of Rs 148 crore and an offer for sale worth Rs 686.68 crore.

Baazar Style Retail shares were in high demand during the IPO as the issue was subscribed 40.63 times. Large investors like banks, financial institutions and mutual funds, which fall under the category of Qualified Institutional Buyers (QIBs), participated in large numbers as the pie of shares set aside for the was booked 81.83 times. Shares set aside for non-institutional investors was subscribed 59.41 times and retail portion was subscribed 9 times.

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.

The company focuses on providing a family-oriented shopping experience, offering quality products and striving to offer every Indian stylish merchandise at an affordable price.

Before its issue opening on August 29, the Kolkata-based company successfully raised Rs 250.1 crore from 22 anchor investors, including prominent names such as Societe Generale, Natixis International Funds, Volrado Venture Partners Fund, HSBC Global Investment Funds, Allianz Global Investors Fund, HDFC Mutual Fund, Whiteoak Capital, Ashoka India Equity Investment Trust Plc, Motilal Oswal Mutual Fund, Helios Flexi Cap Fund, and Julius Baer India Equity Fund.

Baazar Style Retail shares traded 9.31 per cent higher at Rs 425.20 by 11:21 am.