Baazar Style Retail Limited IPO Opens: Investors Can Bid Until September 3, Minimum Investment ₹14,782
The Initial Public Offering (IPO) of Baazar Style Retail Limited, owned by investor Rakesh Jhunjhunwala, has opened. Investors can place bids for this IPO until September 3. The company’s shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 6.
Baazar Style Retail aims to raise a total of ₹834.68 crore through this issue. The company’s current investors are selling shares worth ₹686.68 crore through an Offer for Sale (OFS) of 17,652,320 shares. At the same time, the company is issuing 3,804,627 new shares worth ₹148 crore.
If you are considering investing, here’s how much you can invest in this IPO.
Minimum and Maximum Investment Amounts for Baazar Style Retail Limited IPO
Baazar Style Retail Limited has set the price band for this issue at ₹370-₹389. Retail investors can place bids for a minimum of one lot, which consists of 38 shares. If you apply for one lot at the upper price band of ₹389, you will need to invest ₹14,782.
Retail investors can apply for a maximum of 13 lots, or 494 shares. For this, investors will need to invest ₹192,166 at the upper price band.
Allocation of Shares for Retail Investors
The company has allocated 50% of the issue to Qualified Institutional Buyers (QIBs). Additionally, 35% of the shares are reserved for retail investors, while the remaining 15% are reserved for Non-Institutional Investors (NIIs).
Baazar Style Retail Premium in Grey Market
Before listing, the shares of Baazar Style Retail have reached a premium of 33.42% in the grey market, which equates to ₹130 per share.
Based on this premium, the shares could list at ₹519 according to the upper price band of ₹389. However, this is only an estimate, and the actual listing price may differ from the grey market price.
Rakesh Jhunjhunwala to Sell 2.723 Million Equity Shares
Rakesh Jhunjhunwala is selling 2.723 million equity shares under the Offer for Sale (OFS). In addition to this, Intensive Softshare Private Limited will sell 2.240 million shares, and Intensive Finance Private Limited will sell 1.487 million shares.
Utilization of Funds from IPO
According to the Red Herring Prospectus (RHP), the IPO is a combination of a fresh issue and an Offer for Sale (OFS). The funds raised from the IPO will be used for prepayment or repayment of certain existing borrowings and for general corporate purposes.
What is an IPO?
An Initial Public Offering (IPO) occurs when a company offers its shares to the general public for the first time. This process allows a company to raise capital by selling shares or issuing new shares instead of taking a loan from the market. Companies typically use an IPO to fund business expansion or other corporate needs.
