Baazar Style Retail IPO Day 1 : Here are 10 key risks from the RHP you should know before investing

Baazar Style Retail IPO: The initial Public offering of the Baazar Style Retail Limited opened on 30 August 2024. The issue will be available for subscription till 3 September'2024 .Here are 10 key risks from the Red Herring Prospectus (RHP) you should know before investing

10 Key Risks from the RHP

1. Geographical Concentration of Business: Baazar Style Retail Limited stores are concentrated in the eastern parts of India and any adverse developments affecting its operations in this state could have an adverse impact on its revenue and results of operations

2. Products Concentration: Baazar Style Retail Limited business is concentrated on sale of our apparel and merchandise products and subject to the unpredictability of changing customer preferences.

3. If any new private labels, including under Baazar Style Retail Limited existing products verticals, that it launched is not as successful as it anticipates, its business, results of operations and financial condition may be adversely affected

4 . The fashion and retail industry are highly competitive. If Baazar Style Retail Limited does not respond to competition effectively, its cash flows, financial condition and results of operation may be adversely affected

5. The use of “Style Baazar” or similar trade names or images by third parties may result in loss of business to such third parties, and any potential negative publicity relating to such third parties may adversely affect Bazaar Style Retail reputation, the goodwill of its brand and business prospects.

Next five key risks

6. The growth of its business depends on its ability to identify, obtain and retain quality retail spaces and our ability to effectively implement and manage its retail network.

7. Bazaar Style Retail follow a cluster-based expansion model which leads to a concentration of its business in a relatively small area

8. Bazaar Style Retail relies on a wide range of third party suppliers for sourcing its products with whom it does not have definitive or exclusive agreements. Failure to successfully leverage its Supplier relationships and network or to identify new suppliers and any loss arising from failure to supply or delay in supply by by Suppliers or from any defective products supplied by its Suppliers could adversely affect its business, financial condition, cash flows and results of operation.

9. Baazar Style Retail Limited operations are exposed to the risk of fire accidents which could result in significant financial loss, property damage, interruption of its business operations and potential personal injury or loss of life

10. Some of Baazar Style Retail Limited products are subject to seasonal customer demand.

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