Patel Retail sets price band for IPO, opens for bidding on August 19; check all details

Patel Retail, a retail supermarket chain operating under the brand Patel’s R Mart, is preparing to launch its initial public offering (IPO) with a price band set between Rs 237 and Rs 255 per share. The IPO is scheduled to open for subscription on August 19 and will close on August 21. Anchor investors can start bidding a day earlier, on August 18. The company plans to use Rs 59 crore of the proceeds to repay debt, Rs 115 crore for working capital requirements, with remaining funds allocated for general corporate purposes. The issue size at the upper band is approximately Rs 217.21 crore, including an offer for sale valued at Rs 25.56 crore from existing stakeholders.

Incorporated in FY08, Patel Retail manages 43 stores in Maharashtra's Thane and Raigad suburbs. The company is not only a retailer but also exports goods such as staples, groceries, and spices under its brands Patel Fresh and Indian Chaska. The fiscal year 2025 saw a 12.18% increase in profit to Rs 25.3 crore and a revenue rise of 0.8% to Rs 820.7 crore compared to the previous year.

For the IPO, Patel Retail has allocated 30% of the net offer for qualified institutional bidders. Non-institutional investors are set to receive 25% of the allocation, while retail investors will have access to 45%. Fedex Securities is acting as the merchant banker for the IPO, and Bigshare Services will serve as the registrar.

The Patel Retail IPO comes at a price band 15% lower than its pre-IPO round in November 2024, where shares were priced below Rs 300. This pricing strategy might be aimed at attracting more retail investors. The share allotment is expected to be finalized by August 22, with the listing on stock exchanges set for August 26.

With its strategic expansion into both retail and export markets, Patel Retail is positioning itself to leverage growth in consumer demand. The company’s decision to go public reflects its ambition to capitalize on these growth opportunities, while also strengthening its financial foundation through debt repayment and enhanced working capital. Investors are advised to consider the company's operational framework and financial performance when evaluating this investment opportunity.