Maharashtra-based retail supermarket chain Patel Retail has decided to open its maiden public issue for fund raising in later part of current month on August 19. The issue will close on August 21.
The IPO is a combination of fresh issue of 85.18 lakh shares (which reduced by 5 lakh shares due to pre-IPO placement) and an offer-for-sale of 10.02 lakh shares by promoters.
The IPO anchor book will be launched on August 18. The company will finalise IPO share allotment by August 22 and will list its equity shares on the bourses effective August 26.
Incorporated in FY08, Patel Retail that operates and manages 43 stores of retail supermarket chain under the brand Patel’s R Mart in the suburban area of Thane and Raigad in Maharashtra plans to utilise Rs 59 crore of the fresh issue proceeds for repaying debt.
Further, Rs 115 crore will be used for its working capital requirements, and the remainder funds for general corporate purposes.
In November 2024, it mobilised Rs 15 crore through pre-IPO round of 5 lakh shares at a price of Rs 300 per share. As the pre-IPO placement is a part of fresh issue component, the company already utilised Rs 9.2 crore for its working capital requirements, and general corporate purposes.
If the upper price band of the issue comes at Rs 300 per share, the total valuation it demands could be little more than Rs 1,000 crore, and the IPO size is likely to be Rs 285.6 crore.
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Along with retail supermarket chain, Patel Retail also exports staples, groceries, pulses, spices and pulps, selling under the Patel Fresh & Indian Chaska brands.
The company has seen some volatility on the topline front, though there has been consistency in bottomline. Profit in the fiscal 2025 grew by 12.18 percent to Rs 25.3 crore, and revenue increased by 0.8 percent to Rs 820.7 crore compared to previous year.
The merchant banker handling the Patil Retail IPO is Fedex Securities.
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