Patel Retail IPO: Business overview, financial performance, key risks and more— 10 key things to know from RHP

Mint

4 days ago

Patel Retail IPO: The initial public offering (IPO) of Patel Retail is set to open for subscription on Tuesday, August 19, and will remain so Thursday, August 21.
The mainboard IPO combines a fresh issue of 85,18,000 shares and an offer for sale (OFS) of 10,02,000 shares. Thus, the total offer size is 95,20,000 shares with a face value of ₹ 10 each.
Patel Retail IPO price band is set at ₹ 237 to ₹ 255 per share.
The company intends to raise ₹ 217.21 crore from the fresh issue of shares, which it will use for the repayment or prepayment of certain borrowings, funding of working capital requirements, and general corporate purposes.
Fedex Securities Private Limited is the book-running lead manager, while Bigshare Services Private Limited is the registrar for the Patel Retail IPO.
The company is expected to finalise the share allotment on Friday, August 22, and its shares will list on the BSE and the NSE on Tuesday, August 26.
Dhanji Raghavji Patel is offloading 7,68,000 shares, and Bechar Raghavji Patel is selling 2,34,000 shares, having a face value of ₹ 10 each of the company in the OFS.
According to the Red Herring Prospectus (RHP) of the IPO, the company has four promoters- Dhanji Raghavji Patel, Bechar Raghavji Patel, Hiren Bechar Patel, and Rahul Dhanji Patel.
Dhanji Raghavji Patel holds 1,62,86,528 shares, Bechar Raghavji Patel holds 46,72,000 shares, Hiren Bechar Patel holds 6,40,000 shares and Rahul Dhanji Patel holds 6,40,000 shares of the company, constituting 65.45 per cent, 18.78 per cent, 2.57 per cent and 2.57 per cent, respectively, of the pre-offer issued, subscribed and paid-up equity share capital of the company.
The company has six directors, comprising two executive directors, one non-executive director and three independent directors.
Dhanji Raghavji Patel is the chairman and managing director of the company, while Bechar Raghavji Patel is the whole-time director.
As per the RHP, the company operates retail supermarket chains in tier-III cities and nearby suburban areas.
Incorporated in FY08, the company opened its first store under the brand 'Patel's R Mart' at Ambernath, Maharashtra. As of May 31, 2025, it operates and manages 43 stores, with a retail business area of approximately 1,78,946 sq ft.
For the financial year 2022-23 (FY23), the company's revenue from operations stood at ₹ 1,018.55 crore, which declined to ₹ 814.19 crore in FY24. The company's revenue stood at ₹ 820.7 crore in FY25.
Profit after tax (PAT), however, has grown steadily over the last three financial years. In FY23, the company earned a profit of ₹ 16.38 crore, which rose to ₹ 22.53 crore in FY24 and ₹ 25.28 crore in FY25.
As per the RHP, PRPL Garments Private Limited and Patel Maritime (India) Private Limited are the two group companies of Patel Retail.
Avenue Supermarts (D-Mart), Vishal Mega Mart, Big Bazaar, Reliance Retail and unorganised retailers such as local departmental stores and kirana shops are Patel Retail's competitors.
India's healthy growth outlook is expected to augur well for domestic retail players. Amid expectations of lower inflation this year and increased consumption due to income tax relief announced in Budget 2025, the Indian retail market is expected to clock healthy growth.
"The Indian retail market is expected to witness sustained growth, with its size projected to rise to $1,300 billion in 2025 and further to $2,000 billion by 2033, translating into a CAGR of 5.27 per cent between calendar years 2024-33. Within this, the organised retail segment is anticipated to expand at a CAGR of 4.13 per cent, growing from $186 billion in 2024 to $267 billion in 2033," said the company.
The company's retail stores are concentrated in Maharashtra, particularly in the Thane and Raigad districts. Any adverse developments affecting operations in this region could negatively impact the company's retail business, financial condition, and cash flows.
"Our debt-to-equity ratio for FY25, FY24 and FY23 was 1.34, 1.97 and 2.54, respectively. Any further increase in borrowings may have a material adverse effect on our business. Further, if we do not generate a sufficient amount of cash flow from operations, our liquidity and ability to service our indebtedness could be adversely affected," said the company.
Read all IPO-related news here
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.