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Mint
3 days ago
- Business
- Mint
Patel Retail IPO: 10 key things from the RHP investors should know
Patel Retail is set to open its initial public offering (IPO) on August 19, 2025, with the subscription window closing on August 21, 2025. The IPO, priced between ₹ 237 and ₹ 255 per share, seeks to raise ₹ 242.76 crore. The issue comprises a fresh issue of 0.85 crore shares worth ₹ 217.21 crore and an offer for sale (OFS) of 0.10 crore shares totaling ₹ 25.55 crore. In the OFS, Dhanji Raghavji Patel will sell 7,68,000 shares, while Bechar Raghavji Patel intends to offload 2,34,000 shares, each with a face value of ₹ 10. The IPO has been structured with a lot size of 58 shares, requiring retail investors to make a minimum investment of ₹ 13,746 for one application. 1) About the Firm: Patel Retail Limited, founded in 2008, is a supermarket chain serving tier-III cities and nearby suburbs. Its stores offer food, FMCG, general merchandise, and apparel. The first 'Patel's R Mart' opened in Ambernath, Maharashtra. As of May 31, 2025, the company ran 43 stores in Thane and Raigad districts, covering 1,78,946 sq. ft. To boost margins and brand presence, Patel Retail introduced private labels like 'Patel Fresh' (pulses, ready-to-cook), 'Indian Chaska' (spices, ghee, papad), 'Blue Nation' (men's wear), and 'Patel Essentials' (home improvement). 2) IPO Objectives: Patel Retail Limited plans to utilise the net proceeds from its IPO for three main purposes. The company intends to allocate ₹ 59 crore towards repayment or prepayment, in full or in part, of certain borrowings. Around ₹ 115 crore will be directed to fund the company's working capital requirements, supporting day-to-day operations and growth initiatives. The remaining portion of the proceeds will be used for general corporate purposes, enabling the company to strengthen its overall business operations and strategic plans. Basis of allotment: August 22, 2025 Refund initiation: August 25, 2025 Demat credit: August 25, 2025 Listing date (tentative): August 26, 2025, on BSE and NSE 4) Promoters: As per the Red Herring Prospectus (RHP) of the IPO, Patel Retail Limited has four promoters: Dhanji Raghavji Patel, Bechar Raghavji Patel, Hiren Bechar Patel, and Rahul Dhanji Patel. Among them, Dhanji Raghavji Patel holds 1,62,86,528 shares, representing 65.45 percent of the company's pre-offer issued, subscribed, and paid-up equity share capital. Bechar Raghavji Patel owns 46,72,000 shares (18.78 percent), while both Hiren Bechar Patel and Rahul Dhanji Patel hold 6,40,000 shares each, accounting for 2.57 percent each of the pre-offer equity. 5) Peers: Peers include Avenue Supermarts (D-Mart), Vishal Mega Mart, Big Bazaar, and Reliance Retail. The IPO allocation is as follows- QIBs: Not more than 30 percent NIIs: Not less than 25 percent Retail investors: Not less than 45 percent 7) Financial Performance: For the financial year 2022-23 (FY23), Patel Retail Limited reported revenue from operations of ₹ 1,018.55 crore, which declined to ₹ 814.19 crore in FY24. The company's revenue slightly improved to ₹ 820.7 crore in FY25. Profit after tax (PAT) demonstrated consistent growth over the same period. In FY23, PAT stood at ₹ 16.38 crore, increasing to ₹ 22.53 crore in FY24 and further rising to ₹ 25.28 crore in FY25, reflecting the company's steady profitability despite fluctuations in revenue. 8) Debt Concerns: Patel Retail Limited stated that its debt-to-equity ratio stood at 1.34 in FY25, down from 1.97 in FY24 and 2.54 in FY23. The company cautioned that any further rise in borrowings could materially impact its business operations. It also highlighted that insufficient cash flow from operations could adversely affect its liquidity and its ability to service existing debt, underlining the importance of maintaining a balanced capital structure while pursuing growth initiatives. 9) Retail Sector Outlook: India's retail sector is poised for strong expansion, supported by expectations of lower inflation in 2025 and higher consumer spending following income tax relief announced in Budget 2025. Domestic retail players are likely to benefit from this positive macroeconomic environment. 'The Indian retail market is projected to grow steadily, reaching $1,300 billion in 2025 and $2,000 billion by 2033, reflecting a CAGR of 5.27 percent between 2024 and 2033. Within this, the organised retail segment is expected to expand from $186 billion in 2024 to $267 billion in 2033, at a CAGR of 4.13 percent,' the company said, highlighting strong opportunities for growth in both general and organised retail segments. 10) Book-running managers: FedEx Securities is the book-running lead manager, and Bigshare Services is the registrar of the issue. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
5 days ago
- Business
- Mint
Patel Retail IPO: Business overview, financial performance, key risks and more— 10 key things to know from RHP
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.
