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.
Here are the 10 most important things to know from the company’s Red Herring Prospectus (RHP):
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.
3) Key Dates
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.
6) Allotment structure
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 Pvt.Ltd. is the book-running lead manager, and Bigshare Services Pvt.Ltd. is the registrar of the issue.