Patel Retail is launching its initial public offering (IPO) for bidding on August 19, Tuesday. The retail chain player offered its shares in the range of Rs 237-255 per equity share.
Investors can apply for a minimum of 58 equity shares and its multiples thereafter. The issue shall conclude for bidding on Thursday, August 21.
The Rs 242.76 crore IPO of Patel Retail includes a fresh share sale of 84,67,000 equity shares worth Rs 215.91 crore and an offer-for-sale (OFS) of up to 10,02,000 equity shares worth Rs 25.55 crore by existing shareholders. The net proceeds from the issue shall be utilized towards repayment of debt, funding the working capital requirements and general corporate purposes.
Incorporated in 2008, Ambernath-based Patel Retail is a retail supermarket chain that operates primarily in tier-III cities and nearby suburban areas. The stores offer a wide range of products, including food, non-food (FMCG), general merchandise, and apparel. It opened its first store under the brand name ‘Patel’s R Mart’ and has 43 stores across Thane and Raigad districts as of May 31, 2025.
Patel Retail raised Rs 43.46 crore from 6 anchor investors as it allocated 17,04,388 equity shares at Rs 255 apiece. Its anchor book included names like Maybank Securities, Beacon Stone Capital, BNP Paribas Financial Markets ODI, Chanakya Opportunities Fund I, Saint Capital Fund and Pine Oak Global Fund.
For the financial year ended on March 31, 2025, Patel Retail reported a net profit of Rs 25.28 crore with a revenue of Rs 825.99 crore. Its net profit stood at Rs 22.53 crore with a revenue of Rs 817.71 crore for the year 2024-25. The company shall command a total market capitalization of Rs 851.71 crore.
Patel Retail has reserved 51,000 shares worth Rs 1 crore for its eligible shareholders. 50 per cent of the net issue is reserved for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) and retail investors will have 15 per cent and 35 per cent of allocation, respectively. Last heard, its grey market premium (GMP) stood at Rs 45 apiece, suggesting 18 per cent uspide.
Fedex Securities is the sole book running lead manager of Patel Retail IPO and Bigshare Services is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on August 26, Tuesday. Here’s what a host of brokerage firms are say on the IPO of Patel Retail:
Arihant Capital Markets
Rating: Neutral
Patel Retail is a diversified retail player operating across food, non-food (FMCG), general merchandise, and apparel segments, supported by technology-led inventory and assortment management. In FY25, its financials are reflecting its ability to scale profitably while maintaining operational efficiency, said Arihant Capital Markets.
“With a strong regional footprint, customised product offerings, and robust supply chain capabilities, it is well-positioned to benefit from the rising penetration of organised retail and sustained consumer demand growth in India. The issue is valued at a P/E of 25.96 times, based on FY25 annualized EPS of Rs 9.8, and an EV/Ebitda of 14.54 times,” it added with a ‘neutral’ rating.
Choice Broking
Rating: Subscribe for long-term
Patel Retail is trading at a P/E of 33.7, reflecting a valuation discount compared to peers. Its P/B ratio of 2.4 and EV/Sales ratio of 1 are similarly attractive relative to its peer group. While its debt-to-equity ratio currently exceeds that of competitors, management plans to deploy IPO proceeds toward deleveraging, which should reduce leverage in the near future, said Choice Broking.
In the retail segment, it demonstrates strong operational efficiency, achieving robust revenue of Rs 20,500 per square foot, The processing division, though currently underutilized, is slated for investment to expand capacity utilization, as the promoters have indicated. The company exhibits solid long-term visibility. We recommend a ‘subscribe for long term’ rating,” Choice said.
Anand Rathi Shares & Stock Brokers
Rating: Subscribe for long-term
Patel Retail aim to strengthen their retail presence in Maharashtra by deepening market penetration and expanding their store network. Their stores are spread across 17 cities and suburban areas in the Thane and Raigad districts of Maharashtra. Following a cluster-focused expansion strategy, they plan to strengthen their presence in the western suburbs of the MMR, said Anand Rathi.
The issue is valued at a FY25 P/E of 33.6 times. Each retail store offers over 10,000 SKUs, and the company’s strategy focuses on providing a wide product range at value-for-money prices with strong customer service, sustaining competitiveness through everyday low prices driven by efficient procurement, supply, and operations,” it added with a ‘subscribe for long-term’ rating.
Ventura Securities
Rating: Subscribe
Key strengths of Patel Retail include a robust logistics network featuring 18 owned trucks, a central distribution hub, and a proprietary ERP system for efficient inventory management. Its private label brands offer competitive pricing and quality, creating a loyal customer base. It continues to strengthen its foothold in the value retailing segment, said Ventura Securities.
“Patel Retail’s focus on cost-effective pricing, strategic store locations, and a customer-first approach distinguishes it from its competitors in the organized retail sector. Its deep understanding of local market dynamics and customer preferences has been crucial to its success in Maharashtra’s value retail sector,” it added.
Swastika Investmart
Rating: Avoid
Swastika Investmart operates a retail supermarket chain, primarily catering to Tier-III cities and nearby areas. It has diversified into food processing and the export of FMCG and processed food products, said Swastika Investmart. “Based on its financials, the issue appears fully priced. The IPO may be avoided as it has reported inconsistent revenue performance, indicating limited visibility on sustainable growth,” it added.
SBI Securities
Rating: Neutral
Patel Retail is a value-retail focused supermarket chain operating in tier-III cities and nearby suburban areas within the Thane and Raigad districts of Maharashtra. It is looking to expand its presence across the western suburbs of MMR and municipal region of Pune and increase the share of private labels from 17 per cent of FY25 retail sales, said SBI Securities.
“It is valued at post-issue capital FY25 PE of 33.7 times. We assign neutral rating to the stock with likely marginal listing gains based on its cheaper valuation relative to the peers,” it added.
BP Equities
Rating: Subscribe
The current issue is priced at a P/E of 24.8 times, which is lower than most of its peers. Patel Retail’s cost-efficient measures, consumer-centric approach, and growth strategy make it an attractive investment opportunity in India’s rapidly evolving retail landscape, said BP Equities. “We recommend a ‘subscribe’ rating for the issue, with a medium- to long-term horizon,” it added.
Marwadi Financial Services
Rating: Subscribe
“We assign ‘subscribe’ rating to this IPO as the company has diversified portfolio and steady footprint expansion using a distinct store acquisition strategy,” said Marwadi Financial Services. “It is available at reasonable valuation as compared to its peers,” it added.