Strong Start! Patel Retail shares debut at 20% premium at Rs 305

Shares of Patel Retail debuted on Tuesday with a 19.6% premium over its issue price of Rs 255. The stock listed at Rs 305 on the BSE, meanwhile, it opened at Rs 300 on NSE.

The company's Rs 242.76 crore initial public offering (IPO) saw overwhelming demand from investors. The IPO proceeds will be used for repayment/prepayment of borrowings (Rs 59 crore), funding working capital requirements (Rs 115 crore) and general corporate purposes.

Strong subscription response

The IPO, which opened on August 19 and closed on August 21, was subscribed an impressive 95.69 times. The Qualified Institutional Buyers (QIB) portion led the demand, getting oversubscribed 272.14 times, while Non-Institutional Investors (NII) subscribed 108.11 times. The retail segment also saw robust participation with 42.55 times subscription.

Ahead of the IPO, the company raised Rs 43.46 crore from anchor investors on August 18.

About the company

Founded in 2008, Patel Retail operates a tier-III city-focused supermarket chain, with 43 stores across Maharashtra and Gujarat under the brand “Patel’s R Mart.” The stores sell food and FMCG products, apparel, and household items.

To strengthen margins, the company has also launched private label products such as “Patel Fresh” (pulses, ready-to-cook items), “Indian Chaska” (spices, ghee, papad), “Blue Nation” (men’s wear), and “Patel Essentials” (home improvement).

Financials

For FY25, Patel Retail reported revenues of Rs 826 crore, up slightly from Rs 818 crore in FY24. Net profit rose 12% year-on-year to Rs 25.28 crore.

Post-IPO, the company’s market capitalization is expected to be Rs 851.71 crore.

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