The IPO comprises a fresh issue of Rs 217 crore and an offer for sale of Rs 26 crore, translating into a total of 95.2 lakh equity shares at the upper end of the band. Post-issue, the company’s market capitalisation is expected in the range of Rs 792–852 crore. Investors can bid for a minimum of 58 shares and in multiples thereof.
Proceeds from the issue will be utilised for debt repayment (₹59 crore), working capital needs (₹109 crore), and general corporate purposes.
Company snapshot
Founded in 2008, Patel Retail runs a value-focused retail supermarket chain concentrated in tier-III cities and suburban belts of Thane and Raigad districts in Maharashtra. From its first store in Ambernath, the company has expanded to 43 outlets with nearly 1.79 lakh sq. ft. retail space as of May 2025.
The retailer sells over 10,000 SKUs across 38 product categories, covering food, FMCG, apparel, and general merchandise. To strengthen margins, Patel Retail has launched private labels such as Patel Fresh, Indian Chaska, Blue Nation, and Patel Essentials, which are also processed and packaged at its Ambernath facility.
In FY25, its retail segment contributed 45% of total revenue, while the non-retail segment (manufacturing, processing, and trading) accounted for 54%. The company also exports products to more than 35 countries.
Financial performance
Despite muted topline growth, Patel Retail has improved profitability. Revenue stood at Rs 821 crore in FY25, while profit after tax rose to Rs 25.3 crore from Rs 22.5 crore in FY24. EBITDA increased to Rs 57.1 crore, with margins improving to 7%.The company reduced its debt-equity ratio from 2.0x in FY24 to 1.3x in FY25, reflecting improved balance sheet strength.
Should you subscribe?
Brokerage house SBI Securities has assigned a ‘Neutral’ rating on the IPO, noting that while the valuation at the upper price band (33.7x FY25 earnings) is relatively cheaper compared to listed peers such as Avenue Supermarts, Patel Retail’s regional concentration risk, dependency on key customers, and high working capital requirements pose challenges.
The brokerage expects only marginal listing gains and advises investors to take a cautious approach.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)