Patel Retail IPO GMP today
The latest grey market premium (GMP) for Patel Retail IPO stands at Rs 45. Based on the upper end of the price band, which is Rs 255 per share, the stock’s estimated listing price is around Rs 300. This suggests a potential gain of approximately 17.65% per share for investors if the current sentiment holds. The GMP is an unofficial indicator of market sentiment ahead of listing. While it provides insight into investor expectations, it is not a guaranteed measure of actual listing performance and may fluctuate before the IPO lists.
Patel Retail IPO subscription status
As of 10:40 AM on Day 1 of the subscription period, Patel Retail’s IPO had received an overall subscription of 45%, indicating moderate investor response in the early hours.
- Retail individual investors (RIIs): This category saw a 54% subscription out of the 42.61 lakh shares reserved for them, reflecting decent interest from small investors.
- Non-institutional investors (NIIs): Subscriptions from this segment reached 67% of the 23.67 lakh shares allocated, showing strong participation from high-net-worth individuals and other non-retail investors.
- Qualified institutional buyers (QIBs): This category had not yet placed any bids for the 11.36 lakh shares reserved for them as of the latest update.
Patel Retail IPO structure and fund utilization
Patel Retail’s IPO comprises a fresh issue of Rs 217 crore and an offer for sale (OFS) worth Rs 26 crore, making the total issue size Rs 243 crore. At the upper end of the price band (Rs 255 per share), this translates into the issuance of approximately 95.2 lakh equity shares.
Post-IPO, the company’s market capitalization is estimated to be in the range of Rs 792 crore to Rs 852 crore, depending on the final issue price. Investors can bid for a minimum of 58 equity shares and in multiples thereof, making it accessible to retail participants.
Regarding fund utilization, the company plans to allocate Rs 59 crore toward repayment of existing debt, helping reduce interest burdens and strengthen its balance sheet. Another Rs 109 crore will be used to meet working capital requirements, supporting day-to-day operations and business expansion. The remaining funds will be directed toward general corporate purposes, offering flexibility for strategic initiatives and operational needs.
Company snapshot
Established in 2008, Patel Retail operates a value-driven supermarket chain, primarily targeting tier-III cities and suburban areas within Maharashtra’s Thane and Raigad districts. Starting with its first store in Ambernath, the company has grown steadily, reaching 43 outlets and covering approximately 1.79 lakh sq. ft. of retail space as of May 2025.
Patel Retail offers a wide product mix, with over 10,000 stock-keeping units (SKUs) across 38 product categories, including food, FMCG, apparel, and general merchandise. To boost margins and brand identity, the company has introduced private-label brands such as Patel Fresh, Indian Chaska, Blue Nation, and Patel Essentials—many of which are processed and packaged at its Ambernath facility.
In terms of business contribution, the retail segment generated 45% of total revenue in FY25, while the non-retail segment—comprising manufacturing, processing, and trading activities—accounted for 54%. Additionally, the company has expanded its reach globally, exporting products to over 35 countries.
Financial performance
While overall revenue growth remained modest, Patel Retail demonstrated notable improvement in profitability. In FY25, the company reported revenue of Rs 821 crore, with profit after tax rising to Rs 25.3 crore, up from Rs 22.5 crore in FY24. EBITDA increased to Rs 57.1 crore, and EBITDA margins improved to 7%, signaling enhanced operational efficiency.
Further strengthening its financial position, Patel Retail successfully reduced its debt-to-equity ratio from 2.0x in FY24 to 1.3x in FY25, reflecting a more stable and healthier balance sheet.
Should you subscribe?
Brokerage house SBI Securities has assigned a ‘Neutral’ rating to 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 Economic Times)