Patel Retail IPO Subscription Begins — Check GMP, Issue Size, and Financials

Patel Retail’s ₹243 crore IPO opened for subscription today, August 19, with a price band of ₹237–₹255 per share. The issue will close on Thursday, August 21. Market trackers report a grey market premium (GMP) of about 14%, suggesting modest listing gains if current sentiment persists.

IPO Structure & Key Details ✦

The public issue comprises:

♦ Fresh issue: ₹217 crore

♦ Offer for sale (OFS): ₹26 crore

♦ Total shares: ~95.2 lakh equity shares at the upper price band

Post-issue, Patel Retail’s market cap is projected at ₹792–₹852 crore. Investors can bid for a minimum lot of 58 shares and multiples thereof.

Funds raised will be allocated for:

♦ Debt repayment — ₹59 crore

♦ Working capital — ₹109 crore

♦ General corporate purposes — balance amount

Company Overview 🛒

Established in 2008, Patel Retail operates a value-focused supermarket chain in Maharashtra’s tier-III cities and suburban belts of Thane and Raigad. Starting from its first Ambernath store, the company has grown to 43 outlets covering 1.79 lakh sq. ft. retail space (as of May 2025).

The retailer stocks over 10,000 SKUs spanning 38 product categories, including food, FMCG, apparel, and general merchandise. To boost margins, Patel Retail has introduced private labels such as:

♦ Patel Fresh

♦ Indian Chaska

♦ Blue Nation

♦ Patel Essentials

These are processed and packaged at its Ambernath facility.

The company also exports products to 35+ countries. In FY25, retail operations accounted for 45% of total revenue, while manufacturing, processing, and trading contributed 54%.

Financial Highlights 📊

♦ Revenue (FY25): ₹821 crore

♦ Profit after tax (FY25): ₹25.3 crore (vs ₹22.5 crore in FY24)

♦ EBITDA: ₹57.1 crore, margins at 7%

♦ Debt-equity ratio: Improved from 2.0x (FY24) to 1.3x (FY25), showing a stronger balance sheet.

Valuation & Analyst Views 🧮

At the upper price band, Patel Retail is valued at 33.7x FY25 earnings.

Brokerage firm SBI Securities has given a ‘Neutral’ rating, citing:

♦ Pros: Cheaper valuation vs peers like Avenue Supermarts, improving profitability, reduced leverage.

♦ Risks: High regional concentration, reliance on key customers, and heavy working capital needs.

Conclusion: Analysts expect only marginal listing gains and advise a cautious approach for investors.