Patel Retail, the Maharashtra-based supermarket chain, saw its ₹243 crore Initial Public Offering (IPO) fully subscribed within hours of opening on Tuesday. By 12 PM, the issue was subscribed 1.40 times, indicating robust investor interest. The IPO is currently trading at a grey market premium (GMP) of around ₹45, suggesting strong unofficial market demand. The price band for the IPO is set between ₹237 and ₹255 per share, and the subscription window will close on Thursday, August 21.
Grey Market Sentiment
With the current GMP of ₹45 and the upper end of the price band at ₹255, Patel Retail shares are expected to list at approximately ₹300, implying a potential gain of nearly 17.65% for investors. While the GMP provides an unofficial indication of market sentiment, it is not a guaranteed predictor of actual listing performance and may fluctuate before the shares debut.
IPO Subscription Details
On the first day:
- Retail Individual Investors (RIIs): Subscribed 1.57 times, with bids for 67.06 lakh shares against 42.81 lakh reserved.
- Non-Institutional Investors (NIIs): Subscribed 2.20 times, with bids for 52.01 lakh shares against 23.67 lakh reserved.
- Qualified Institutional Buyers (QIBs): Subscribed 6.85 times, with bids for 77.88 lakh shares against 11.36 lakh reserved.
IPO Structure and Fund Utilization
The IPO comprises a fresh issue of ₹217 crore and an offer for sale (OFS) of ₹26 crore, totaling ₹243 crore. At the upper price band, approximately 95.2 lakh equity shares will be issued. Post-IPO, Patel Retail’s market capitalization is estimated between ₹792 crore and ₹852 crore.
The company plans to use:
- ₹59 crore to repay existing debt, reducing interest obligations and strengthening the balance sheet
- ₹109 crore to support working capital requirements for daily operations and expansion
- The remaining funds for general corporate purposes
Company Overview
Founded in 2008, Patel Retail operates 43 outlets covering around 1.79 lakh sq. ft., primarily in tier-III cities and suburban areas of Thane and Raigad districts, Maharashtra. The supermarket chain offers over 10,000 SKUs across 38 categories, including food, FMCG, apparel, and general merchandise. To enhance margins, the company has developed private-label brands such as Patel Fresh, Indian Chaska, Blue Nation, and Patel Essentials, many processed at its Ambernath facility.
Retail contributed 45% to total revenue in FY25, while the non-retail segment—including manufacturing, processing, and trading—accounted for 54%. The company also exports products to over 35 countries.
Financial Performance
Patel Retail reported revenue of ₹821 crore in FY25, with profit after tax rising to ₹25.3 crore from ₹22.5 crore in FY24. EBITDA improved to ₹57.1 crore, with margins reaching 7%. The debt-to-equity ratio was reduced from 2.0x in FY24 to 1.3x in FY25, signaling a healthier financial position.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should consult certified financial experts before making any decisions.
