RSB Retail India Ltd, a leading multi-brand retail chain in South India, has filed its draft red herring prospectus (DRHP) with market regulator Sebi for an initial public offering (IPO) worth about ₹1,500 crore.
The IPO will consist of a fresh equity issue of up to ₹500 crore and an offer for sale (OFS) of 2.98 crore shares by the promoters.
IPO Proceeds Utilisation
- ₹275 crore will be used to repay debt.
- ₹118 crore will go towards opening new stores under its R S Brothers and South India Shopping Mall brands.
- The remaining funds will be used for general corporate purposes.
Company Overview
Founded in 2008 and headquartered in Hyderabad, RSB Retail operates across 73 stores in 22 cities within Telangana, Andhra Pradesh, and Karnataka under formats such as South India Shopping Mall, R.S. Brothers, Kanchipuram Narayani, Silks, Dé Royal, and Value Zone Hyper Mart.
The company reported revenues of ₹2,694 crore and a net profit of ₹104.4 crore in FY25. It serves premium, mid-premium, and value segments with a portfolio covering ethnic, casual, and formal apparel.
Retail Market Outlook
Citing a Technopak report, RSB highlighted that India’s retail market is projected to touch ₹92.6 lakh crore in FY25, with apparel and accessories accounting for ₹6.9 lakh crore. South India contributed 28% of the apparel market in FY24, valued at ₹1.72 lakh crore, and is expected to grow at a 12% CAGR to ₹3.05 lakh crore by FY29.
Motilal Oswal Investment Advisors, HDFC Bank, and IIFL Capital Services are the lead managers for the IPO.
✅ Disclaimer: This article is for informational purposes only. It should not be considered as investment advice. Please consult a certified financial advisor before making investment decisions.
