The retail sector in India is experiencing a significant boom, driven by rising consumer demand, particularly in smaller cities. Against this backdrop, several companies are turning to the public markets for growth capital. One such offering is from Patel Retail Ltd., which is set to open its IPO on August 19, 2025.
This article will provide a detailed look at the Patel Retail IPO details, including its business model, financials, and an industry overview to help you assess its investment potential.
About Patel Retail Ltd.
Founded in 2008, Patel Retail Ltd. operates a chain of supermarkets primarily under the brand “Patel’s R Mart” in Tier-III cities and suburban areas of Maharashtra. The company’s business model is centred on “value retail,” offering a wide range of products including food, non-food items, FMCG, and apparel. They have a strong focus on backwards integration, with their own food processing units in Gujarat and Maharashtra. This allows them to manage their private label brands such as “Patel Fresh” and “Indian Chaska.” With over 40 stores and a strong logistics network, Patel Retail is strategically positioned to serve underserved markets and has a diversified product portfolio.
Patel Retail Ltd. IPO Details
The Patel Retail IPO is a book-built issue of 95,20,000 shares, with a fresh issue of 0.85 lakh shares and an Offer for Sale (OFS) of 0.10 crore lakh shares, aiming to raise a total of ₹242.76 crore. The Patel Retail IPO proceeds will be used for debt repayment, working capital, and general corporate purposes. The company will be listed on both the BSE and NSE.
Key IPO Details
| Event | Date |
| IPO Open Date | Tue, Aug 19, 2025 |
| IPO Close Date | Thu, Aug 21, 2025 |
| Tentative Allotment | Fri, Aug 22, 2025 |
| Initiation of Refunds | Mon, Aug 25, 2025 |
| Credit of Shares to Demat | Mon, Aug 25, 2025 |
| Tentative Listing Date | Tue, Aug 26, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 21, 2025 |
Important IPO Timeline
| Event | Details |
| IPO Date | August 19, 2025 to August 21, 2025 |
| Listing Date | – |
| Face Value | ₹10 per share |
| Issue Price Band | ₹237 to ₹255
per share |
| Lot Size | 58 Shares |
| Sale Type | Fresh Capital-cum-Offer for Sale |
| Total Issue Size | 95,20,000 shares (aggregating up to ₹242.76 Cr) |
| Reserved for Employees | 51,000 shares (aggregating up to ₹1 Cr) |
| Fresh Issue | 84,67,000 shares (aggregating up to ₹215.91 Cr) |
| Offer for Sale | 10,02,000 shares of ₹10 (aggregating up to ₹25.55 Cr) |
| Net Offered to Public | 94,69,000 shares (aggregating up to ₹241.46 Cr) |
| Employee Discount | ₹20.00 |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 2,48,82,528 shares |
| Share Holding Post Issue | 3,34,00,528 shares |
Company Financial Snapshot
Patel Retail has shown consistent growth in profitability, with profit after tax (PAT) increasing by over 12% between the financial years ending March 31, 2024, and March 31, 2025. While revenue saw a decline from FY23 to FY24, it showed a modest increase in FY25.
| Period Ended | 31 Mar 2025 (₹ Cr) | 31 Mar 2024 (₹ Cr) | 31 Mar 2023 (₹ Cr) |
| Assets | 382.86 | 333.02 | 303.12 |
| Total Income | 825.99 | 817.71 | 1,019.80 |
| Profit After Tax | 25.28 | 22.53 | 16.38 |
| EBITDA | 62.43 | 55.84 | 43.24 |
| Net Worth | 134.57 | 94.4 | 71.87 |
| Total Borrowing | 180.54 | 185.75 | 182.81 |
Key Performance Indicators (as of Mar 31, 2025)
- ROE: 19.02%
- ROCE: 14.43%
- Debt/Equity: 1.34
- RoNW: 19.02%
- PAT Margin: 3.08%
- EBITDA Margin: 7.61%
- Price to Book Value: 4.72
Patel Retail IPO Peer Comparison
Patel Retail Ltd. operates in the highly competitive retail industry, with relevant peers including Spencer’s Retail Ltd., Osia Hyper Retail Ltd., Aditya Consumer Marketing Ltd., Sheetal Universal Ltd., Kovilpatti Lakshmi Roller Flour Mills Ltd., KN Agri Resources Ltd., Madhusudan Masala Ltd., and Vishal Mega Mart Ltd. These companies, like Patel Retail, are key players in the retail and consumer goods sector, offering a wide range of products across various categories. Patel Retail differentiates itself through its unique retail strategies, market positioning, and customer base. Investors should consider the relative growth prospects, competitive strategies, and financial health of these companies when evaluating the Patel Retail IPO.
Use of IPO Proceeds
The Patel Retail IPO proceeds will be used to strengthen its financial position and support its expansion strategy. Approximately ₹59 crore will be used to repay existing borrowings, and ₹115 crore will be allocated to funding its working capital requirements.
| S.No. | Objects of the Issue | Expected Amount
(₹ in Crores) |
| 1 | Repayment or prepayment (in full or in part) of the Company’s outstanding borrowings | 59 |
| 2 | Financing the working capital needs of the Company | 115 |
| 3 | Allocation for general corporate purposes | – |
Conclusion
Patel Retail IPO presents an opportunity for investors to get a slice of the growing Indian retail sector, with a specific focus on value-conscious consumers in suburban and Tier-III markets. The company’s strong footprint in these high-growth regions, coupled with its efficient backward integration and private label strategy, positions it for future expansion. However, as with all investments, it is crucial to conduct your own due diligence and consider the associated risks, such as high competition and potential supply chain disruptions. This IPO may be a compelling option for investors with a long-term growth outlook in the consumer goods and retail space.
