Patel Retail Limited is launching its Initial Public Offering (IPO) to raise funds for its working capital requirements and to reduce its debts. The issue comprises a fresh issue of 0.85 crore equity shares totaling Rs. 215.91 crore and an offer for sale of 0.10 crore shares worth Rs. 25.55 crore.
The total offer size aggregates up to Rs. 241.46 crore. The IPO opens for subscription on August 19, 2025, and closes on August 21, 2025. The shares will be listed on NSE and BSE on Tuesday, August 26, 2025. Here’s everything you need to know.
GMP of Patel Retail Limited IPO
As of August 19th, 2025, the shares of Patel Retail Limited in the grey market were trading at a 17.65 percent premium, at Rs. 300. This gives it a premium of Rs. 45 per share over the cap price of Rs. 255.
Overview of Patel Retail Limited
Patel Retail Limited was started in 2008 and runs a chain of supermarkets mainly in tier-III cities and nearby suburban areas. The company’s stores, known as “Patel’s R Mart,” sell food, FMCG products, clothing, and general household items. As of May 31, 2025, the company had 43 stores across Thane and Raigad districts in Maharashtra, covering about 178,946 square feet of retail space.
The company has also created its own private brands to improve margins and build customer trust. These include “Patel Fresh” for pulses and ready-to-cook items, “Indian Chaska” for spices and ghee, “Blue Nation” for men’s wear, and “Patel Essentials” for household goods. These brands help the company stand out and attract repeat buyers.
To support its retail network, the company operates three main facilities. The Ambernath unit handles packaging and processing, while the Dudhai unit in Gujarat focuses on agri-products. The Kutch Agri-Processing Cluster includes warehouses, cold storage, and testing labs to ensure quality and smooth supply.
The company positions itself as a neighbourhood supermarket, meeting both daily shopping needs and bulk purchases. With 38 product categories and 10,000 SKUs, the company serves a wide customer base. Most of its sales come from Maharashtra and Gujarat, but the company is working to expand further with strong distribution and private brand growth.
Promoters of Patel Retail Limited
The promoters of Patel Retail Limited are Dhanji Raghavji Patel, Bechar Raghavji Patel, Hiren Bechar Patel, and Rahul Dhanji Patel. They bring over two decades of retail industry experience. Their leadership focuses on expanding the company’s presence in Gujarat and neighboring states.
Selling Shareholders of Patel Retail Limited
The IPO of Patel Retail Limited features an Offer for Sale by its promoters. Promoter Dhanji Raghavji Patel will offload up to 7.68 lakh shares, while promoter Bechar Raghavji Patel plans to sell up to 2.34 lakh shares.
No other promoter group members are participating in the Offer for Sale. The remaining portion of the issue comprises the fresh issue of shares intended to finance the company’s business objectives.
Lead Managers of Patel Retail Limited IPO
The book-running lead manager of the Patel Retail Limited IPO is Fedex Securities Private Limited. The registrar of the issue is Bigshare Services Private Limited.
Objectives of the IPO Offer
Patel Retail Limited plans to utilize the IPO proceeds for three key objectives. The company will allocate Rs. 59 crore towards repayment or prepayment of certain borrowings to reduce debt and strengthen its balance sheet.
An additional Rs. 115 crore will be used to fund working capital requirements, ensuring smoother operations and business expansion. The remaining funds will go towards general corporate purposes, supporting overall growth and strategic initiatives.
Financial Analysis of Patel Retail Limited
Patel Retail Limited’s revenue has increased from Rs. 814.18 crore in FY24 to Rs. 820.69 crore in FY25, which represents a growth of 0.80 percent. The net profit has increased by 12.21 percent, from Rs. 22.53 crore in FY24 to Rs. 25.28 crore in FY25.
The basic earnings per share increased by 11.47 percent and stood at Rs. 10.30 in FY25 as against Rs. 9.24 recorded in FY24. In terms of return ratios, the company’s ROCE and ROE stand at 14.43 percent and 19.02 percent, respectively. Patel Retail Limited’s debt-to-equity ratio is 1.34x.
Patel Retail vs Peers
Patel Retail Limited reported an EPS of Rs. 10.30 and a RoNW of 19.02 percent. In comparison, Vishal Mega Mart Limited’s EPS of Rs. 1.40, and its RoNW of 9.87 percent. Avenue Supermarts Limited reported Rs. 41.61 EPS, and a RoNW of 12.64 percent.
The company also has other peers like Spencers Retail Limited, Osia Hyper Retail Limited, Aditya Consumer Marketing Limited, Sheetal Universal Limited, Kovilpatti Lakshmi Roller Flour Mills Limited, KN Agri Resources Limited, and Madhusudhan Masala Limited.
The company’s net asset value per share is Rs. 54.08, compared to Rs. 13.92 for Vishal Mega Mart Limited, Rs. 329.27 for Avenue Supermarts Limited, and Rs. 140.60 for KN Agri Resources Limited.
Strengths of Patel Retail Limited
- Strong regional presence in Maharashtra and Gujarat ensures a loyal and repeat customer base.
- Private label brands increase margins and strengthen brand recall among diverse customer groups.
- Integrated manufacturing and processing facilities support quality control and reliable product supply.
- Experienced promoters provide long-term vision and leadership in retail and distribution growth.
- Wide product portfolio across 38 categories and 10,000 SKUs meets varied customer needs.
Weaknesses of Patel Retail Limited
- Heavy reliance on Maharashtra and Gujarat limits nationwide scale and revenue diversification.
- Smaller size compared to national retailers reduces competitiveness in larger organized markets.
- Thin profit margins expose the company to risks from rising costs and price competition.
- Limited online presence restricts growth in fast-growing e-commerce and digital retail channels.
- High competition from organized and unorganized retailers increases pressure on pricing and margins.
Conclusion
Patel Retail Limited’s IPO offers investors potential access to a growing retail player with diversified operations. The company’s focus on supply chain strength and regional dominance supports growth prospects. Investors should analyze financials, peer comparisons, and risks before subscribing to the IPO. This offering aligns with Patel Retail’s ambition to expand and compete effectively in India’s dynamic retail landscape.
Written By – Nikhil Naik
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