Patel Retail Limited, a Gujarat-based brick-and-mortar retail chain with deep roots in the Patel community’s rich legacy and entrepreneurial tradition, has opened its Initial Public Offering (IPO) today to raise ₹242.76 Crores. The book built issue includes a fresh issue of 85.18 lakh equity shares (₹217.21 Crores) and an offer for sale (OFS) of 10.02 lakh shares (₹25.55 Crores).
The IPO subscription window opens on August 19, 2025, and will remain open until August 21, 2025. The allotment is scheduled for August 22, 2025, with the shares expected to list on BSE and NSE on August 26, 2025.

The price band has been fixed at ₹237 to ₹255 per share, and the lot size is 58 shares, requiring a minimum application amount of ₹14,790 for retail investors. High-Net-Worth Individuals (HNIs) need to apply for at least 14 lots (₹2,07,060).

Fedex Securities Private Limited is the Book Running Lead Manager, while Bigshare Services Private Limited is acting as the Registrar to the issue.

Business Overview

Patel Retail derives its strength from its founders’ agro-based heritage and long-standing emphasis on community-oriented entrepreneurship. The company has steadily evolved into a regional retail chain that operates in Gujarat with a focus on affordable daily essentials and fast-moving consumer goods (FMCG).
By offering multiple product categories—such as groceries, personal care, household items, packaged food and staples—the company has positioned itself as a reliable neighborhood retail destination for households across its operational clusters.

The promoters Dhanji Raghavji Patel, Bechar Raghavji Patel, and Hiren Bechar Patel collectively bring over 60 years of experience in the sector. Their familiarity with the region’s business culture and consumer preferences has enabled the company to broaden its footprint and develop strong supplier relationships.

Financial Performance

Patel Retail has exhibited steady financial growth over the last three years:

While revenue dipped in FY24 compared to FY23 due to macroeconomic disruption, it rebounded in FY25 with improvement in operating margins and profitability. A post-issue price-to-earnings (P/E) ratio of 33.69× suggests that the IPO is fairly valued, particularly when compared with the industry P/E of 52×.

IPO Objectives

The company intends to utilise the IPO proceeds as follows:

• ₹59.00 crore – Repayment/prepayment of certain outstanding borrowings

• ₹115.00 crore – Funding working capital requirements, driven by increase in inventory and expansion

• Balance amount – General corporate purposes, including branding and business expansion initiatives

Grey Market Premium (GMP)

At present, the Grey Market Premium (GMP) stands at ₹0, which indicates that no listing premium is being priced in by informal market participants. This reflects a neutral market sentiment and suggests a possibility of a flat listing unless the subscription significantly improves by the end of the offer period.

Outlook and Recommendation

Patel Retail’s IPO is backed by a solid operational history, experienced promoters, and a strong regional presence in Gujarat. The company’s improving profitability and disciplined approach to cost management indicate that there is potential for long-term value creation, especially if the company succeeds in expanding its store network and enhancing supply-chain logistics.

However, in the short term, the IPO appears fully priced, and the absence of a Grey Market Premium indicates that listing gains are unlikely.
Therefore:

• Short-term or listing-gain oriented investors may consider avoiding the IPO

• Long-term investors with high conviction in the growth of regional retail chains may evaluate the opportunity based on improving fundamentals and expansion strategy

If you would like a subscription trend tracker or a comparison of Patel Retail with peers such as V-Mart, Avenue Supermarts and Spencer’s Retail, feel free to ask.

The Upcoming IPOs in this week and coming weeks are Shivashrit Foods, ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Studio LSD.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.