The Patel Retail Limited IPO has drawn notable attention from investors across categories, with the issue being subscribed 11.07 times on its final day despite a muted performance in the Grey Market Premium (GMP). Emerging from Gujarat’s Patel community, which has historically been associated with farming, business acumen, and resilience, Patel Retail represents a modern shift towards organized retail growth.

IPO Structure and Issue Size

The IPO size stands at ₹242.76 Crores, divided into:

• Fresh Issue: 85.18 lakh shares worth ₹217.21 Crores.

• Offer for Sale (OFS): 10.02 lakh shares worth ₹25.55 Crores.

The subscription window opened on August 19, 2025 and closed on August 21, 2025, attracting strong demand across Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Investors.

The price band was set between ₹237 and ₹255 per share, with a lot size of 58 shares. This meant a minimum retail investment of ₹14,790, while HNIs needed to apply for 14 lots (812 shares) amounting to ₹2,07,060. At the upper band of ₹255, the company’s market capitalisation stands at ₹851.71 Crores.

Key Managers

The IPO is led by Fedex Securities Private Limited as the Book Running Lead Manager (BRLM) and Bigshare Services Private Limited as the Registrar. Their role ensures compliance, proper allocation, and smooth execution of the IPO.

Subscription Performance

By the close of bidding on August 21, 2025, the IPO was subscribed 11.07 times in total, showing strong investor participation. This high figure reflects confidence in Patel Retail’s business fundamentals and sector growth potential.

Anchor Investor Participation

On August 18, 2025, Patel Retail successfully raised ₹43.46 Crores from Anchor Investors at ₹255 per share, allotting 17,04,388 shares. Anchor participation not only provides confidence but also demonstrates institutional support before the IPO opens to the wider market.

Grey Market Premium (GMP)

The GMP for Patel Retail IPO remained at ₹0, highlighting that no premium or discount was available in the unofficial market. Although many investors track GMP to anticipate listing gains, experts caution that GMP is speculative, unregulated, and does not guarantee actual performance on listing day.

Allotment and Listing Timeline

The allotment date for Patel Retail IPO is set for August 22, 2025 (Friday). Investors can check allotment status online through the registrar’s portal by entering their Application Number, PAN, or DP Client ID.

The listing date is tentatively scheduled for August 26, 2025 (Tuesday) on both the BSE and NSE, when the shares will make their market debut.

Financial Performance

The company’s performance over the past three financial years reflects stability and profit growth:

• Revenue from Operations: ₹82,599.01 Lakh (FY 2025), ₹81,771.25 Lakh (FY 2024), ₹1,01,980.36 Lakh (FY 2023).

• EBITDA: ₹6,243.27 Lakh (FY 2025), ₹5,583.95 Lakh (FY 2024), ₹4,323.96 Lakh (FY 2023).

• Profit After Tax (PAT): ₹2,527.81 Lakh (FY 2025), ₹2,253.34 Lakh (FY 2024), ₹1,637.97 Lakh (FY 2023).

While revenues showed a dip between FY 2023 and FY 2024, profitability improved steadily, showing operational efficiency and strong margin control.

Valuation Metrics

The valuation indicates fair pricing when compared with industry averages:

• Pre-Issue EPS: ₹10.3

• Post-Issue EPS: ₹7.57

• Pre-Issue P/E: 24.75x

• Post-Issue P/E: 33.69x

• Industry Average P/E: 52x

Additionally, the company has shown an ROCE of 14.43% and ROE of 19.02% in FY 2024, positioning itself as a stable player within the retail sector.

Use of Proceeds

The objectives of the IPO include:

1. ₹5,900.00 Lakh towards repayment or prepayment of borrowings.

2. ₹11,500.00 Lakh towards funding working capital requirements.

3. The remaining proceeds for general corporate purposes.

This planned utilisation reflects a balanced approach toward reducing debt while strengthening liquidity for future operations.

IPO Review and Recommendation

Although the IPO was strongly subscribed, the absence of GMP premium is a signal that listing gains may be limited. Analysts recommend caution for investors targeting only short-term profits. However, the steady profitability, reasonable valuation, and sectoral growth opportunities suggest that the IPO may be attractive for medium to long-term investors.

The Patel Retail IPO subscription status, allotment date, GMP trend, and listing details together show a company with a firm foundation and investor interest, albeit without speculative hype in the grey market.

In conclusion, Patel Retail IPO is not expected to deliver significant listing gains, but its financial discipline, growth potential, and strong fundamentals make it a reasonable consideration for long-term investors who value stability over speculative returns.

The Upcoming IPOs in this week and coming weeks are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Anondita Medicare, Classic Electrodes (India), Vikran Engineering, Shivashrit Foods.

The Current active IPO are ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

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