Patel Retail IPO: GMP today
Shares of Patel Retail are commanding a grey market premium (GMP) of around 18%, indicating decent listing gains if trends hold.However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Patel Retail IPO: Should you invest?
SBI Securities has recommended a ‘Neutral’ rating to the IPO, citing that while the valuation at the upper price band (33.7x FY25 earnings) is relatively cheaper compared to listed peers such as Avenue Supermarts, Patel Retail’s regional concentration risk, dependency on key customers, and high working capital requirements pose challenges.
The brokerage firm expects only marginal listing gains and advises investors to take a cautious approach.
According to Anand Rathi, Patel Retail aims to strengthen their retail presence in Maharashtra by deepening market penetration and expanding their store network.
Each retail store offers over 10,000 SKUs, and the company’s strategy focuses on providing a wide product range at value-for-money prices with strong customer service, sustaining competitiveness through everyday low prices driven by efficient procurement, supply, and operations.
Based on these factors, the IPO appears fully priced, the brokerage said, with a ‘Subscribe – long term’ recommendation.
Patel Retail IPO: Anchor round
Patel Retail collected over ₹43 crore from anchor investors, ahead of its issue opening for subscription.
The investors participated in the anchor round included Chanakya Opportunities Fund, BNP Paribas Financial Markets, Maybank Securities, Beacon Stone Capital, Saint Capital Fund and Pine Oak Global Fund.
Patel Retail IPO: Other details
The company’s IPO includes a mix of a fresh issue of 85.18 lakh shares and an offer for sale of 10.02 lakh shares of promoters.
Post-issue, the company’s market capitalisation is expected in the range of ₹792-852 crore.
Proceeds from the fresh issuance will be used for payment of debt, funding of working capital requirements of the company and for general corporate purposes.
Company details
Patel Retail was established in 2008, launching its inaugural store in Ambernath, Maharashtra. Since then, it has expanded its operations throughout the suburban regions of Thane and the Raigad district in Maharashtra.
The company provides a diverse range of products including food, non-food items, general merchandise and apparel to meet the needs of families. It operates in tier-III cities and nearby suburban areas under the brand ‘Patel’s R Mart’. It operated and managed 43 stores as on May 31, 2025.
Patel Retail’s revenue rose to ₹820.69 crore in fiscal 2025 from ₹814 crore in the preceding financial year. Profit after tax surged to ₹25.28 crore from ₹22.53 crore.
Fedex Securities is the sole book-running lead manager, and Bigshare Services is the registrar of the offer.
The allotment for the Patel Retail IPO is expected to be finalised on August 22. Shares of the supermarket chain are slated to begin trading on the bourses from August 26.
