Patel Retail IPO will open for subscription on August 19, 2025, and close on August 21, 2025. Patel Retail Limited, incorporated in 2008, is a supermarket chain that operates mainly in tier-III cities and nearby suburban areas.
The company’s stores cater to daily needs across categories such as food, non-food, FMCG, general merchandise, and apparel. Its first outlet under the brand name “Patel’s R Mart” was launched in Ambernath, Maharashtra.
This IPO update will be followed by further details on the issue size, price band, financial performance, expansion plans, and category-wise demand outlook once the final prospectus and related disclosures are released.
Patel Retail IPO Date
The key pointers for the Patel Retail IPO dates are:
- Bidding Opening Date: August 19, 2025
- Bidding Closing Date: August 21, 2025
- Allotment Date: August 22, 2025
- Initiation of Refunds (in case of less or no allotment): August 25, 2025
- Shares Credited to Your Demat Account: August 25, 2025
- IPO Listing Date: August 26, 2025
- Listing on Exchange: BSE and NSE
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Patel Retail: IPO Issue Size
Patel Retail IPO valuation, as denoted by the market capitalisation, stood at ₹851.71 crores. Here are the important details:
- Patel Retail IPO Price Band: ₹237 to ₹255 per share
- Lot Size: 58 Shares
- Issue Size and Amount: 95,20,000 shares (aggregating up to ₹242.76 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)
Patel Retail IPO Proceeds Usage
The net proceeds from the Patel Retail IPO are proposed to be utilised for the following purposes:
- To repay or prepay, either fully or partially, specific borrowings taken by the company.
- To provide funding for the company’s working capital needs.
- To meet general corporate requirements.
Patel Retail IPO Reservations
Patel Retail IPO reservations to different investors are:
- For QIBs: Not more than 30% of the Net Offer
- For NIIs: Not less than 25% of the Net Offer
- For Retail Investors: Not less than 45% of the Net Offer
Patel Retail IPO Lot Size
Patel Retail IPO lot size is 58 shares, wherein bidding can be done in multiples. The minimum amount that each category of investor needs to bid in this IPO is:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 58 | ₹14,790 |
| Retail (Max) | 13 | 754 | ₹1,92,270 |
| S-HNI (Min) | 14 | 812 | ₹2,07,060 |
| S-HNI (Max) | 67 | 3,886 | ₹9,90,930 |
| B-HNI (Min) | 68 | 3,944 | ₹10,05,720 |
Patel Retail IPO Details: Promoter Holding
Dhanji Raghavji Patel, Bechar Raghavji Patel, Hiren Bechar Patel, and Rahul Dhanji Patel are the company promoters.
Patel Retail IPO: Company Overview
Patel Retail Limited, established in 2008, is a supermarket chain that mainly serves tier-III cities and nearby suburban areas. Its stores offer a wide variety of products, including food, FMCG items, general merchandise, and apparel.
The first store under the name “Patel’s R Mart” was launched in Ambernath, Maharashtra. As of May 31, 2025, the company operates 43 stores across suburban parts of Thane and Raigad districts in Maharashtra, covering a total retail space of about 1,78,946 square feet.
To improve margins and build its brand, Patel Retail has introduced several private label ranges such as “Patel Fresh” for pulses and ready-to-cook items, “Indian Chaska” for spices, ghee, and papad, “Blue Nation” for men’s wear, and “Patel Essentials” for home improvement products.
Manufacturing Units
The company runs three main facilities to support its retail operations and private label production. The Ambernath facility in Maharashtra manages processing, quality checks, and packaging of products like pulses, ready mixes, and other grocery items.
In Dudhai, Kutch, Gujarat, one unit processes agricultural products such as peanuts, coriander seeds, and cumin seeds, forming part of the company’s backward integration approach. The Agri-Processing Cluster in Dudhai spans 15.925 acres.
It includes five production units, a fruit pulp processing facility, a dry warehouse with a capacity of 3,040 MT, a cold storage unit with a 3,000 MT capacity, and an in-house testing and research lab. Together, the Dudhai unit and Agri-Processing Cluster are referred to as the Kutch Facilities.
Positioning and Strengths
Patel Retail positions itself as a neighbourhood supermarket that serves both daily needs and bulk purchase requirements. Besides its core retail business, it also earns rental income by allowing vendors to operate within its stores.
By May 31, 2025, the company offered 38 product categories with around 10,000 SKUs. While its products are sold in multiple states, most sales come from Maharashtra and Gujarat.
The company’s strengths include strong knowledge of product assortment and inventory management supported by IT systems, a steady store expansion strategy, a dedicated logistics and distribution network with 18 company-owned trucks, a wide product portfolio, and strategically located manufacturing facilities.
Patel Retail IPO: Financial Performance
Patel Retail Ltd. key financials for different periods are as follows:
| Particulars (in ₹ Cr) | 31 Mar 2025 | 31 Mar 2024 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 820.69 | 814.19 | 1% |
| Profit After Tax (PAT) | 25.28 | 22.53 | 12% |
| EBITDA | 62.43 | 55.84 | 12% |
| Net Worth | 134.57 | 94.40 | 43% |
| Total Assets | 382.86 | 333.02 | 15% |
| Total Borrowing | 180.54 | 185.75 | -3% |
| RoE (%) | 19.02% | 24.24% | -5% |
| Debt Equity Ratio | 1.34 | 1.97 | -0.63 |
- Patel Retail Ltd. reported a 1% growth in operating revenue, increasing from ₹814.19 crores in FY24 to ₹820.69 crores in FY25, supported by steady sales across its retail network.
- Profit after tax rose by 12%, from ₹22.53 crores in FY24 to ₹25.28 crores in FY25, driven by operational efficiencies and improved margins from private label products.
- EBITDA increased by 12%, reaching ₹62.43 crores in FY25 compared to ₹55.84 crores in FY24, indicating stronger core profitability.
- Total assets expanded by 15% year-on-year, rising from ₹333.02 crores in FY24 to ₹382.86 crores in FY25, highlighting investments in store expansion and infrastructure.
- Total borrowings declined slightly by 3%, from ₹185.75 crores in FY24 to ₹180.54 crores in FY25, showing stable leverage levels.
- ROE dropped to 19.02% while the debt-equity ratio also fell to 1.34. Although the company reduced its reliance on debt but the return on shareholders’ equity had moderated.
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Patel Retail IPO Peer Comparison
Here is the comparison of Patel Retail Ltd. with its key peers:
| Company Name (FY25) | EPS (Basic ₹) | PE Ratio | RONW (%) |
|---|---|---|---|
| Patel Retail Limited | 10.3 | 25.1 | 19.02% |
| Vishal Mega Mart | 1.4 | 104.73 | 9.87% |
| Avenue Supermarts Limited | 41.61 | 102.33 | 12.64% |
| Osia Hyper Retail Limited | 1.46 | 8.73 | 4.97% |
| Sheetal Universal Limited | 8.12 | 15.58 | 21.44% |
| Kovilpatti Lakshmi Roller Flour Mills Limited | 1.27 | 101.61 | 1.72% |
| KN Agri Resources Limited | 14.76 | 17.01 | 10.50% |
| Madhusudhan Masala Limited | 10.93 | 12.92 | 16.04% |
- EPS: Patel Retail’s EPS is much higher than competitors such as Vishal Mega Mart (₹1.4) and Osia Hyper Retail (₹1.46). This indicates strong earnings per share.
- PE Ratio: The company’s PE is moderate and much lower than high-PE peers like Vishal Mega Mart (104.73) and Avenue Supermarts (102.33). This makes it relatively reasonably valued. It is slightly higher than low-PE peers such as Osia Hyper Retail (8.73), which shows investor optimism.
- RONW: Patel Retail has the second-best RONW in the industry, performing better than competitors such as Vishal Mega Mart at 9.87% and KN Agri Resources at 10.50%.
Patel Retail IPO Risk Factors
Patel Retail IPO GMP is ₹34 as of August 14, 2025 (at 15:32). It is expected to list at a 13.33% gain at a price of ₹289. However, GMP is not a safe or assured criterion to bid for an IPO. It is important to do your own analysis before investing in any IPO.
Patel Retail Ltd. is exposed to various risk factors that can eventually affect its business and investors’ perception:
- Geographic concentration: Most stores are in Thane and Raigad districts of Maharashtra, making the business vulnerable to local economic, regulatory, or competitive changes.
- Falling non-retail revenue: Non-retail sales dropped sharply between FY 2023 and FY 2025 due to factors like sugar export restrictions.
- Regulatory dependence: Operations require multiple licences, some pending or in the name of the former entity, risking delays or disruptions.
- High leverage: Although improving, the debt-to-equity ratio remains relatively high, exposing the company to interest rate and refinancing risks.
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Frequently Asked Questions – FAQs
1. What are the Patel Retail IPO dates?
Patel Retail IPO opens for subscription on August 19, 2025, and closes on August 21, 2025. The allotment is expected on August 22, 2025, and the tentative listing date is August 26, 2025 on both BSE and NSE.
2. What is the price band and lot size for the Patel Retail IPO?
The price band is ₹237 to ₹255 per share. The lot size is 58 shares, and retail investors can place a minimum bid of ₹14,790.
3. How will the IPO proceeds be utilised?
The net proceeds will be used for repayment or prepayment of certain borrowings, funding working capital requirements, and general corporate purposes.
4. Who are the promoters of Patel Retail Limited?
The company’s promoters are Dhanji Raghavji Patel, Bechar Raghavji Patel, Hiren Bechar Patel, and Rahul Dhanji Patel.
References:
https://www.sebi.gov.in/filings/public-issues/aug-2025/patel-retail-limited-rhp_95942.html https://www.investorgain.com/gmp/patel-retail-ipo-gmp/1376/
Author: All Content is verified by SMC Global Securities.
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