Patel Retail Ltd., a retail supermarket chain operating in tier-III cities, launched its Initial Public Offering (IPO) with a modest start, achieving a 14% subscription rate on the first day of bidding. The company, known for its brands Indian Chaska, Patel Fresh, and Patel Essential, is looking to raise Rs 242.76 crore through this public issue.

IPO Details

• Price Band: Rs 237-255 per share
• Issue Size: 95 lakh shares
  • Fresh Issue: 85 lakh shares (Rs 217.21 crore)
  • Offer for Sale: 10 lakh shares (Rs 25.55 crore)
• Subscription Closes: August 21
• Allotment Date: August 22
• Listing Date: August 26 (on BSE and NSE)

Subscription Breakdown

On the first day of bidding, the IPO received varying levels of interest across different investor categories:

About Patel Retail Ltd.

Patel Retail Ltd. operates over 40 stores in tier-III cities under its three brands: Indian Chaska, Patel Fresh, and Patel Essential. The company's expansion into the public market comes as it seeks to strengthen its position in the retail sector.

Use of Proceeds

The funds raised through this IPO will be allocated for:

• Clearing existing debt
• Meeting working capital requirements
• General corporate purposes

Market Sentiment

The grey market premium for Patel Retail shares stands at Rs 45, indicating a potential listing price of around Rs 300 per share. However, it's important to note that grey market premiums are unofficial and subject to change.

Investors and market watchers will be keenly observing the subscription trends over the next few days as the IPO progresses towards its closing date on August 21. The performance of this IPO could provide insights into investor appetite for retail sector stocks, particularly those focusing on tier-III cities in India.

Patel Retail Ltd, a supermarket chain operator, has successfully raised Rs 43.46 crore from anchor investors ahead of its Initial Public Offering (IPO). The company allotted 17.04 lakh equity shares at Rs 255 per share to a diverse group of institutional investors.

Anchor Investors

The anchor book saw participation from several notable investors, including:

• Chanakya Opportunities Fund
• BNP Paribas Financial Markets
• Maybank Securities
• Beacon Stone Capital
• Saint Capital Fund
• Pine Oak Global Fund

IPO Details

The IPO is scheduled to open for public subscription from August 19 to August 21. The offer comprises two components:

1. A fresh issue of 85.18 lakh shares
2. An offer for sale of 10.02 lakh shares by promoters

The price band for the IPO has been set at Rs 237-255 per share. At the upper end of the price band, the public issue is expected to raise Rs 242.76 crore.

Use of Proceeds

The company plans to utilize the funds raised from the IPO for:

• Debt repayment
• Working capital requirements
• General corporate purposes

About Patel Retail

Patel Retail operates 43 stores under the 'Patel's R Mart' brand. The company's focus is on tier-III cities and suburban areas, particularly in the Thane and Raigad districts of Maharashtra.

Financial Performance

Patel Retail reported the following financial results:

Table: Patel Retail Ltd Financial Performance

All figures in Rs crore

The company has shown a modest increase in both revenue and profit compared to the previous fiscal year.

Listing Date

The shares of Patel Retail Ltd are scheduled to begin trading on August 26.

Outlook

Investors and market watchers will be closely monitoring this IPO, as it represents an opportunity to invest in a growing retail chain focused on tier-III cities and suburban areas in Maharashtra. The company's recent financial performance and strategic focus on underserved markets may make it an attractive option for those looking to diversify their portfolio in the retail sector.