Patel Retail Ltd's Initial Public Offering (IPO) has garnered significant investor interest, achieving an impressive 19.48 times oversubscription on its second day of bidding. The Rs 242.76-crore public issue has attracted bids for 15.23 crore shares against the 78.16 lakh shares on offer.

Strong Demand Across Investor Categories

The IPO has seen robust demand across all investor categories:

• Non-institutional investors: 26.10 times oversubscribed
• Qualified institutional buyers: 17.16 times oversubscribed
• Retail investors: 16.55 times oversubscribed

IPO Details

Utilization of Proceeds

The company plans to use the IPO proceeds for:

1. Debt repayment
2. Working capital requirements
3. General corporate purposes

About Patel Retail

Patel Retail operates the supermarket chain 'Patel's R Mart', focusing on Tier-III cities across Thane and Raigad districts in Maharashtra. The company offers a wide range of products including:

• Food items
• Non-food items
• General merchandise
• Apparel

The strong response to Patel Retail's IPO reflects investor confidence in the company's business model and growth prospects in the retail sector, particularly in smaller cities and towns of Maharashtra.

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.