| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 237 to ₹ 255 | 58 | 19th Aug, 2025 –21st Aug, 2025 | ₹242.76 Cr |
Patel Retail Ltd
Patel Retail Ltd., incorporated in 2008, operates as a retail supermarket chain primarily in tier-III cities and nearby suburban areas, with a strong focus on “value retailing”, offering food, non-food (FMCG), general merchandise, and apparel, catering to the needs of the entire family. The first store under the brand “Patel’s R Mart” was started at Ambernath, Maharashtra, and since then, the company has expanded across suburban areas of Thane and Raigad districts in Maharashtra. As of May 31, 2025, Patel Retail manages 43 stores, with a retail business area of approximately 1,78,946 sq. ft. Additionally, the company operates two exclusive ready-made garment outlets under the brand “R Choice.” Apart from retail sales, the company also earns rental income from vendors through display and listing fees, and shop-in-shop arrangements such as vegetable, sandwich, chat, and ice cream stalls. Under the “Patel’s R Mart” brand, the company offers convenience by operating stores in residential areas and catering to both bulk buying and top-up purchases. Its value retail model primarily targets the expanding lower-middle class, middle class, and aspiring upper-middle-class population, based on customers’ socio-economic conditions, purchasing power, demographics, and evolving consumer trends. In the non-retail segment, the company has implemented backward integration to strengthen its supply chain. It processes peanuts and whole spices such as coriander and cumin seeds at its production facility. Moreover, Patel Retail has developed an agri-processing cluster comprising five production units to broaden its product offerings across the value chain. The company also exports products under the brands Patel Fresh & Indian Chaska, as well as under the brands of its customers, from its manufacturing facilities. During the disclosed financial period, it has exported to over 35 countries. Patel Retail’s focus on one-stop-shop convenience, competitive pricing, local market knowledge, and efficient supply chain management has helped it achieve growth and success.
Objective of the Patel Retail Ltd IPO
The company proposes to utilize the net proceeds from the offer towards funding of the following objects:
- Repayment/prepayment, in full or part, of certain borrowings availed by the company;
- Funding of working capital requirements of the company; and
- General corporate purposes.
Rationale To Patel Retail Ltd IPO
Enhancing efficiency and product assortment through IT-enabled inventory management
Patel Retail sells a diverse range of goods and merchandise, with each retail store offering over 10,000 SKUs across its product categories. The company leverages its deep knowledge of the clusters and regions in which it operates to customize the product assortment at each store, aligning with local demand and preferences while enhancing its offerings. This approach, supported by advanced IT systems, enables Patel Retail to quickly respond to changing customer needs. Its IT systems play a critical role in procurement, sales, and inventory management, enabling the company to identify and adjust product availability, brands carried, stock levels, and pricing in each store. These systems also help the company monitor and manage the performance of each store effectively. By focusing on inventory management based on customer preferences, Patel Retail has successfully launched a wide range of products under its brand across multiple categories. The company’s IT systems, built with business-specific data management tools, support key functions such as procurement, sales, and daily inventory control. In addition, it supports cash management, in-store systems, logistics systems, human resources, and other administrative functions. Its IT systems run on ERP applications and are robust and scalable. Together with strong supply chain management and effective internal controls to minimize product shortage and the occurrence of out-of-stock situations and pilferage, these systems enable Patel Retail to operate efficiently and productively with minimal disruption. This integration of IT and internal controls has also helped the company significantly reduce losses from pilferage.
Robust logistics and distribution network support cost-efficient and scalable growth
Patel Retail’s distribution and logistics network comprises a Distribution Centre at Ambernath, Maharashtra, which caters to its retail business. The company owns a fleet of 18 trucks, enabling cost and time-efficient transportation and delivery of products. For last-mile delivery, including doorstep delivery to customers, it also uses third-party transport service providers. The distribution and logistics system is well networked, allowing store requisitions within a short time period of generation and receipt of order. This has helped the company optimize in-store merchandise availability while reducing transportation costs. The Ambernath Distribution Centre forms the backbone of its supply chain, supporting the retail store network within a 60 km radius. This strong distribution framework enables the company minimize the need for dedicated storage space at every store, relying instead on periodic replenishment of depleted stock. Additionally, the adoption of an efficient racking system ensures optimal space utilization for display in stores, which contributes to lower working capital requirements and reduced carrying costs. Under its retail business, Patel Retail procures everyday-use products from reputed brands/manufacturers, making them available to end consumers through its supermarket network. Further, it also sells food and non-food items, including spices, pulses, ghee, papad, ready-to-cook instant mix, home-improving products, and apparel, through its private label brands such as Indian Chaska, Patel Fresh, Patel Essentials, and Blue Nation. The company markets and sells its manufactured and processed products both domestically and in over 35 export markets. Its customer base under the manufacturing division is divided into three categories, namely, institutional, wholesalers and retailers. Additionally, under its trading and export division, Patel Retail markets and sells products from reputed third-party brands/manufacturers, and also undertakes bulk exports.
Valuation of Patel Retail Ltd IPO
Patel Retail Ltd. operates as a retail supermarket chain in Maharashtra’s MMR region, specifically in the Thane and Raigad districts, with a focus on “value retail”, offering food, non-food (FMCG), general merchandise and apparel catering to the needs of the entire family. Over the year, India has evolved into a thriving consumer-driven economy, making it the 4th largest retail market globally and one of the most attractive markets for global retailer to expand their footprints in India. The share of organized retail in the total retail industry is currently estimated at 12-15% and is projected to grow from around $186 billion in 2024 to $267 billion by 2033. Patel Retail is strategically positioned to capitalize on this growth by leveraging advanced IT systems to optimize procurement, sales, and inventory, while customizing product assortments to local demand. Its robust technology and supply chain controls enhance efficiency, minimize stock-outs and reduce pilferage, thereby improving customer responsiveness and reducing losses. The company’s backward integration and strong logistics network help in reducing working capital requirements and improving operational efficiency. The company’s financial performance reflects strong growth, with EBITDA increasing at a CAGR of 16.7%, reaching Rs. 571 million in FY25 from Rs. 420 million in FY23, with consistent margins. Profit for FY25 stood at Rs. 253 million. The current issue is priced at a P/E of 24.8x on the upper band, which is lower than most of its peers. Patel Retail’s cost-efficient measures, consumer-centric approach, and growth strategy make it an attractive investment opportunity in India’s rapidly evolving retail landscape. Therefore, we recommend a “SUBSCRIBE” rating for the issue, with a medium- to long-term investment horizon.
What is the Patel Retail Ltd IPO?
The initial public offer (IPO) of Patel Retail Limited offers an early investment opportunity in Patel Retail Ltd . A stock market investor can buy Patel Retail Ltd IPO shares by applying in IPO before All Patel Retail Ltd shares get listed at the stock exchanges. An investor could invest in Patel Retail Ltd IPO for short term listing gain or a long term.
How to apply for the Patel Retail Ltd IPO through StoxBox?
To apply for the Patel Retail Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Patel Retail Ltd IPO open?
Patel Retail Ltd IPO is opening on 19th Aug 2025. Apply Now
What is the lot size of the Patel Retail Ltd IPO?
The Lot Size of Patel Retail Limited IPO is 58 equity shares. Login to your account now.
When is the Patel Retail Ltd allotment date?
The allotment Date for Patel Retail Ltd IPO is 22nd Aug 2025. Login to your account now.
When is the Patel Retail Ltd IPO listing date?
The listing Date for Patel Retail Ltd IPO is 26th Aug 2025. Login to your account now
What is the minimum investment required for the Patel Retail Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,790. Login to your account now
What is the maximum investment allowed for the Patel Retail Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 1,92,270. Login to your account now
What are the risks associated with investing in the Patel Retail Ltd IPO?
- All retail stores of the company are concentrated in the state of Maharashtra, particularly within the Thane and Raigad districts. Its revenue from operations for FY25 was almost 45% from retail sales. Any adverse developments affecting this region could materially impact its retail business, financial condition, results of operations, and cash flows.
- The company’s operations depend on the supply of large quantities of raw materials such as wheat, spices, and peanuts. It does not have long-term agreements with its suppliers, and any increase in costs or shortage in the availability of such raw materials could adversely affect its business and results of operations, and seasonal variations could also result in fluctuations in its results of operations.
- The company does not manufacture certain products in its own facilities and instead procures them from third parties, limiting its control over their manufacturing processes and quality standards. Any increase in costs by such third-party manufacturers could reduce profit margins and adversely impact its business, results of operations, financial condition, and cash flows.
When will the Patel Retail Ltd IPO shares be credited to my Demat account?
The Patel Retail Ltd IPO be credited to the account on allotment date which is 26th Aug 2025. Login to your account now
Where can I find the Patel Retail Limited IPO prospectus?
The prospectus of Patel Retail Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
