Patel Retail IPO

Company Overview: Incorporated in 2008, Patel Retail Limited is a supermarket chain catering primarily to tier-III cities and suburban areas. Operating under the brand name “Patel’s R Mart”, the company offers food, FMCG, general merchandise, and apparel.

The first store was launched in Ambernath, Maharashtra, and as of May 31, 2025, the company operates 43 stores across suburban Thane and Raigad districts, with a total retail area of approximately 1,78,946 sq. ft.

To strengthen margins and brand positioning, Patel Retail has introduced private labels such as:

• Patel Fresh – Pulses and ready-to-cook products

• Indian Chaska – Spices, ghee, and papad

• Blue Nation – Men’s wear

• Patel Essentials – Home improvement items

Manufacturing Facilities:

Patel Retail manages three key facilities supporting both retail and private-label operations:

• Facility 1 (Ambernath, Maharashtra): Processing, quality checks, and packaging of pulses, ready mixes, and grocery products.

• Facility 2 (Dudhai, Kutch, Gujarat): Agro-processing unit for peanuts, coriander seeds, and cumin seeds, enabling backward integration.

• Facility 3 (Agri-Processing Cluster, Dudhai, Kutch, Gujarat): Spread across 15.9 acres, equipped with five production units, fruit pulp processing, warehouse capacity of 3,040 MT, cold storage of 3,000 MT, and an in-house testing lab.

Facilities 2 and 3 together form the Kutch Facilities, supporting the company’s integrated supply chain and export operations.

Objects of the Issue:

1. Repayment/prepayment of certain borrowings – ₹59.00 Cr

2. Funding working capital requirements – ₹115.00 Cr

3. General corporate purposes

Strengths:

• Focused Expansion in Underserved Markets: Strong presence in tier-III cities and suburban areas with limited organized retail competition.

• Private Label Strategy: Multiple in-house brands support higher margins and brand recall.

• Integrated Supply Chain: Backward integration through agro-processing units and large agri-cluster facilities strengthens cost efficiency and product quality.

• Diversified Revenue Streams: Retail sales supplemented by exports and rental income from vendor partnerships.

Risks:

• Geographic Concentration: Heavy reliance on Maharashtra and Gujarat for retail sales creates regional dependency.

• Competitive Pressures: Faces intense competition from established national chains and regional retailers.

• Digital Gap: Limited online and omni-channel presence may restrict scalability in the evolving retail landscape.

• Operational Risks: Supply chain disruptions or facility downtime could affect availability and margins.

• Regulatory & Compliance Exposure: Non-compliance with food safety, retail, or export regulations may result in penalties or disruptions.

• Export Dependency: Exposure to international trade policies and currency fluctuations could impact export revenue.

Patel Retail IPO: Key Details

• IPO Dates: 19 to 21 Aug 2025

• Price Band: ₹237 – ₹255

• Lot Size: 58 Shares

• Total Issue Size: ₹242.76 Cr

• Fresh Issue: ₹217.21 Cr

• Offer for Sale: ₹25.55 Cr

• Retail Quota: 45%

• GMP: 15% (only for information)

Allotment Link

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