Patel Retail IPO Day 1: GMP, Subscription Status, and Expert Review
Patel Retail Ltd’s initial public offering (IPO) is open for public subscription from August 19 to August 21, 2025. The price band is fixed between Rs.237 to Rs.255 per equity share, with a face value of Rs.10. Ahead of its launch, the company raised Rs.43 crore from anchor investors, signaling strong institutional interest.
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Company Background
Founded in 2008, Patel Retail began its journey with a store in Ambernath, Maharashtra. Over the years, it expanded across Thane and Raigad suburbs, catering primarily to tier-III cities. Operating under the brand ‘Patel’s R Mart’, the company now manages 43 stores as of May 31, 2025, offering a wide product range from food and household items to apparel.
Financial Performance
The company reported operational revenue of Rs.820.69 crore in FY25, compared to Rs.814.19 crore in FY24. Net profit also rose to Rs.25.28 crore, up from Rs.22.53 crore in the previous year. These numbers highlight steady growth and profitability despite stiff competition in the retail segment.
Subscription Status Day 1
On day one, Patel Retail IPO subscription stood at 27%. The retail portion was subscribed 31%, non-institutional investors (NII) booked 33%, and the employee quota was subscribed 32%. The Qualified Institutional Buyers (QIBs) portion had not received bids yet. By 10:24 AM IST, the IPO had received 21,18,914 bids against 78,15,612 shares on offer, according to BSE data.
Brokerage Review
According to Choice Equity Broking, Patel Retail’s valuation appears attractive. At the upper price band, the stock is valued at a P/E of 33.7, lower than its listed peers. With a price-to-book ratio of 2.4 and EV/Sales ratio of 1.0, analysts see a discount compared to competitors. While its debt-to-equity ratio is higher than peers, the IPO funds will help reduce debt. Analysts recommend ‘Subscribe for Long Term’, citing strong operational efficiency and future capacity expansion.
IPO Structure and Allocation
The issue includes a fresh issue of 85.18 lakh shares along with an offer for sale of 10.02 lakh shares by promoters. Proceeds will be used for debt repayment, working capital, and general corporate purposes. Fedex Securities is the sole book-running lead manager, and Bigshare Services is the registrar.
Grey Market Premium (GMP)
On day one, the Patel Retail IPO GMP stood at Rs.38, suggesting that shares may list around Rs.293 per piece — nearly 14.9% above the issue price of Rs.255. Market trends over the past 11 sessions also indicate an upward momentum, raising expectations of a strong listing. Experts note that the GMP reflects investors’ willingness to pay above the issue price due to growth potential.
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