Patel Retail IPO: Price, Analysis, And GMP

Patel Retail IPO - Company Analysis

Patel Retail IPO, a Mainboard IPO, is a bookbuilding issue of Rs. 242.76 Cr (~95.2 lac Shares) by Patel Retail Ltd., which was incorporated in 2008. It is a retail supermarket chain focusing on Tier-III cities and their suburban surroundings. The supermarket provides a variety of products from food and fast-moving consumer goods (FMCG) to general merchandise and clothing.

Patel’s R Mart was the first store of the company, which was inaugurated in Ambernath, Maharashtra. As of 31st May, 2025, the company had a total of 43 stores in the suburban Thane and Raigad districts of Maharashtra, cumulatively adding up to 1,78,946 sq. ft. of retail area.

To increase the private label margins and to widen recognition, the company launched “Patel Fresh” (pulses and ready-to-cook items), “Indian Chaska” (spices, ghee, and papad), “Blue Nation” (men’s wear), and “Patel Essentials” (home improvement items).

It manages three main facilities supporting its retail and private label operations.

Facility 1 (Ambernath, Maharashtra): This location is engaged with the agro-processing of pulses, ready mixes, and some grocery items through private label brands, which are their own trademarks.

Facility 2 (Dudhai, Kutch, Gujarat): This unit manufactures agricultural products like peanuts, coriander seeds, and cumin seeds, which are a major part of the company’s backward integrative strategy.

Facility 3 (Agri-Processing Cluster, Dudhai, Kutch, Gujarat): Covering an area of 15.925 acres, this agricultural cluster consists of five production units, a cold storage facility with a capacity of 3,000 MT, a dry storage area with a 3,040 MT capacity, a fruit processing unit, and a testing laboratory for quality control and research.

 

Patel Retail IPO Details

The Patel IPO open date is from Aug 19 to Aug 21, with IPO allotment on Aug 22, refund initiation on Aug 25, 2025.

The Rs. 242.76 Cr mainline IPO comprises a combination of 0.85 crore shares (Rs. 217.21 Cr) and an offer for sale of 0.10 crore shares (Rs. 25.55 Cr).

The Patel Retail IPO listing date might be on Tuesday, 26 August 2025, and it will be listed at the BSE and NSE. The Patel Retail IPO price band is Rs. 237 to Rs. 255 for each Share. 

The price range specified by Patel Retail Ltd. is 15% lower than its pre-IPO round. The operator of the retail supermarket business raised Rs. 15 crore in the pre-IPO round in November 2024 from investors at Rs. 300 per share.

Events	Date
IPO Opening Date	Aug 19, 2025
IPO Closing Date	Aug 21, 2025
IPO Allotment Date	Aug 22, 2025
Refund Initiation	Aug 25, 2025
IPO Listing Date (Tentative)	Aug 26, 2025

 

 

Industry Outlook

With a 2025 valuation of USD 1,300 Bn, the Indian retail industry is predicted to grow at a 5.27% CAGR between CY 2024-33.

If you want to apply for the IPO, click to open a Demat Account.

Company Financial 

(Amount in Cr)

Period	31 Mar 2025	31 Mar 2024	31 Mar 2023
Total Assets	382.86	333.02	303.12
Total Revenue	825.99	817.71	1,019.80
PAT	25.28	22.53	16.38
EBITDA	62.43	55.84	43.24
Net Worth	134.57	94.40	71.87
Total Borrowing	180.54	185.75	182.81

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

Net Cash Flow In Multiple Activities	31 Mar 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	2,772.27	2,481.66	(556.18)
Net Cash Flow Investing Activities	(1,056.34)	(1,166.57)	(488.46)
Net Cash Flow Financing Activities	(839.85)	(1,283.24)	(3.98)

 

Revenue Bifurcation 

Income Source

 

Category-wise Revenue Breakdown

Region-wise Revenue Breakdown

Product-wise Revenue Breakdown

(Source RHP)

The Objective of The Issue

• Payback or prepayment in full or in part of some of the company's borrowed funds. ~Rs. 59 Cr.

• Meeting the company's working capital needs. ~Rs. 115 Cr.

• General corporate purposes.

Click to check the IPO application status.

Listed Peers of Patel Retail Ltd.

Company Name	Face Value (Rs. per Share)	EPS (Rs.)	P/E (x)
Vishal Mega Mart	10	1.40	104.73
Avenue Supermarts Limited	10	41.61	102.33
Spencers Retail Limited	5	-27.33	NA
Osia Hyper Retail Limited	1	1.46	8.73
Aditya Consumer Marketing Limited	10	-2.62	NA
Sheetal Universal Limited	10	8.12	15.58
Kovilpatti Lakshm Roller Flour Mills Limited	10	1.27	101.61
KN Agri Resources Limited	10	14.76	17.01
Madhusudhan Masala Limited	10	10.93	12.92

 

Valuation

Metric	Value
ROE	19.02%
ROCE	14.43%
Debt/Equity	1.34
PAT Margin	3.08%
EBITDA	7.61%
Price to Book Value	4.72
RoNW	19.02%

 

Evaluation of P/E Ratio

Considering the period of FY 2025, with an EPS of Rs. 10.30 from the last year, the resulting P/E ratio is 24.75x. When compared with the industry’s average P/E of 51.84x, it indicates an undervaluation (on a P/E ratio basis only). Hence, the price of the Share seems fairly priced for the investors.

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IPO's Strengths 

• Thorough familiarity with the best possible product selection and inventory control through the use of IT technologies.

• Consistent growth of the footprint through a unique approach to store acquisition and ownership.

• Network of logistics and distribution with an 18-truck fleet of its own.

• A varied range of products.

• Manufacturing facilities that are positioned strategically.

 

 

IPO’s Weaknesses

• The Gujarat region accounts for a significant amount of the company's income; any slowdown or disruption in the market there could have an immediate effect on sales.

• Since procurement depends on a small number of suppliers, inventory and sales may be impacted by any interruption in their supply chain.

• The company is subject to price wars from both organized and unorganized retail players, which can result in a compression of margins.

• Since many retail establishments use rented space, operations may be hampered by leases that are not renewed or by rising rental prices.

• If sales are below expectations following the holiday season, a high inventory holding puts pressure on cash flows.

 

Patel Retail IPO GMP 

Patel Retail IPO GMP today is Rs. 30 as of 13 Aug 2025, while writing this information. Hence, the Patel Retail IPO listing price (estimated) might be Rs. 285 (upper price + current GMP or grey market premium).

Patel Retail Limited IPO Summary

IPO Opening & Closing Date	Aug 19, 2025 to Aug 21, 2025
Face Value	Rs. 10 per Share
Issue Price	Rs. 237 to Rs. 255
Lot Size	58 Shares
Issue Size	95,20,000 Shares (Rs. 242.76 Cr)
Offer for Sale	10,02,000 Shares (Rs. 25.55 Cr)
Fresh Issue	84,67,000 Shares (Rs. 215.91 Cr)
Listing At	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd.

 

 

Patel Retail IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (58 Shares) amounting to Rs. 14790 and 13 Lots (754 Shares) amounting to Rs. 192270, respectively, while for S-HNI investors, the minimum Lot is 14 (812 Shares) amounting to Rs. 207060.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
SHNI (Minimum)	14 Lots
SHNI (Maximum)	67 Lots
BHNI (Minimum)	68 Lots

Patel Retail IPO Reservation

Institutional Share Portion	30%
Retail Investors' Share Portion	45%
Non-Institutional Shares Portion	25%

 

Patel Retail IPO Allotment Status

To check the Patel Retail IPO allotment status, visit the official Registrar’s website or the BSE website. Below are the website links for you.

Using Registrar’s Website - Bigshare IPO allotment status

Using BSE Website - ​BSE IPO allotment status

 

Promoters And Management of Patel Retail Ltd.

• Dhanji Raghavji Patel

• Bechar Raghavji Patel

• Hiren Bechar Patel

• Rahul Dhanji Patel

Pre-Issue Promoter Shareholding	97.99%
Post-Issue Promoter Shareholding	70.01%

 

Patel Retail IPO Lead Managers

• Fedex Securities Pvt Ltd.

 

 

Dividend Policy

The company has paid an interim and final dividend of Rs. 1 per Share for FY23.

Conclusion

With the help of strategic manufacturing facilities and private label margins, Patel Retail IPO provides investors with a combination of retail development and backward integration benefits. Although supplier concentration and regional dependency present hazards, the issue looks reasonably valued with a P/E below the industry average.  It has an option for the long-term expansion of the retail sector due to its strong brand presence in Tier-III cities and operational effectiveness.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.