Patel Retail IPO Sees 6.40 Times Subscription on Day 1

The Patel Retail IPO has received a strong response from investors, with a subscription of 6.40x by the end of Day 1. The company is offering shares at a price of Rs. 255 per share, with a minimum lot size of 58 shares. The issue size stands at Rs. 242.76 crore, comprising the offer for sale and fresh issue. Stay tuned for the latest updates on the Patel Retail IPO subscription status as the offering progresses.

Patel Retail IPO Subscription Status - Day 1

The Patel Retail IPO was subscribed 6.40 times overall by the end of Day 1, with Retail Investors at 4.96 times, Non-Institutional Investors (NIIs) with a demand at 7.40 times, and Qualified Institutional Buyers (QIBs) at 9.86 times.

Last updated: 05:04 PM, Tuesday, 19 Aug 2025

Company Overview of the Patel Retail IPO

Patel Retail Limited is a retail supermarket chain that focuses on "value retail" by offering food, non-food (FMCG), general merchandise, and apparel to families in tier-III cities and suburban areas, primarily in the Thane and Raigad districts of Maharashtra. The company began with a single store in fiscal year 2008 and has since grown to operate 43 stores as of May 31, 2025, with a total retail area of approximately 178,946 sq. ft.

In addition to its retail business, Patel Retail has diversified its operations through backward integration into manufacturing, processing, and trading. The company operates a processing and packing facility (Facility 1) in Ambernath, Maharashtra, and an agri-processing cluster (Facility 3) with five production units and a fruit pulp processing unit in Kutch, Gujarat. These facilities allow the company to produce and package its private-label brands such as "Patel Fresh" and "Indian Chaska". The company also trades a variety of products, including bulk agricultural commodities like sugar, rice, and pulses, for both domestic and international markets.

The company's retail sales contributed Rs 368.86 crore to its revenue from operations in Fiscal 2025, representing 44.95% of the total revenue. The company's processing sales accounted for Rs 361.17 crore (44.01% of revenue), and its trading activities brought in Rs 83.17 crore (10.13% of revenue) in the same fiscal year.

Strengths and Risks of Patel Retail IPO

Let’s dive into the strengths and risks to assess if the Patel Retail IPO is good or bad for investors

Strengths: 

• Diverse Business Model: Patel Retail operates across three main business verticals, which are retail, manufacturing or processing, and trading. This diversification allows the company to cater to a broad range of customers and potentially mitigate risks associated with a single market segment.

• Strong Retail Presence: The company has steadily expanded its retail network, growing from 30 stores in Fiscal 2023 to 43 as of May 31, 2025. This growth is supported by a cluster-based approach that enhances brand visibility and operational efficiency in its target regions.

• Backward Integration: By establishing its own processing facilities, the company has gained greater control over its supply chain and product quality. This strategy has enabled it to develop private label brands like "Patel Fresh" and "Indian Chaska", which contributed significantly to its retail sales.

• Robust Financial Performance: Despite fluctuations in revenue, the company has demonstrated a strong track record of profitability. Its EBITDA grew at a CAGR of 20.16% from Rs 43.23 crore in fiscal 2023 to Rs 62.43 crore in fiscal 2025, while its net profit after tax increased at a CAGR of 24.23% over the same period.

• Experienced Management: The company benefits from a management team with extensive experience in the retail and food processing sectors. Its promoters and key management personnel are credited with driving the company's growth and operational strategies.

Risks:

• Geographic Concentration: All of the company’s retail stores are concentrated in Maharashtra, specifically in the Thane and Raigad districts. This concentration makes the business vulnerable to local economic downturns, changes in state policies, natural disasters, and intense competition within these regions.

• Dependence on Non-Retail Business: While retail sales are growing, the company experienced a significant reduction in non-retail revenue, which decreased from Rs 741.63 crore in fiscal 2023 to Rs 444.34 crore in fiscal 2025. This decline was largely due to government restrictions on the export of sugar, which heavily impacted the company’s trading vertical.

• Regulatory and Compliance Risks: The company has faced delays in submitting regulatory filings with the Registrar of Companies and requires certain licences and approvals to be transferred to its new name. A delay or failure to obtain or renew these permits on time could adversely affect its operations. Additionally, some of its trademarks and copyrights are pending registration or have been opposed by other entities, which could harm its brand reputation.

• High Debt-to-Equity Ratio: The company has a high debt-to-equity ratio, which was 1.34 in Fiscal 2025. Its ability to service this debt is contingent on its continued profitability, and any inability to generate sufficient cash flow could adversely affect its financial stability.

• Reliance on Unsecured Borrowings: The company has availed unsecured loans from its promoters and directors, which may be recalled at any time. The outstanding balance of these loans was Rs 14.52 crore as of March 31, 2025. The company’s inability to repay these loans on time could adversely affect its business operations.

Patel Retail IPO Details

• IPO Date: August 19, 2025 to August 21, 2025

• Issue Price: Rs. 255 per share (Higher Band)

• Lot Size: 58 shares

• Total Issue Size: 95,20,000 shares (aggregating up to Rs. 242.76 crore)

• Tentative Allotment Date: August 22, 2025

• Tentative Listing Date: August 26, 2025

How to Apply for Patel Retail IPO

• Visit the Rupeezy app or Rupeezy DOCK.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter your UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per lot size. 

• Submit to complete the order.