Patel Retail IPO Opens Tomorrow: Latest GMP Signals Over 10% Listing Gains, Check Key Details

Patel Retail Ltd. is scheduled to launch its initial public offering (IPO) to raise over Rs 200 crore from the primary market.

The retail supermarket chain has a presence in tier-III cities. Ahead of its opening, the grey market premium (GMP) indicated a potential listing gain of nearly 15% for the mainboard IPO. 

Investors who want to bid for shares in the Patel Retail IPO can check the following details before submitting their bids.

According to InvestorGain, the GMP for the Patel Retail IPO stood at Rs 36.5 as of 4:00 p.m. on Aug. 18. The latest GMP indicates a listing price of Rs 291.5 apiece at a premium of 14.31% over the upper limit of the price band. 

Note: GMP does not represent official data and is based on speculation.

The Patel Retail IPO is a book-building issue worth Rs 242.76 crore. The mainboard IPO comprises a fresh issue of 85 lakh shares, worth Rs 217.21 crore, and an offer-for-sale (OFS) portion of 10 lakh shares, amounting to Rs 25.55 crore.

Retail investors need to bid for a single lot size of 58 shares, requiring an investment of Rs 13,746. Small Non-Institutional Investors must bid for 14 lots, amounting to an investment of Rs 2,07,060. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 68 lots, aggregating to an investment of Rs 10,05,720.

The price band for the IPO has been fixed between Rs 237 and Rs 255 per share.

The subscription window for the IPO will remain open from Aug. 19 to Aug. 21. The allotment of shares is proposed to be finalised on Aug. 22. Patel Retail will transfer shares to the demat accounts of successful bidders on Aug. 25. The company will also initiate refunds to non-allottees on the same day.

Shares of the company are proposed to be listed on the BSE and NSE on Aug. 26.

Qualified Institutional Buyers (QIBs) will be allocated a maximum of 30% of the net offer. The company will set aside at least 45% of the net offer for retail investors and the remaining 25% will be reserved for Non-Institutional Investors (NIIs). 

Fedex Securities Pvt. is the book-running lead manager and Bigshare Services Pvt. is the registrar for the issue.

The company will use proceeds from the IPO to clear debt, fund working capital requirements and for general corporate purposes.

Patel Retail Ltd. is a retail supermarket chain with over 40 retail stores. The brands owned by the company include Indian Chaska, Patel Fresh and Patel Essential.

The company reported a 12.2% year-on-year (YoY) increase in profit after tax (PAT) to Rs 25.28 crore in FY25 from Rs 22.53 crore in FY24. Revenue from operations rose 0.8% YoY to Rs 820.69 crore in FY25 from Rs 814.19 crore in FY24. Total borrowings dropped 2.8% YoY to Rs 180.54 crore in FY25 from Rs 185.75 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.