Maharashtra-based supermarket chain Patel Retail has filed preliminary papers with the capital markets regulator SEBI for fundraising through a maiden public issue.
The IPO is a mix of a fresh issue of 90.18 lakh equity shares by the company and an offer-for-sale (OFS) of 10.02 lakh shares by promoters Dhanji Raghavji Patel and Bechar Raghavji Patel.
Dhanji Patel will offload 7.68 lakh equity shares and Bechar Patel 2.34 lakh shares via OFS. The issue includes a reservation of up to 51,000 equity shares for company employees.
Prior to filing the red herring prospectus with the RoC, Patel Retail said it may consider fundraising through a private placement, preferential allotment, or rights issue of up to 5 lakh equity shares.
Incorporated in FY08, Patel Retail operates a retail supermarket chain in tier-III cities and nearby suburban areas, plans to spend Rs 60 crore out of the net fresh issue proceeds for repaying debts, Rs 115 crore for working capital requirements, and the remaining funds for general corporate purposes.
As of December 2023, the Patel family-owned company operates and manages 31 stores.
On the financials front, Patel Retail has reported a net profit of Rs 16.4 crore for the year ended March FY23, growing 44 percent over the previous year. Revenue from operations during the same period grew by 33 percent to Rs 1,018.5 crore.
For the six-month period ended September FY24, the net profit stood at Rs 9.8 crore on revenue of Rs 446 crore.
