Patel Retail is a reputable company that has been operating in the retail sector, supplying consumers with a variety of products. IPOs are quite important in the stock market as they provide the companies with the opportunity to raise funds and the investors with a piece of their expansion. The present blog intends to disseminate the latest information about the Patel Retail IPO with details such as the grey market premium (GMP), IPO date, price band, expert review, and sectoral analysis. Find out more about this IPO opportunity that will be available soon.
What is the Patel Retail IPO?
The process where a private company sells its stocks in the open market for the first time to raise money from investors is called an Initial Public Offering (IPO).
Patel Retail, established in 1995, is a leading name in the Indian retail sector, running a chain of grocery and FMCG stores in several states. The company concentrates on providing low-priced products to the rural and semi-urban customers, which has been the main source of the company’s strong revenue growth.
Patel Retail is coming out with a public offer of shares to raise money for enlarging the store network, investing in technology, debt redemption, and increasing the strength of the working capital. This IPO marks a major step in Patel Retail’s plans for sustainable business growth and market consolidation.
Patel Retail IPO Details
Here are the main highlights of the Patel Retail IPO that give basic knowledge to the possible investors regarding the offering’s timeline, pricing, and size:
Particulars | Description |
Opening date | 19 August 2025 |
Closing date | 21 August 2025 |
Listing date | 26 August 2025 |
Total issue size | ₹ 242.76 Crores |
Price range | ₹237 – ₹255 |
Lot size | 58 |
Objective of the IPO
A brief overview of the Patel Retail IPO’s primary goals and the estimated usage of the funds allocated for each objective, as well as the amounts already released from the pre-IPO placement, is depicted below:
Purpose | Estimated Allocation (₹ in Lakhs) | Amount Already Used from Pre-IPO Placement (₹ in Lakhs) |
Early settlement of borrowings | 5,900.00 | Nil |
Meeting the working capital requirements of the company | 11,500.00 | 599.98 |
General corporate needs | Not Disclosed | 319.63 |
Financial performance overview
Here is a summary of Patel Retail’s financial performance over the last three fiscal years.
Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
Equity Share Capital | 2,488.25 | 2,438.25 | 380.98 |
Net Worth | 13,457.44 | 9,440.33 | 7,186.92 |
Revenue from Operations | 82,069.29 | 81,418.83 | 1,01,854.78 |
Restated Profit / (Loss) After Tax | 2,527.81 | 2,253.34 | 1,637.97 |
Basic & Diluted per Equity Share | 10.30 | 9.24 | 6.72 |
NAV | 54.08 | 38.72 | 29.48 |
Grey Market Premium (GMP) of Patel Retail IPO
Grey Market Premium (GMP) is defined as the extra amount to which investors are ready to pay above the anticipated price band of an IPO before the allocation of shares and the listing on the stock exchange take place. It is a non-official market indicator showing the demand and feeling for the IPO shares. A high GMP denotes that there is a strong investor’s interest and a potential for the listing day to have a good run, while a low or negative GMP indicates a weak demand. But it should be noted that, as the grey market is not regulated, GMP figures can be impacted due to manipulation and should be treated with care.
The Patel Retail IPO GMP is ₹49 per share above the price band as of 20th August 2025, which means that a robust GMP is signed. This strong GMP can be a signal of a good investor’s idea and positive market reaction to the Patel Retail’s IPO, indicating the confidence of the company and the expectations of listing returns.
For investors seeking advanced analysis and real-time updates on IPOs like Patel Retail, financial services can offer valuable tools and data to make informed decisions.
Sectoral Analysis of Patel Retail IPO
India’s retail sector in 2025 is witnessing robust growth, powered by rising consumer spending, urbanisation, and the rapid growth of organised retail formats. The industry gets the advantage of government policies, increased adoption of digital payment systems, and a distinct change towards convenience and value-based shopping. Changing consumer preferences have led the sector to attract competition from existing as well as new retail formats.
In this dynamic environment, Patel Retail positioned itself as a value-driven supermarket chain with a stronghold in suburban and price-sensitive markets. Its multi-channel business model, comprising retail, wholesale, exports, and e-commerce, enables Patel Retail to serve the diverse consumer needs and invest in the unfolding sectoral opportunities.
Peer Comparison
Financial and accounting ratios comparison of Patel Retail versus industry peers in the same sector is presented here.
Companies | CMP | EPS (Basic in ₹) | EPS (Diluted in ₹) | PE Ratio | RONW (%) | NAV (Per Share) | Face Value |
Patel Retail Limited |
|
10.30 | 10.30 |
|
19.02% | 54.08 | 10.00 |
Vishal Mega Mart | 146.62 | 1.40 | 1.36 | 104.73 | 9.87% | 13.92 | 10 |
Avenue Supermarts Limited | 4,257.80 | 41.61 | 41.50 | 102.33 | 12.64% | 329.27 | 10.00 |
Spencers Retail Limited | 57.20 | -27.33 | -27.37 |
|
-37.24% | -73.40 | 5.00 |
Osia Hyper Retail Limited | 12.75 | 1.46 | 1.46 | 8.73 | 4.97% | 23.85 | 1.00 |
Aditya Consumer Marketing Limited | 42.71 | -2.62 | -2.62 |
|
-18.51% | 14.14 | 10.00 |
Sheetal Universal Limited | 126.50 | 8.12 | 8.12 | 15.58 | 21.44% | 38.27 | 10.00 |
Kovilpatti Lakshmi Roller Flour Mills Limited | 129.05 | 1.27 | 1.27 | 101.61 | 1.72% | 73.92 | 10.00 |
KN Agri Resources Limited | 251.00 | 14.76 | 14.76 | 17.01 | 10.50% | 140.60 | 10.00 |
Madhusudhan Masala Limited | 141.20 | 10.93 | 10.93 | 12.92 | 16.04% | 64.73 | 10.00 |
Strengths and Risks
Here are some key strengths and risks associated with Patel Retail to consider:
Strengths
- A strong foothold in the suburban and low-cost markets targeted by the company, thus attracting a broad base of value-seeking customers.
- A business model that is not limited to one channel but comprises retail stores, wholesale, export, and e-commerce, hence the company has multiple sources of income.
- Concentration on the cost-effectiveness and supply chain management, thus allowing the company to offer competitive prices and maintain the profitability of the business.
- Established brand recognition and experience in the Indian retail sector, supporting customer loyalty.
Risks
- Intense competition from organised and unorganised retail players is putting pressure on pricing and margins.
- The clientele is primarily made up of people with low income, and therefore, the company is indirectly susceptible to the economic downturn and habit changes in their consumers.
- The risks of the company’s growth strategy are closely tied to the problems that might arise with rising expenses and regulations.
- Changes in the price of raw materials and supply chain interruptions can lead to cost increases and a decline in profitability.
Conclusion
The Patel Retail IPO can be a chance to put your money into a thriving company that has good prospects in the Indian retail sector. Grey market premium and business model can be an indicator of bullish market sentiment. However, investors should be cautious about potential rivals and the company’s operational challenges. Only after a thorough analysis of the company’s strengths as well as risks should the investors decide to be part of this issue.
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