Patel Retail IPO Subscribed 1.36 Times

Strong Interest from NII and Retail Investors on Day 1

New Delhi, August 19, 2025: Patel Retail has seen a strong start, with the issue being subscribed 1.36 times within the first two hours of opening on Day 1. A significant lead was taken by the Non-Institutional Investors (NII) and retail investors, whose portions were oversubscribed, reflecting a positive sentiment from these investor categories. The public offering is set to close on Thursday, August 21, 2025.

The IPO, which is a book-built issue worth ₹242.76 crore, has been structured with a price band of ₹237 to ₹255 per equity share. The funds from the fresh issue, which constitutes a major part of the IPO, are planned to be utilized for the repayment of outstanding borrowings, funding working capital requirements, and general corporate purposes. The issue also includes an offer for sale (OFS) component.

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The subscription status, as of the latest update, showed that the Non-Institutional Investors’ (NII) portion was subscribed 2.50 times, while the retail portion was oversubscribed with a 1.77 times subscription, indicating strong demand from individual investors. The portion reserved for Qualified Institutional Buyers (QIBs) has also received a strong response, with a 6.85 times subscription.

Furthermore, a healthy Grey Market Premium (GMP) is being commanded by the unlisted shares of Patel Retail, which is seen as a positive indicator for the potential listing. The GMP, which is currently at ₹45 per share, suggests that the stock could list at an estimated price of ₹300, representing a potential gain of approximately 17.65% over the upper price band. It is important to note that GMP is not an official indicator and is subject to market fluctuations.

Patel Retail, a supermarket chain, primarily operates in Tier-III cities and suburban areas of Maharashtra. The company’s business model is focused on value retailing, offering a wide range of products including food, FMCG, apparel, and its own private label goods. The company’s financial performance has been improving, with its revenue and profit after tax showing consistent growth in recent fiscal years. The IPO is being seen as a strategic step for the company to expand its operations and strengthen its financial position.