Supermarket Chain Patel Retail Limited raised Rs 15 cr in Pre- IPO round

 Supermarket Chain Patel Retail Limited, operating in tier-III cities and nearby suburban areas under the brand “Patel’s R Mart” has raised Rs 15 crore from individual investors.

As per a public announcement made by the company dated November 28, 2024, the company, in consultation with the lead banker, had issued 5,00,000 equity shares to individual investors at an issue price of Rs 300 per equity share aggregating to Rs 15 crore.

 

Accordingly, the size of the fresh issue has been reduced by 5,00,000 equity shares and the revised fresh issue stands at 85,18,000 equity shares.

 

According to the DRHP filed in April 2024, the public issue with a face value of Rs 10 per equity share, is a mix of fresh issue of shares of up to 90.18 lakh and an offer for sale up to 7.68 lakh by Dhanji Raghavji Patel and up to 2.34 lakh equity shares by Bechar Raghavji Patel.

 

The proceeds from its fresh issuance to the extent of Rs 60 crore will be utilized for repayment/prepayment, in full or part, of certain borrowings availed of by the Company, Rs 115 crore for funding of working capital requirements of the Company, and general corporate purposes.

 

Patel Retail was established in Fiscal 2008, launching its inaugural store in Ambernath, Maharashtra. Since then, it has expanded its operations throughout the suburban regions of Thane and the Raigad district in Maharashtra. The company provides a diverse range of products including food, non-food items (FMCG), general merchandise, and apparel to meet the needs of families.

 

Over time, Patel Retail has grown into a significant player in the value retail sector, managing one of the largest networks of stores in the Mumbai Metropolitan Region (MMR), as indicated by a D&B Report cited in the DRHP. As of December 31, 2023, the company operated and managed thirty-one (31) stores, with a total Retail Business Area of approximately 1,26,000 square feet.

 

To enhance its margins and promote its brand "Patel’s R Mart," the company introduced private label products such as Pulses ("Patel Fresh"), spices ("Indian Chaska"), menswear ("Blue Nation"), home improvement products ("Patel Essentials"), ready-to-cook/instant mixes ("Patel Fresh"), ghee, and papad ("Indian Chaska"). These products are sourced in bulk, undergo quality checks and inspections at the processing and packing facility in Ambernath, Maharashtra ("Facility 1"), and are then packaged and branded.

 

Patel Retail’s restated revenue from operations during the fiscal year 2023 increased 32.94% to Rs 1,018.55 crore from Rs 766.16 crore in the previous year, primarily due to an increase in domestic and export sales. Profit after tax grew 44.06% from Rs 11.37 crore for the financial year 2022 to Rs 16.38 crore for the financial year 2023.

 

For the six months ended September 30, 2023, revenue from operations stood at Rs 445.98 crore, and profit after tax stood at Rs 9.78 crore.

 

Fedex Securities Private Limited is the sole book-running lead manager, and Bigshare Services Private Limited is the registrar of the issue.