RSB Retail files for ₹500 crore IPO to boost expansion and repay debt

RSB Retail India, a Hyderabad-based multi-format apparel retailer with 73 stores across Telangana, Andhra Pradesh, and Karnataka, has filed its draft red herring prospectus (DRHP) with Sebi for an initial public offering (IPO).  The proposed IPO comprises a fresh issue of equity shares worth up to Rs 500 crore and an offer for sale of up to 29.8 million shares by existing shareholders.    Founded in 2008, RSB Retail offers ethnic, casual, and formal wear through five key formats, including South India Shopping Mall and Value Zone Hyper Mart.  The company plans to utilise Rs 275 crore from the fresh issue to repay loans, Rs 118 crore for new store openings under R.S. Brothers and South India Shopping Mall, with the remainder directed towards general corporate purposes.  Selling shareholders in the offer for sale (OFS) include Potti Venkateswarlu, Seerna Rajamouli, Tiruveedhula Prasada Rao, and others.  In FY25, RSB Retail reported Rs 2,694 crore in revenue and Rs 104.4 crore in profit, achieving a CAGR of 12.55 per cent in revenue since FY23.  According to Technopak, South India’s apparel market constituted 28 per cent of India’s total apparel market in FY24, valued at Rs 1.72 trillion and projected to grow to Rs 3 trillion by FY29 at a CAGR of 12 per cent.  Motilal Oswal Investment Advisors, HDFC Bank, and IIFL Capital Services are acting as book-running lead managers for the IPO.