Patel Retail IPO opens today: Analysts offer mixed views; should you apply?

Patel Retail IPO: Ahead of the issue, the company has allotted 1.7 million equity shares to various funds at ₹255 per share

Patel Retail IPO: The initial public offering (IPO) of retail supermarket chain Patel Retail opens for public subscription today, August 19, 2025. At the upper end of the price band of ₹237 to ₹255, the company aims to raise ₹242.76 crore. The mainline offering comprises a fresh issue of 8.5 million equity shares and an offer for sale (OFS) of 1 million equity shares. Dhanji Raghavji Patel and Bechar Raghavji Patel are the promoter selling shareholders.  

 

On Monday, August 18, the company raised ₹43 crore from the anchor investors. Chanakya Opportunities Fund, BNP Paribas Financial Markets, Maybank Securities, Beacon Stone Capital, and Pine Oak Global Fund were the institutions that participated in the anchor, according to an exchange filing. Patel Retail has allotted 1.7 million equity shares to various funds at ₹255 per share.

 

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Patel Retail IPO grey market premium (GMP)

The unlisted shares of Patel Retail were trading at ₹300 in the grey market, up ₹45 or 17.65 per cent from the upper end price, according to sources tracking unofficial market activities.  ALSO READ | Patel Retail IPO opens today: Key risks, strengths you must know

Patel Retail IPO: Should you apply or not?

Anand Rathi Research: Subscribe for long term

According to analysts at Anand Rathi Research, Patel Retail aims to strengthen its retail presence in Maharashtra by deepening market penetration and expanding its store network. Following a cluster-focused expansion strategy,  the company plans to enhance its presence in the western suburbs of the Mumbai Metropolitan Region (MMR), as well as

expand into the municipal region of Pune, Maharashtra.

 

"At the upper price band, the company is valued at a FY25 P/E of 33.6x, with a post-issue market capitalisation of ₹850.4 crore. Each retail store offers over 10,000 SKUs, and the company’s strategy focuses on providing a wide product range at value-for-money prices with strong customer service, sustaining competitiveness through everyday low prices driven by efficient procurement, supply, and operations," the brokerage said in a note. 

 

Based on the above factors, Anand Rathi assigned a 'Subscribe – Long Term' rating to the issue, adding that the IPO appears fully priced.

Arihant Capital: Neutral

In its IPO note, Arihant Capital said that in FY25, the company reported revenue of ₹1,520.4 crore and profit after tax (PAT) of ₹25.27 crore, reflecting its ability to scale profitably while maintaining operational efficiency. 

 

"With a strong regional footprint, customised product offerings, and robust supply chain capabilities, it is well-positioned to benefit from the rising penetration of organised retail and sustained consumer demand growth in India," the brokerage added.

 

At the upper price band of ₹255, the issue is valued at a P/E of 25.96x, based on FY25 annualised EPS of ₹9.8, and an EV/Ebitda of 14.54x. Arihant Capital has assigned a 'Neutral' rating for this issue.

Here are the key details of the Patel Retail IPO:

Patel Retail IPO is available at a price band of ₹237 to ₹255 per share, with a lot size of 58 shares. Accordingly, investors can bid for a minimum of one lot or 58 shares of Patel Retail and in multiples thereof.

 

The minimum amount required by a retail investor to bid for the IPO is ₹14,790 at the upper end price. A retail investor can bid for a maximum of 13 lots or 754 shares, amounting to ₹1,92,270.

 

The three-day subscription window to bid for the issue will conclude on Thursday, August 21, 2025. Following the closure of the subscription window, the basis of allotment of shares is likely to take place on Friday, August 22, 2025. Shares of Patel Retail are scheduled to make their D-street debut on Tuesday, August 26, by listing on the BSE and NSE.

 

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

 

According to the red herring prospectus (RHP), the company proposes to utilise the net fresh issue proceeds for repayment or prepayment of debt, funding working capital requirements and general corporate purposes.