05-Apr-2024
2 mins read
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Patel Retail IPO is offering a 100% book-built public issue. This upcoming IPO is offering a fresh issue of upto 90.18 Lakhs equity shares and an offer for sales of upto 10.02 Lakhs of equity shares. The face value is reported as Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer is reserved for Qualified Institutional Investors, not less than 15% reserved for Non-Institutional Investors and the remaining 35% or more reserved for Retail Individuals. Application for public issue and subscription opening/closing dates and other important dates will be announced soon, however keep in mind the public offering is proposed to be listed on the NSE and BSE exchange.
About the Company
The company primarily engaged as a retail supermarket chain operating in tier-III cities and nearby suburban areas, with focus on “value retail”, offering food, non-food (FMCG), general merchandise and apparel catering to the needs of the entire family. Incorporated in Fiscal 2008, the Company started its first store under the brand “Patel’s R Mart” at Ambernath, Maharashtra and since, our operations are spread across the suburban area of Thane and Raigad district in Maharashtra. Over the years they have emerged as a player managing one of the largest network stores in the MMR region (source: D&B Report). As on December 31, 2023 the company operate and manage thirty-one (31) stores, with a Retail Business Area28 of approx. 1,26,000 sq.fts.
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Objectives of the Public Offering
The company proposes to utilize the Net Proceeds from the Offer towards Repayment/prepayment, in full or part, of certain borrowings availed of by our Company, funding of working capital requirements of the Company and in other general corporate purposes - The amount to be utilized for general corporate purposes shall not exceed 25% of the Gross Proceeds.
Financials of the Company (Amt in Lakhs)
The company reported net revenue of Rs 446.81 Crore, assets worth Rs 303.12 Crore, and profit after tax reported as Rs 16.37 Crore for the FY 22-23. It is clear that the PAT is increased by 44.05% and revenue rose by 32.12%.
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 28,045.49 | 30,311.99 | 27,386.63 | 24,668.95 |
| Revenue | 44,681.97 | 1,01,980.36 | 77,183.58 | 82,775.34 |
| Profit After Tax | 977.98 | 1,637.97 | 1,137.03 | 1,149.74 |
| Net Worth | 8,165.25 | 7186.92 | 5584.24 | 4450.03 |
| Reserves and Surplus | 7,784.26 | 6,805.94 | 5,203.26 | 4,069.05 |
| Total Borrowing | 16339.35 | 18281.39 | 17090.45 | 17636.99 |
Key Performance Indices of Patel Retail Limited
Key performance indicators of the company reported a Return on Capital Employed as 12.66%, a Return on Net Worth of 22.79%, a Profit after-tax margin of 1.61% and Return on Equity as 23.66% for the year ended March 2023. If we look at the EBITDA margin, it is reported as 4.25% for the same FY.
Lead Manager, Registrar & Promoters of Public Offering
The IPO is managed by Fedex Securities Private Limited, which are the book-running lead managers. Bigshare Services Private Limited has been appointed as the registrar for the issue and the promoters of the Patel Retail Limited Dhanji Raghavji Patel and Bechar Raghavji Patel.
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