Patel Retail's IPO opened on August 19 at a price band of ₹237-255 and will be available for subscription until August 21. The company aims to raise ₹242.76 crore. The share is trading at ₹300 in the grey market. Anand Rathi Research has given this issue a 'Subscribe – Long Term' rating.
Patel Retail IPO: Retail supermarket chain Patel Retail's IPO opened for investors on Tuesday (August 19), with a price band fixed at ₹237-255. This issue will be available for subscription until August 21. The company plans to raise a total of ₹242.76 crore through the issuance of 85 lakh new shares and the sale of 10 lakh shares. Shares are trading at ₹300 in the grey market. Brokerage house Anand Rathi has described this issue as attractive for long-term investment.
What is the Price Band?
The company has fixed a price band of ₹237 to ₹255 per share for the IPO. This means investors can bid within this range to buy shares. If an investor takes a minimum of one lot, they will get 58 shares. According to this, the price of one lot comes to around ₹13,785.
Through this IPO, Patel Retail aims to raise a total of ₹242.76 crore. This includes a fresh issue of 85 lakh equity shares, and in addition, 10 lakh equity shares will be sold under the Offer For Sale (OFS). The company's promoters Dhanji Raghavji Patel and Bechar Raghavji Patel are associated with this IPO.
Entry of Anchor Investors
Even before the IPO opened, the company raised ₹43 crore from anchor investors on Monday, August 18. For this, the company allotted 17 lakh equity shares at ₹255 per share. Institutions like Chanakya Opportunities Fund, BNP Paribas Financial Markets, Maybank Securities, Beacon Stone Capital, and Pine Oak Global Fund have invested in anchor investor category.
Activity in the Grey Market
Patel Retail's IPO is showing considerable activity in the unofficial market i.e., the grey market. According to sources, non-listed shares were trading at up to ₹300. This is about ₹45 more than the company's upper price band of ₹255. According to this, the premium is about 17.65 percent.
Subscription Details
Investors can apply for a minimum of one lot i.e., 58 shares in this IPO. On the other hand, the maximum limit has been kept at 13 lots, which will have a total of 754 shares. In this way, retail investors have the opportunity to invest up to approximately ₹1.9 lakh.
Until When Will the IPO Remain Open?
Patel Retail's IPO will remain open for subscription until August 21. After this, the allotment of shares is likely to be finalized on August 22. At the same time, the company's shares are expected to be listed on the BSE and NSE on August 26.
Company's Business Model
Patel Retail is a retail supermarket chain that is operating in Maharashtra. The company is emphasizing a cluster-based expansion strategy. This means that the company is first strengthening its hold in the western areas of the Mumbai Metropolitan Region (MMR), and is now rapidly expanding into the Pune Municipal Corporation area as well.
More than 10,000 SKUs i.e., products are available for customers in the company's retail stores. This includes everyday essentials, grocery, household items and personal care categories. This is the reason why the company has rapidly increased its customer base.
