Patel Retail raises Rs 15 crore in pre-IPO placement

Patel Retail raises Rs 15 crore in pre-IPO placement at Rs 300 per share. 

Patel Retail IPO | After the pre-IPO placement, the size of the fresh issue has been reduced by 5 lakh shares, to 85.18 lakh shares.

Supermarket chain Patel Retail raised Rs 15 crore from several investors in a pre-IPO placement last week. Usually, companies launch pre-IPO placement before filing the red herring prospectus with the Registrar of Companies.

Patel Retail allocated 5 lakh shares to 44 investors in the pre-IPO placement on November 27.

"Pursuant to the resolution of the board of directors and shareholders dated October 24 and November 23, respectively, the company has approved the pre-IPO placement of 5 lakh equity shares for cash at a price of Rs 300 per share, amounting to Rs 15 crore," said Patel Retail in a notice published in business newspapers.

Accordingly, the size of the fresh issue has been reduced by 5 lakh shares, to 85.18 lakh shares, from 90.18 lakh shares earlier.

The Maharashtra-based company had filed draft papers with the SEBI on March 29 this year to raise funds via an initial public offering. The IPO will be a mix of fresh issue of 85.18 lakh shares (revised size) and an offer-for-sale of 10.02 lakh shares by promoters Dhanji Raghavji Patel and Bechar Raghavji Patel.

At the allotment price of Rs 300 per share, the IPO size comes to Rs 285.60 crore.

Incorporated in fiscal 2008, Patel Retail plans to utilise Rs 60 crore out of the net fresh issue proceeds for repaying debt, Rs 115 crore for working capital requirements, and the remainder for general corporate purposes.

The company operates the retail supermarket chain in tier-III cities and nearby suburban areas (Thane and Raigad districts of Maharashtra), under the brand - Patel's R Mart. It was operating and managing 31 stores as of December 2023.