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Patel Retail IPO
Patel Retail Ltd
₹13,746 /58 sharesMinimum Investment
Patel Retail IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| BSE | ₹255.00 | ₹300.00 | ₹45.00 (17.65%) |
Patel Retail IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 19 Aug ‘25 - 21 Aug ‘25 | ₹13,746 | 58 | ₹237 - ₹255 |
| Issue Size | IPO Doc |
|---|---|
| 242.76Cr | RHP PDF |
Subscription rate
As of 21 Aug'25, 04:01 PM
| Qualified Institutional Buyers | 217.13x |
| Non-Institutional Investor | 106.30x |
| Retail Individual Investor | 39.82x |
| Employees | 23.68x |
| Total | 85.63x |
About Patel Retail
Founded in
2007
Managing director
Mr. Dhanji Raghavji Patel
Parent organisation
Patel Retail Ltd
Patel Retail Ltd IPO
https://www.youtube.com/watch?v=lzJYbaCAO2s
Strengths & Financials of Patel Retail
Strengths
Risks
Patel Retail claims to have a strong understanding of product assortment and inventory management, aided by advanced information technology (IT) systems. The company customises its product offerings based on local demand and consumer preferences across its stores. The company states that this approach has enabled it to respond quickly to shifts in customer tastes, contributing to the successful launch of private label products and achieving a significant portion of revenue from its own brands.
Patel Retail claims to have grown steadily through a strategic store acquisition and ownership model. The company focuses on expanding within existing regions by opening new stores in proximity to its current locations, thereby forming clusters. It states that this approach enhances operational efficiency, strengthens local market penetration, and boosts brand visibility while achieving economies of scale in supply chain and inventory management.
Patel Retail claims to have a robust logistics and distribution network focused on its distribution centre in Ambernath, Maharashtra. With a fleet of 18 trucks and third-party services for last-mile delivery, the company ensures timely product replenishment and efficient transportation. This well-coordinated network has allowed Patel Retail to optimise in-store availability, minimise transportation costs, and reduce storage needs at individual stores.
Patel Retail claims to have strategically located manufacturing facilities that contribute to operational efficiency. The company’s processing and packaging facility in Ambernath, Maharashtra, and its multi-product manufacturing units in Gujarat help reduce transportation costs and enhance supply chain effectiveness. The proximity of these facilities to agricultural belts enables Patel Retail to efficiently source raw materials, maintain control over product quality, and achieve economies of scale, contributing to cost savings and timely product delivery.
Patel Retail claims to have a large procurement network of over 1,500 farmers, allowing the company to secure high-quality agricultural products at competitive prices. This, coupled with strong relationships with suppliers and vendors, enables the company to negotiate better terms. The company also claims to have significant storage capacities, with its agri-cluster having a dry storage capacity of 3,040 metric tonnes (MT) and cold storage of 3,000 MT.
Patel Retail claims to have established long-standing relationships with over 500 wholesalers and retailers, built on a deep understanding of the Indian consumer palate and a reputation for quality and competitive pricing. The company’s in-house sales and marketing team, along with regular engagement with customers, has contributed to maintaining these relationships and securing a competitive edge in the market.
The company has received a credit rating of Acuite BBB for its long-term bank facilities and Acuite A3+ for pre/post shipment credit.
The company has reported a consistent increase in profit after tax (PAT). It increased from Rs 16.38 crore in FY23 to Rs 22.53 crore in FY24 and Rs 25.28 crore in FY25.
Patel Retail’s retail stores are primarily concentrated in the Thane and Raigad districts of Maharashtra. Revenue from these stores accounted for Rs 368.87 crore (44.95 percent) of the company’s total revenue in FY25, Rs 289.72 crore (35.58 percent) in FY24, and Rs 266.56 crore (26.17 percent) in FY23. Any adverse developments in these regions, such as changes in state policies, economic downturns, or natural disasters, could significantly impact the company’s operations, sales, and financial condition.
Patel Retail has experienced a significant reduction in revenue from its non-retail business, with a decline from Rs 741.63 crore in FY23 to Rs 444.35 crore in FY25. This reduction was primarily due to a drop in export sales, particularly in bulk sugar exports, which fell from Rs 308.81 crore in FY23 to nil in FY25 following government restrictions. Going forward, it would be pertinent to see how the company intends to make up for such a loss of business.
Patel Retail has a high debt-to-equity ratio, which stood at 1.34, 1.97, and 2.54 for FY25, FY24, and FY23, respectively, primarily due to its reliance on borrowings from both working capital limits and term loans, as well as unsecured borrowings from its promoters. Any further increase in borrowings could materially affect the company’s financial health. Furthermore, the company’s reliance on debt financing, especially in a fluctuating market, increases its exposure to funding risks, and in the absence of favourable market conditions, it may struggle to meet financial requirements, impacting operations and profitability.
The top 10 suppliers accounted for Rs 126.19 crore (15.38 percent) of the company’s revenue in FY25, Rs 164.80 crore (20.24 percent) in FY24, and Rs 249.49 crore (24.49 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.
The company reported negative cash flow from operating activities amounting to Rs 5.56 crore in FY23. The main reason for this was an increase in inventory, driven by increased sales of processed products, and an increase in trade receivables, largely due to the development of its domestic distribution channel. Additionally, negative cash flow from investing activities amounted to Rs 10.56 crore in FY25, Rs 11.66 crore in FY24, and Rs 4.88 crore in FY23. The company also reported negative cash flow from financing activities amounting to Rs 8.40 crore in FY25, Rs 12.83 crore in FY24, and Rs 0.04 crore in FY23. If these negative cash flows persist without sufficient liquidity or cash flow generation, it could raise finance costs for the company and hinder its growth prospects.
The top 10 customers accounted for Rs 128.62 crore (15.67 percent) of the company’s revenue in FY25, Rs 195.97 crore (24.07 percent) in FY24, and Rs 328.02 crore (32.21 percent) in FY23. Any failure to retain these key customers or expand the customer base, or a loss of business from these clients, could hurt the company’s business and financial standing.
A substantial portion of the company’s revenue is derived from its trading vertical, which involves the bulk trading of agricultural produce such as rice and sugar. It accounted for Rs 83.18 crore (10.13 percent) of the company’s revenue in FY25, Rs 141.16 crore (17.34 percent) in FY24, and Rs 431.21 crore (42.34 percent) in FY23. Any adverse change or discontinuation in the policies relating to the procurement, import, and export of the agricultural produce can affect the company’s future results of operations.
Revenue from exports accounted for Rs 273.51 crore (33.33 percent) of the company’s total revenue in FY25, Rs 406.52 crore (49.93 percent) in FY24, and Rs 669.62 crore (65.74 percent) in FY23. With a considerable portion of its revenue denominated in foreign currencies, the company is exposed to the risk of fluctuations in exchange rates, which can adversely affect its financial results.
Patel Retail has faced legal proceedings in the past regarding product deficiencies, such as allegations of unsafe products under the Food Safety & Standards Act, 2006. While the company has not faced significant product liability claims, such lawsuits diminish the company’s standing in the market.
The company’s revenue in the retail business is significantly dependent on the sale of food products such as groceries, cereals, pulses, and spices. It accounted for Rs 269.43 crore (73.04 percent) of the company’s revenue from retail sales in FY25, Rs 213.85 crore (73.81 percent) in FY24, and Rs 196.30 crore (73.64 percent) in FY23. Any shifts in consumer preferences, a fall in demand, or failure to maintain product quality could hit the company’s revenue and finances.
The company, its directors, promoters, key managerial personnel, and senior management personnel are involved in certain ongoing legal proceedings, including criminal and tax-related cases. Any adverse judgments in any of these cases could hurt the company’s business prospects.
As of FY25, the company had trade receivables of Rs 124.64 crore, representing 15.19 percent of the company’s revenue from operations. This is an increase from Rs 96.56 crore (11.86 percent) in FY24. Any failure to collect these receivables on time or at all can negatively impact the business and its financial condition.
Patel Retail's products, especially in the food and FMCG segments, are highly susceptible to seasonal variations, such as increased demand for dry fruits during the winter months and beverages during summer. Furthermore, adverse climatic conditions, such as irregular monsoons or extreme weather events, may disrupt raw material availability or impact consumer behaviour, resulting in fluctuations in sales and revenues. Any inability to address this fluctuation in demand could adversely affect the company’s business and financial condition.
As of May 31, 2025, the company had outstanding financial indebtedness amounting to Rs 179.38 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.
Patel Retail Financials
*All values are in Rs. Cr
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Application Details of Patel Retail IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹237 - 255 | ₹2 Lakh |
| Employee | ₹217 - 235 | ₹2 Lakh |
| High Networth Individual | ₹237 - 255 | ₹2 - 5 Lakh |
For Patel Retail IPO, eligible investors can apply as Regular & Employee.