IPO News: Supermarket chain company is bringing a tremendous IPO

IPO News: There is a lot of enthusiasm among investors regarding IPO in the Indian stock market. In view of this, many companies are bringing their IPO in the market. It is being told that supermarket chain Patel Retail Limited is also coming into the market with Initial Public Offering (IPO). For this the company has submitted documents with SEBI. According to the Draft Red Herring Prospectus (DRHP), the company will issue 90.18 lakh shares in the IPO with a face value of Rs 10 per equity share. Whereas, 10.02 lakh equity shares are in offer for sale. Company promoters are selling 7.68 lakh equity shares of Dhanji Raghavji Patel and 2.34 lakh equity shares of Bechar Raghavji Patel. Some shares have been reserved for the employees of the company in the IPO.

what does the company do

Patel Retail Limited is a big super market chain company. This is Mumbai Metropolitan Region (MMR) is one of the largest chain of stores within. According to DRHP, till December last year, the company had added 31 stores covering a retail business area spread over about 1.26 lakh square feet. Patel Retail was established in FY 2008, launching its inaugural store in Ambernath, Maharashtra. Subsequently, the company expanded its operations to the suburban areas of Thane and Raigad districts of Maharashtra. The company offers a diverse range of products including food, non-food items (FMCG), general merchandise and apparel to meet the needs of families.

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What will the company do with the money?

According to the information given by the company to SEBI, the proceeds of Rs 60 crore from the IPO will be used for full or partial repayment of some borrowings taken by the company. Whereas, the company will finance Rs 115 crore for the company’s working capital requirements and general corporate purpose.

What does the company export?

The company exports products under its own brand and non-brand. This mainly includes peanuts, whole spices, powdered spices, pulses, staples, groceries and wheat flour.

When will the IPO come?

No information related to SEBI’s date has been received yet. However, it is being said that soon after getting the green signal from SEBI, the IPO will be available for investors.

(Disclaimer: Investing in stock market or IPO is subject to market risk. Before investing in any share, take complete information from a good financial advisor. We are not motivating to invest in any company.)

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