Supermarket Chain Patel Retail Limited has recently filed a Draft Red Herring Prospectus (DRHP) to SEBI for its IPO signalling to raise funds from the Indian Capital Market. The IPO, with each equity share valued at INR 10 per equity share, consists of a fresh issue of shares up to 90.18 Lacs and an offer for sale of up to 10.02 Lacs equity shares by Promoter Selling Shareholders.
Promoters Dhanji Raghavji Patel and Bechar Raghavji Patel are set to sell up to 7.68 Lacs and 2.34 Lacs equity shares, respectively, with a provision for eligible employees to subscribe.
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Exploring Pre-IPO Placement
Additionally, Patel Retail Limited may consider issuing up to 5 lakh equity shares through private placement, preferential allotment or other modes, referred to as “Pre-IPO Placement”. Adjustments to the size of the latest issue will be made accordingly.
Allocation Strategy
The offer follows a book-building process with the allocation distribution: up to 50% for qualified institutional buyers, a minimum of 15% for non-institutional investors and a minimum of 35% for retail individual investors.
Utilisation of Funds
Proceeds from the fresh issuance, totalling INR 60 Cr, will primarily go towards repaying/prepaying certain borrowings, while INR 115 Cr is earmarked for funding working capital requirements. The remaining funds will be utilised for general corporate purposes. Fedex Securities Private Limited is appointed as the sole book-running lead manager, while Bigshare Services Private Limited will serve as the registrar of the issue.
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As of December 31, 2023, the company managed thirty-one stores, covering a total Retail Business Area of approximately 1,26,000 square feet.
Disclaimer
The content of this article is only for informational purposes and we do not offer any investment advice from our end. Please consult a SEBI-registered investment advisor before making any investment decision. The information does not necessarily reflect the views/opinions of the publisher.
