Supermarket chain Patel Retail has raised ₹15 crore through a pre-IPO placement by allotting 5 lakh shares at ₹300 per share. This fundraising, completed on November 27, involved participation from 44 investors and occurred before filing the red herring prospectus with the Registrar of Companies.
Post allotment, Patel Retail has reduced the fresh issue size to 85.18 lakh shares from 90.18 lakh shares, thereby reducing the overall IPO size to ₹285.60 crore at the allotment price. The issue comprises a fresh issue of 85.18 lakh shares and an offer-for-sale of 10.02 lakh shares by promoters Dhanji Raghavji Patel and Bechar Raghavji Patel.
Incorporated in 2008, the Maharashtra-based company runs 31 supermarkets under the brand Patel’s R Mart in tier-III cities and suburban areas within Thane and Raigad districts. The proceeds from the IPO would be used to repay debt of ₹60 crore and also to invest ₹115 crore in working capital requirements and general corporate purposes.
Fedex Securities is the sole book-running lead manager to the IPO. With this, Patel Retail intends to expand operations and begin to establish a foothold in the Indian retail space.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
