Patel Retail IPO oversubscribed 95x, GMP jumps ahead of listing
What's the story
Patel Retail, a leading supermarket chain, is all set to make its stock market debut on August 26. The company's shares will be listed on both the Bombay Stock Exchange(BSE) and the National Stock Exchange (NSE). The initial public offering (IPO), which closed on August 21, drew a stellar response from investors. This has raised expectations of a strong performance for Patel Retail's shares on their debut day.
Market performance
Current gray market premium at ₹48
Patel Retail's shares are currently commanding a gray market premium (GMP) of ₹48, or 18.82% over the issue price of ₹255. This means that the stock is trading at ₹303 in the unlisted market, indicating a possible premium listing if the trend continues. The GMP is often seen as an early indicator of listing price trends, although market conditions on debut day also play a major role.
Investor response
IPO oversubscribed 95 times
The three-day subscription window for Patel Retail's IPO, which was open from August 19-21, saw a massive response from investors. The issue was subscribed 95 times with bids for 74.79 crore shares against the 0.78 crore shares on offer. Such high demand indicates strong investor confidence in the company's growth potential. Given this robust oversubscription and healthy GMP, Patel Retail is likely to list at a premium of 15-20% over its issue price on Tuesday.
Fund utilization
Company intends to use IPO proceeds for debt repayment
Patel Retail plans to utilize the IPO proceeds for debt repayment (₹59 crore), working capital requirements (₹115 crore), and general corporate purposes. The company operates a chain of supermarkets under the brand "Patel's R Mart" in tier-III cities and suburban Maharashtra. As of May 2025, it had 43 stores across Thane and Raigad districts with a total retail space of about 1.78 lakh sq. ft. It reported a revenue of ₹826 crore and profit of ₹25.3 crore in FY25.