New Delhi, Aug 26 (HS): Shares of Patel Retail Ltd., a supermarket chain operating across Tier-3 cities and semi-urban regions, made a strong debut on Dalal Street Tuesday, rewarding IPO investors with double-digit listing gains. However, post-listing profit booking erased some of the initial sparkle.

The company’s stock, issued at ₹225 per share, listed at ₹305 on the BSE and ₹300 on the NSE, delivering an immediate gain of nearly 19% for investors. Buoyed by enthusiastic sentiment, shares surged in early trade, before selling pressure set in. Patel Retail finally settled at ₹287.70 on the BSE, leaving investors with a first-day gain of 12.82% over the issue price — lower than the opening premium.

Patel Retail’s ₹242.76-crore IPO, open between August 19–21, drew a stellar subscription of 95.69 times overall. The QIB portion was subscribed a record 272.14 times, the NII category 108.11 times, while retail participation was strong at 42.55 times, and the employees’ quota was 25.29 times oversubscribed.

The issue included a fresh share sale worth ₹217.21 crore and an Offer for Sale (OFS) of 10.02 lakh equity shares of face value ₹10. Proceeds will go towards reducing debt, funding working capital, and meeting general corporate requirements.

On the financial front, Patel Retail has posted steady profit growth. Net earnings surged from ₹16.38 crore in FY23 to ₹22.53 crore in FY24, and further to ₹25.28 crore in FY25. Revenue, however, was volatile — ₹1,019.80 crore in FY23, dipping to ₹817.71 crore in FY24, before stabilizing at ₹825.99 crore in FY25. Debt levels fluctuated, rising from ₹182.81 crore at end-FY23 to ₹185.75 crore in FY24, before easing to ₹180.54 crore by FY25-end.

While the listing delivered healthy double-digit returns, early investors pocketed profits swiftly, leaving the stock to close below its intraday highs.

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Hindusthan Samachar / Jun Sarkar