Ratnadeep Retail's planned initial public offering includes a fresh issue of shares worth up to Rs 400 crore alongside an offer for sale of 1.49 crore shares. The company plans to allocate Rs 260 crore toward expanding its footprint and Rs 40 crore toward debt repayment, with the rest set aside for corporate purposes. The retailer operates 190 stores across diverse brand formats offering more than 30,000 stock-keeping units. Additionally, the company may conduct an Rs 80 crore pre-IPO placement that would reduce the fresh issue size.
Key points
The retailer has secured market regulator approval to raise funds for expanding its footp…: The retailer has secured market regulator approval to raise funds for expanding its footprint and paying down borrowings.
A potential pre-IPO placement of up to Rs 80 crore could proportionally scale back the si…: A potential pre-IPO placement of up to Rs 80 crore could proportionally scale back the size of the fresh issue.
The company competes directly in the retail marketplace against established listed peers…: The company competes directly in the retail marketplace against established listed peers such as Avenue Supermarts and Trent.
Sources checked by our analysis pipeline: 1
The proposed IPO of the Hyderabad-based company comprises a fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale (OFS) of up to 1.49 crore equity shares by the promoter selling shareholders, according to its draft red herring prospectus (DRHP).
The company plans to utilise Rs 40 crore from the net proceeds of the fresh issue towards repayment or prepayment of certain borrowings. Another Rs 260 crore will be deployed towards expanding its retail footprint through the addition of new stores under the Ratnadeep and National Mart formats. The balance proceeds will be used for general corporate purposes.
Motilal Oswal Investment Advisors, Axis Capital and DAM Capital Advisors are the book-running lead managers to the issue.
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Ratnadeep Retail offers a diversified portfolio of more than 30,000 stock-keeping units (SKUs) across fresh produce, fast-moving consumer goods (FMCG), staples, general merchandise and apparel. Its product assortment caters to both essential and discretionary consumer spending.
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