Hyderabad-based Ratnadeep Retail Files For IPO To Raise Up To ₹400 Crore

Hyderabad-headquartered food, grocery, and value-fashion retailer Ratnadeep Retail Limited has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, the Securities and Exchange Board of India (Sebi), for a proposed Initial Public Offering (IPO). The retail chain, which has a major presence in Telangana, Andhra Pradesh, and Karnataka, plans to raise up to ₹400 crore through a fresh issue of equity shares.

In addition to the fresh issue of shares, the proposed public offering will include an offer for sale (OFS) of up to 1,48,60,000 equity shares by the company's promoter-selling shareholders. The promoters of the retail company are Sandeep Agarwal, Manish Bhartiya, Mitesh Bhartiya, Yash Agarwal, and Kavita Agarwal.

According to the draft red herring prospectus, Ratnadeep Retail may also consider a pre-IPO placement of equity shares. This placement could aggregate up to ₹80 crore and would take place before the filing of the Red Herring Prospectus (RHP) with the Registrar of Companies. If the company completes this pre-IPO placement, the total amount raised from it will be deducted from the proposed fresh issue.

The Hyderabad-based retailer has outlined specific plans for utilizing the capital raised from the fresh issue. The company plans to allocate ₹260 crore of the net proceeds to set up new retail stores under its Ratnadeep and National Mart formats.

Furthermore, Ratnadeep Retail plans to use ₹40 crore from the net proceeds for the repayment or prepayment of its existing loan facilities. The remaining portion of the funds raised from the fresh issue will be utilized for general corporate purposes.

Ratnadeep Retail operates across the three southern states of Telangana, Andhra Pradesh, and Karnataka. The retailer currently offers more than 30,000 stock-keeping units to its customers. Its product range spans across multiple categories, including fresh produce, fast-moving consumer goods (FMCG), staples, general merchandise, and apparel.