Patel Retail IPO Ignites Investor Enthusiasm, Subscribed Over 9 Times on Day 2!

The Initial Public Offering (IPO) of Patel Retail Limited, an SME player making waves in the fashion garment sector, has continued its impressive run, witnessing overwhelming investor demand on its second day of bidding. By the close of trading on November 28, 2023, the public issue was subscribed a phenomenal 9.04 times overall, signaling strong market confidence in the company's prospects.

A deep dive into the subscription figures reveals the breadth of this excitement.

Retail individual investors (RIIs) led the charge, with their portion being oversubscribed an astounding 14.54 times. Non-institutional investors (NIIs) also showed robust interest, booking their allocated shares 3.51 times. The Qualified Institutional Buyers (QIB) portion had not yet seen significant subscription by the end of Day 2, a common trend as QIBs often place their bids on the final day of the IPO.

The Patel Retail IPO opened for subscription on Monday, November 27, 2023, and is set to conclude on Thursday, November 30, 2023.

The company has set the IPO price at Rs 33 per equity share, with investors required to bid for a minimum of 4000 shares, translating to a minimum investment of Rs 132,000 for a single lot. The issue is a fresh offering of 10,020,000 equity shares, aiming to raise Rs 33.07 crore. The net proceeds from the IPO are earmarked to fund capital expenditure, meet working capital requirements, and serve general corporate purposes.

Market observers are closely watching the Grey Market Premium (GMP) for Patel Retail.

As of November 28, 2023, the unlisted shares of Patel Retail were commanding a GMP in the range of Rs 15-20. This indicates that the market expects the shares to list at a significant premium of approximately 45-60% above the issue price, suggesting a potential listing price of Rs 48-53 per share (Rs 33 + Rs 15-20 GMP).

This robust GMP further fuels investor optimism about potential listing gains.

Patel Retail Limited specializes in the retail business of value-added fashion garments. The company operates through both multi-brand outlets (MBOs) and exclusive brand outlets (EBOs), prominently featuring its menswear brand “Brand Poseidon.” Beyond its retail presence, Patel Retail is also involved in the trading and distribution of goods via its wholesale business, showcasing a diversified operational model within the apparel industry.

Bigshare Services Pvt Ltd has been appointed as the official registrar for the issue, ensuring smooth processing of applications and allotment.

Expert Global Consultants Private Limited is the sole book-running lead manager for the Patel Retail IPO, guiding the company through this crucial phase of its capital market journey.