Patel Retail IPO Day 2 Live: Is this IPO the right investment for you?
New IPOs in the stock market always bring a new hope for investors. Today we will talk about Patel Retail IPO Day 2 Live, which will cover subscription status, GMP (grey market premium), company background, and expert review. This article explains to you in emotional and simple words whether this IPO can become a long-term investment for your portfolio.
Patel Retail IPO GMP Today’s Latest Update
According to market observers, Patel Retail IPO GMP is trading at a premium of ₹ 49 today. Meaning if the upper price band of the IPO is ₹255, then the estimated listing price can go up to ₹304. That means the possibility of listing gain is around 19.22%. The grey market premium has been consistently in an upward trend in the last 13 sessions, which shows a positive sentiment.
Patel Retail IPO Subscription Status Day 2
Investors are seen to be quite active in IPO subscription. The IPO had created a blast on Day 1 itself. The subscription status of the Patel Retail IPO had reached 6.39 times. The response of retail investors was also strong, with the retail portion being subscribed 4.94 times. NII (non-institutional investors) subscribed to it 7.40 times, and the response of QIBs (qualified institutional buyers) was even better, with the bids reaching 9.88 times. The Employees segment was also subscribed 3.25 times. This clearly shows that both the buzz and demand for the Patel Retail IPO are high in the market.
Patel Retail IPO Review: What Do Experts Say?
Brokerage firms like Choice Equity Broking have recommended “Subscribe For Long Term” to Patel Retail IPO. According to experts, the valuation of the company is available at a discount compared to its peers. If the price-to-earnings ratio is looked at, it is 33.7, which seems fair as per the sector. A price-to-book ratio of 2.4 and an EV/sales ratio of 1.0 also reflect an attractive valuation.
Yes, one thing that is noticeable is the company’s debt-to-equity ratio, which is higher than its competitors. But the funds raised through the IPO will largely be used for debt repayment, which will reduce leverage in the future. This is a strong positive point that builds confidence for long-term investors.
Patel Retail IPO Details
The Patel Retail IPO comprises 85.18 lakh fresh issue shares and 10.02 lakh offer-for-sale (OFS) shares. The funds raised through this IPO will be mainly used on three things:
Debt repayment
Working capital requirements
General corporate purposes
Fedex Securities is the sole book-running lead manager of this IPO, and Bigshare Services is acting as the registrar. This structure gives a positive signal of transparency and trust to investors.
Significance of Patel Retail IPO GMP
Today’s GMP has reached ₹49. This clearly shows that there is strong demand among investors, and a solid listing is expected. If you are looking for short-term listing gains, then the trend of the grey market is giving you a positive signal. But if seen from a long-term view, experts also recommend subscribing to this IPO because the company’s growth potential is quite big.
Patel Retail’s Business Model and Growth
This supermarket chain started in 2008 and today operates 43 stores, starting its journey from Ambernath in Maharashtra. Under the brand name “Patel’s R Mart,” it has established its strong presence in tier-III cities and suburbs. Its offerings in food, non-food, apparel, and general merchandise categories are family-centric, which ensures regular demand.
In Fiscal 2025, the company’s operational revenue reached ₹820.69 crore, which is more than last year’s ₹814.19 crore. Net profit has also increased from ₹22.53 crore to ₹25.28 crore. This stable and consistent growth is a good sign that builds confidence for long-term investors.
Should you invest in the Patel Retail IPO?
If you are after short-term listing gains, then both GMP and subscription demand are in your favor. But if you are looking for a long-term retail sector play, then the Patel Retail IPO can be a solid option. After debt repayment, the balance sheet of the company will be stronger, revenue per square foot is quite impressive, and the expansion plan of the management is also aggressive. Considering all these factors, this IPO is a good bet for a long-term investor.
Disclaimer:
This article is written for informational and educational purposes only. This is not financial advice of any kind. Always consult your financial advisor before investing in the stock market.
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