Patel Retail Share Price: Stock Makes Strong Debut with 18% Premium on NSE
Today a new star has entered the stock market – Patel Retail share price has made its debut in a spectacular manner. The stock opened at ₹300 per share on NSE, which is almost 18% higher than the IPO issue price of ₹255. This was a very positive surprise for the investors, as people were already excited about this IPO according to the grey market premium (GMP).
Patel Retail Share Price Strong Listing
The listing day of Patel Retail was memorable for both new investors of the stock market and seasoned traders. Patel Retail share price opened at ₹ 300 on NSE, which was at a premium of 17.65% to the issue price. It also debuted strongly on BSE, where the stock opened at ₹ 305, i.e. almost 19.61% higher. This performance clearly shows that there was a strong demand for Patel Retail in the market.
During the IPO, the unbridled interest of investors was also visible. Patel Retail IPO was oversubscribed 95.70 times, which is a record-level response. This made it clear that a great rally will be witnessed on the listing day of the stock.
Patel Retail IPO Details
Now let’s understand in a little detail how the IPO journey was. The subscription window of Patel Retail IPO was open from 19 August to 21 August. The face value of the shares was ₹10, and the price band was fixed between ₹237 to ₹255. The minimum lot size was kept at 58 shares, and bidding was possible in multiples of that as well.
Through this IPO, the company issued 85.18 lakh fresh shares and 10.02 lakh shares came as offer for sale from the promoters. That is, the total offer was quite big, but the demand was many times more than that.
The company will use a major portion of the funds raised through the IPO to repay its debt and strengthen its working capital. Apart from this, some funds will also be allocated for general corporate purposes. The lead manager of the IPO was Fedex Securities and the registrar was Bigshare Services.
Patel Retail: Company Background
The story of Patel Retail, which was established in 2008, is also quite inspiring. The company started its first store in Ambernath, Maharashtra. Gradually Patel Retail expanded its network and made its presence felt in the suburban areas of Thane and Raigad districts.
The company operates its stores under the name “Patel’s R Mart” where customers can get a wide variety of food items, non-food products, general merchandise and clothing at one place. This model is specially designed for Tier-III cities and suburban regions where it is convenient to do family shopping under one roof.
Patel Retail IPO GMP Trend
There was strong buzz for Patel Retail share price in the grey market before the listing of the IPO. Patel Retail IPO GMP was trading at a premium of ₹52, which meant that investors were ready to pay more than the issue price for the stock.
If we compare it with the upper price band of IPO of ₹255, then the estimated listing price was calculated to be ₹307, which was almost 20% higher. This estimate proved to be absolutely correct as the actual listing was also close to it.
According to experts, grey market premium is a kind of indicator from which we get to know the sentiment of the market investors. GMP was quite positive for Patel Retail, which ultimately proved to be correct on the listing day.
Patel Retail Share Price: Investor Sentiment
At present, there is a lot of optimism about Patel Retail in the investor community. On one hand, the company’s business model has growth potential in Tier-III cities and suburban areas, on the other hand, the bumper subscription of the IPO and successful listing have further increased people’s confidence.
Market experts believe that if the company executes its expansion plans and capital allocation strategy correctly, Patel Retail share price can go even higher in the coming time. But as is always the case, there is also risk in the stock market, so every investor should take a decision after looking at his risk appetite.
Conclusion
Patel Retail has started its stock market journey with a great start. Strong listing, oversubscription and positive GMP have created a solid base. Now everyone’s focus will be on how the company achieves its future expansion and profitability targets.
Disclaimer:
This article is for informational purposes only. The details given in it are based on market trends and publicly available data. This is not financial advice of any kind. Before investing in the stock market, definitely take advice from your financial advisor.
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