Patel Retail IPO Sees Massive Oversubscription on Second Day

The initial public offering (IPO) of Patel Retail Ltd, a major supermarket chain, has seen substantial investor enthusiasm, achieving a 19.48 times subscription by the second day of its share sale on Wednesday. The Rs 242.76-crore IPO received bids for an impressive 15,22,78,014 shares compared to just 78,15,612 shares available for sale, according to data from the National Stock Exchange (NSE).

Investor demand varied significantly across categories, with non-institutional investors oversubscribing their portion by 26.10 times. The Qualified Institutional Buyers (QIBs) category saw a 17.16 times subscription, while Retail Individual Investors (RIIs) subscribed 16.55 times. Patel Retail Ltd also secured over Rs 43 crore from anchor investors as of Monday.

Patel Retail, founded in 2008 with its first outlet in Ambernath, Maharashtra, operates under the brand 'Patel's R Mart' in Tier-III cities and suburban areas, providing a wide range of products from food to apparel. The IPO comprises a fresh issue of 85.18 lakh shares and an offer for sale of 10.02 lakh shares from promoters, with a price band of Rs 237 to Rs 255 each. Proceeds will address the company's debt and working capital needs. Fedex Securities is the sole book-running lead manager for the offer.

(With inputs from agencies.)