Supermarket Chain Patel Retail Limited, operating in tier-III cities and nearby suburban areas under the brand “Patel’s R Mart”, has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The IPO, with a face value of Rs 10 per equity share, is a mix of fresh issue of shares of up to 90.18 lakh and an offer for sale of up to 10.02 lakh equity shares by Promoter Selling Shareholders.
The offer for sale consists of the sale of equity shares of up to 7.68 lakh by Dhanji Raghavji Patel and up to 2.34 lakh equity shares by Bechar Raghavji Patel. The offer includes a reservation for subscription by eligible employees.
The company, in consultation with the book-running lead manager, may consider undertaking a further issue of equity shares through a private placement, preferential allotment, rights issue, or any other method of up to 5 lakh equity shares as a “pre-IPO placement.”. If such placement is completed, the fresh issue size will be reduced.
The offer is being made through the book-building process, wherein not more than 50% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the net offer shall be available for allocation to non-institutional investors, and not less than 35% of the net offer shall be available for allocation to retail individual investors.
The proceeds from its fresh issuance to the extent of Rs 60 crore will be utilized for repayment/prepayment, in full or part, of certain borrowings availed of by the Company, Rs 115 crore for funding of working capital requirements of the Company, and general corporate purposes.