IPO ahead: Value-fashion retailer Ratnadeep Retail gets Sebi nod to raise funds through public issue

Synopsis

Ratnadeep Retail has received Sebi approval to launch an IPO comprising a fresh issue of up to Rs 400 crore and an offer for sale of 1.49 crore shares. The Hyderabad-based retailer plans to use part of the proceeds to repay borrowings and expand its store network across India.

Ratnadeep Retail, an organised food, grocery and value-fashion retailer, has received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), according to an update on the capital markets regulator’s website on Friday.

The proposed IPO of the Hyderabad-based company comprises a fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale (OFS) of up to 1.49 crore equity shares by the promoter selling shareholders, according to its draft red herring prospectus (DRHP).

The company plans to utilise Rs 40 crore from the net proceeds of the fresh issue towards repayment or prepayment of certain borrowings. Another Rs 260 crore will be deployed towards expanding its retail footprint through the addition of new stores under the Ratnadeep and National Mart formats. The balance proceeds will be used for general corporate purposes.

Motilal Oswal Investment Advisors, Axis Capital and DAM Capital Advisors are the book-running lead managers to the issue.

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Ratnadeep Retail offers a diversified portfolio of more than 30,000 stock-keeping units (SKUs) across fresh produce, fast-moving consumer goods (FMCG), staples, general merchandise and apparel. Its product assortment caters to both essential and discretionary consumer spending.

As of March 31, 2026, the company operated 190 stores across its two retail formats. Under the Ratnadeep brand, it operates 'Ratnadeep – Mindful Living', a neighbourhood supermarket format, and 'Ratnadeep Select', which focuses on premium food retailing.

The company also operates National Mart, a value-led hypermarket chain that houses Style Mart, its affordable fashion retail offering.

Ratnadeep Retail may also undertake a pre-IPO placement of equity shares aggregating up to Rs 80 crore, in consultation with the book-running lead managers, before filing the red herring prospectus with the Registrar of Companies (RoC). In the event of such a placement, the size of the fresh issue will be reduced by the amount raised.

On the financial front, the company reported revenue from operations of Rs 2,223 crore in FY26, registering a compound annual growth rate (CAGR) of 15% since FY24. Its profit after tax (PAT) stood at Rs 36.7 crore during the fiscal.

According to the DRHP, Avenue Supermarts, Vishal Mega Mart, Spencer's Retail and Trent are among the company's listed peers.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here

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