Ratnadeep Retail Secures SEBI Approval for ₹400 Crore IPO
Hyderabad-headquartered supermarket and grocery chain Ratnadeep Retail Limited has secured approval from the Securities and Exchange Board of India (SEBI) to raise capital through an initial public offering (IPO). The market regulator issued its observation letter for the company's Draft Red Herring Prospectus (DRHP), which was originally submitted in July 2026.
Issue Structure and Size
The proposed IPO comprises two key components:
- A fresh issue of equity shares aggregating up to ₹400 crore.
- An offer for sale (OFS) of up to 1,48,60,000 (approximately 1.49 crore) equity shares by promoter selling shareholders.
The promoters participating in the OFS include Sandeep Agarwal, Manish Bhartiya, and Mitesh Bhartiya. Additionally, the company may explore a pre-IPO placement of equity shares worth up to ₹80 crore in consultation with the merchant bankers; if executed, the fresh issue component will be reduced by that amount.
The book-running lead managers appointed to manage the public offer are Motilal Oswal Investment Advisors, Axis Capital, and DAM Capital Advisors.
Utilisation of Proceeds
According to the draft offer documents, the net proceeds raised from the ₹400 crore fresh issue will be directed towards the following objectives:
- Store Network Expansion: ₹260 crore will be deployed towards setting up new outlets across its supermarket and value formats.
- Debt Reduction: ₹40 crore will be used for the repayment or prepayment of existing borrowings and credit facilities.
- General Corporate Purposes: The balance of the net proceeds will support ongoing operational and administrative requirements.
Business Footprint and Financial Performance
Established in southern India, Ratnadeep operates an organised grocery and value retail footprint across Telangana, Andhra Pradesh, and Karnataka. As of March 31, 2026, the company ran an operational network of 190 stores spanning two core retail models:
- Ratnadeep Supermarkets: Operating as "Ratnadeep – Mindful Living" for neighbourhood retail and "Ratnadeep Select" for premium grocery and food selections.
- National Mart: A value-focused hypermarket chain that houses "Style Mart" to offer affordable apparel and general merchandise.
Ratnadeep stocks over 30,000 stock-keeping units (SKUs) including fresh produce, fast-moving consumer goods (FMCG), staples, and household merchandise.
On the operational front, Ratnadeep Retail reported revenue from operations of ₹2,223 crore in FY26. The company posted a profit after tax (PAT) of ₹36.7 crore for the same fiscal year.
Upon listing on the BSE and the NSE, the regional retail major will join peers in India's listed organised retail space, such as Avenue Supermarts (DMart), Trent, Spencer’s Retail, and Vishal Mega Mart.
