Ratnadeep Retail Files IPO Papers With SEBI To Raise ₹400 Crore For Store Expansion

Ratnadeep Retail has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), setting the stage for a public listing that would fund a significant expansion of its supermarket footprint across South India.

The Secunderabad-based chain is raising ₹400 crore through a fresh issue of shares. Alongside that, three promoters, Sandeep Agarwal, Manish Bhartiya and Mitesh Bhartiya, are selling up to 1.48 crore shares through an offer for sale (OFS).

A pre-IPO placement of up to ₹80 crore is also being considered, which would reduce the fresh issue size if it goes through.

Where The Money Goes

The company has earmarked most of the fresh issue proceeds for expansion. It plans to use ₹260 crore to open new stores under the Ratnadeep and National Mart formats. Another ₹40 crore will go towards repaying existing borrowings.

The remaining proceeds from the initial public offering (IPO) will be used for general corporate purposes.

About The Business

Ratnadeep Retail runs 190 stores across Andhra Pradesh, Telangana and Karnataka, selling food, grocery and fashion products.

The competitive set it operates in includes Avenue Supermarts, Trent, Spencer's Retail and Vishal Mega Mart, all listed companies with established investor followings.

The Financial Turnaround

The timing of the listing is interesting. Ratnadeep Retail posted a net loss of ₹26.6 crore in FY25. In FY26, it swung to a profit of ₹36.7 crore. Revenue grew 11.8% to ₹2,223.1 crore from ₹1,987.7 crore.

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A company heading into a public listing with that kind of year-on-year improvement in both top line and bottom line is in a much stronger position than one that waited a year earlier.

Motilal Oswal Investment Advisors, Axis Capital and DAM Capital Advisors are managing the offering.