Ratnadeep Retail IPO
Ratnadeep Retail Limited has filed a draft red herring prospectus (DRHP) with SEBI for a mainboard IPO, a fresh issue and offer for sale. SEBI issued its observations on 27 October 2026, so the company can open the IPO any time up to 27 October 2027. The draft proposes a fresh issue of up to ₹400.00 crore and an offer for sale of up to 1,48,60,000 shares by three promoter selling shareholders. In FY26 the company made a profit of ₹36.70 crore on revenue of ₹2,223.14 crore, after a loss in FY25. The price band, lot size and IPO dates are not announced yet.
- Status
- SEBI observations issued27 Oct 2026
- SEBI received draft
- 1 Jul 2026
- Type of issue
- Fresh issue and offer for sale
- Lead manager
- Motilal Oswal Investment Advisors Ltd.
- Must open by
- 27 Oct 202712 months from observations
- Price band and dates
- Not announced
Where it stands
Ratnadeep Retail IPO: where it stands
SEBI processing status, 30 Oct 2026- Draft filed with SEBI1 Jul 2026
- SEBI reviewDone
- SEBI observations27 Oct 2026
- RHP and price bandNot yet
- Bidding and listingNot yet
SEBI has issued its final observations, which in practice is the go-ahead. The company can now file a red herring prospectus and open the IPO within 12 months.
DRHP at a glance
Ratnadeep Retail DRHP at a glance
Draft red herring prospectus, 1 Jul 2026What the company's draft offer document says. Figures can change in the red herring prospectus, and nothing here is a review or a recommendation.
The business
DRHP, Our Business (p. 162) and Basis for Offer Price, KPIs (p. 100)Ratnadeep Retail is an organised food, grocery and fashion retailer in south India, with stores in Telangana, Andhra Pradesh and Karnataka. Its range ran to more than 30,000 stock keeping units as of 31 March 2026, across fresh produce, staples, fast-moving consumer goods, general merchandise and apparel. It operates two formats: Ratnadeep, made up of Ratnadeep Mindful Living neighbourhood supermarkets and Ratnadeep Select premium food stores, and National Mart, a value-led hypermarket format that carries affordable fashion under the Style Mart name. An online platform, RD Click, offers ordering and home delivery in eight cities in south India. The 1Lattice report commissioned for the draft puts its gross margin highest among organised peers anchored in food and grocery in India in FY26.
The company ran 190 stores with 1.21 million square feet of retail business area across 20 cities as of 31 March 2026, against 173 stores and 0.83 million square feet in FY24. Of those, 173 were Ratnadeep stores and 17 National Mart. Private labels gave 28.23% of FY26 revenue from operations and the average bill value was ₹482.18. Average revenue a store was ₹11.70 crore in FY26. Same store sales growth was negative in both FY25 and FY26 for the group as a whole, at a fall of 4.13% and then 4.56%, with the Ratnadeep format falling and National Mart growing.
Revenue from operations by product category, FY26
- Fast-moving consumer goods: 52.50%
- Staples: 25.73%
- Fresh produce: 13.12%
- General merchandise and apparel: 8.65%
The offer
DRHP cover pages, The Offer (p. 51) and Capital Structure (p. 67)| Fresh issue | Up to ₹400.00 croreMoney goes to the company |
| Offer for sale | Up to 1,48,60,000 sharesBy promoter selling shareholders Sandeep Agarwal, up to 85,44,500 shares at a weighted average cost of ₹0.01; Manish Bhartiya, up to 31,57,750 shares at a negligible cost; and Mitesh Bhartiya, up to 31,57,750 shares at nil cost. The company receives no proceeds from the offer for sale |
| Shares before the IPO | 10,92,43,500Face value ₹1 each. The offer for sale is about 13.6% of them (ours) |
| Pre-IPO placement | Up to ₹80.00 croreOptional; would reduce the fresh issue, and will not exceed 20% of its size |
| Listing | BSE and NSEMainboard, under Regulation 6(2), because the company did not have average operating profit of at least ₹15.00 crore over the three years to FY26 as Regulation 6(1)(b) requires |
| Lead managers | Motilal Oswal Investment Advisors Limited, Axis Capital Limited and DAM Capital Advisors Limited |
| Registrar | KFin Technologies Limited |
| Promoters | Sandeep Agarwal, Manish Bhartiya, Mitesh Bhartiya, Yash Agarwal and Kavita Agarwal |
What the company plans to do with the money
DRHP, Objects of the Offer (p. 80 to 81)| Object | ₹ crore | Share of fresh issue |
|---|---|---|
| Setting up new stores under the Ratnadeep and National Mart formats | 260.03 | 65.0% |
| Repayment or prepayment, in part or full, of certain loan facilities | 40.00 | 10.0% |
| General corporate purposes (set later) |
The total shown is the fresh issue size of ₹400.00 crore. Offer expenses are deducted before these amounts. The named objects add to ₹300.03 crore (ours), with the balance going to general corporate purposes and offer expenses. Any pre-IPO placement proceeds would reduce the fresh issue.
Financials
DRHP, Summary of Financial Information (p. 54 to 56) and Basis for Offer Price, KPIs (p. 96 to 100), ₹ crore| ₹ crore | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 1,680.04 | 1,987.72 | 2,223.14 |
| EBITDA | 58.71 | 41.89 | 111.33 |
| EBITDA margin | 3.49% | 2.11% | 5.01% |
| Profit or loss after tax | 15.84 | -26.69 | 36.70 |
| Profit or loss after tax margin | 0.94% | -1.34% | 1.65% |
| Diluted EPS (₹) | 1.45 | -2.44 | 3.36 |
| Total equity | 126.66 | 100.33 | 137.96 |
| Cash from operations | 26.85 | 30.56 | 107.44 |
| Return on net worth | 12.52% | -26.75% | 26.89% |
| Return on equity | 13.35% | -23.52% | 30.80% |
| Return on capital employed | 8.57% | -3.43% | 17.82% |
| Net working capital (days) | 17.77 | 17.01 | 16.60 |
| Inventory turnover ratio (times) | 9.71 | 9.43 | 9.56 |
| Stores | 173 | 181 | 190 |
| Retail business area (million sq ft) | 0.83 | 1.10 | 1.21 |
| Average revenue a store | 9.71 | 10.98 | 11.70 |
| Same store sales growth | 1.58% | -4.13% | -4.56% |
| Private label share of revenue | 27.07% | 28.79% | 28.23% |
Restated standalone figures. The company made a loss of ₹26.69 crore in FY25 and returned to a profit of ₹36.70 crore in FY26, while revenue rose in both years. Same store sales growth was negative in FY25 and FY26 even as the store count and total area grew, so growth came from new stores. Cash from operations was positive in all three years and rose sharply in FY26. Earnings per share are restated for the bonus issue and share split. Net asset value a share was ₹12.50 as of 31 March 2026.
Listed peers named in the draft
DRHP, Basis for Offer Price (p. 98 to 99). Peer prices as of 16 June 2026 on BSE, and peer figures for the year ended 31 March 2026 on a consolidated basis.The document puts the peer group P/E high at 92.04 times for Avenue Supermarts, the low at 59.89 times for Trent and the average at 72.42 times. The P/E for Ratnadeep Retail is not given until the offer price is set, and the company's own figures are on a standalone basis while the peers' are consolidated.
| Company | Diluted EPS (₹) | P/E | RoNW |
|---|---|---|---|
| Ratnadeep Retail (FY26) | 3.36 | Set with the offer price | 26.89% |
| Avenue Supermarts | 45.63 | 92.04x | 12.14% |
| Trent | 48.37 | 59.89x | 25.61% |
| Vishal Mega Mart | 1.79 | 65.34x | 11.32% |
Risks the draft lists first
DRHP, Risk Factors (p. 17 to 23)- TelanganaTelangana gave 90.78% of FY26 revenue from operations, so conditions in that one state drive results. (Risk factor 1, p. 17)
- Two categoriesFast-moving consumer goods and staples together gave 78.23% of FY26 revenue from operations. (Risk factor 2, p. 18)
- FY25 lossThe company reported a loss of ₹26.69 crore in FY25, and the draft says it may not be able to raise profits or execute its strategy. (Risk factor 5, p. 20)
- Store networkGrowth depends on expanding, managing and siting the retail network, and adverse developments affecting store locations would hurt results. (Risk factor 7, p. 21)
- Private labelsPrivate label products gave 28.23% of FY26 revenue from operations, so their acceptance matters to margins and sales. (Risk factor 8, p. 22)
- Working capitalThe business has significant working capital requirements, and failure to obtain enough working capital would affect operations. (Risk factor 9, p. 23)
Documents
Ratnadeep Retail DRHP and documents
SEBI filingsThe DRHP has the issue size, use of the money, financials, promoters and risk factors. It can change before the final red herring prospectus.
Questions
Ratnadeep Retail IPO FAQs
When will the Ratnadeep Retail IPO open?
The date is not announced. SEBI issued observations on 27 October 2026, and SEBI rules require the IPO to open within 12 months of that date, so by 27 October 2027 (our calculation). The company announces the dates in its red herring prospectus and price band notice.
Has SEBI approved the Ratnadeep Retail IPO?
Yes. SEBI issued its final observations on 27 October 2026 (SEBI weekly processing status). SEBI does not "approve" an IPO as such; its observations let the company go ahead.
What is the Ratnadeep Retail IPO price band and lot size?
Not announced. The price band is published at least two working days before the IPO opens, and the lot size is set with it. We add both here the day they are filed.
What is the Ratnadeep Retail IPO GMP?
We do not publish a GMP. Grey market premium is unofficial: it is not regulated by SEBI and not published by any exchange. Before the price band is announced there is no issue price to compare it with.
Who is the lead manager of the Ratnadeep Retail IPO?
Motilal Oswal Investment Advisors Ltd. is the coordinating book running lead manager named in SEBI's processing status report. The DRHP lists all the lead managers and the registrar.
What will Ratnadeep Retail do with the IPO money?
According to the DRHP, the fresh issue money goes to setting up new stores under the Ratnadeep and National Mart formats (₹260.03 crore), repayment or prepayment, in part or full, of certain loan facilities (₹40.00 crore), and the rest to general corporate purposes. The offer for sale money goes to the selling shareholders, not the company.
What does Ratnadeep Retail do?
Ratnadeep Retail is an organised food, grocery and fashion retailer in south India, with stores in Telangana, Andhra Pradesh and Karnataka. Its range ran to more than 30,000 stock keeping units as of 31 March 2026, across fresh produce, staples, fast-moving consumer goods, general merchandise and apparel. It operates two formats: Ratnadeep, made up of Ratnadeep Mindful Living neighbourhood supermarkets and Ratnadeep Select premium food stores, and National Mart, a value-led hypermarket format that carries affordable fashion under the Style Mart name. An online platform, RD Click, offers ordering and home delivery in eight cities in south India. The 1Lattice report commissioned for the draft puts its gross margin highest among organised peers anchored in food and grocery in India in FY26.
Where can I read the Ratnadeep Retail DRHP?
On SEBI's website, where the draft red herring prospectus was published on 9 July 2026. The draft is dated 1 July 2026 and runs to 381 pages. It has the issue size, use of the money, financials and risk factors.
Sources: SEBI processing status of draft offer documents as on 30 October 2026, SEBI's yearly processing status archive and SEBI's list of draft offer documents, and the company's DRHP dated 1 July 2026. Day counts and the last date to open are our calculations. This page is information only, not a recommendation.