Share Market News: This company will also bring IPO, has submitted initial documents to SEBI, you be ready!

Share Market News: RBS Retail India Ltd, a well-known multi-brand retail chain in South India, has submitted the Draft Red Herring Prospectus (DRHP) for its initial public offering (IPO) before the Securities and Exchange Board of India (SEBI). According to market experts, the company plans to raise around Rs 1,500 crore through this IPO. According to a PTI report, in this IPO, the company will issue new equity shares worth up to Rs 500 crore, while its promoters will make an Offer for Sale (OFS) of 2.98 crore equity shares.

Use of funds: Company's strategy

The company has made a clear plan for the use of the funds raised. This amount will be used in the following areas:

Rs 275 crore: To repay the existing debt.

Rs 118 crore: To open new stores, including the company's leading brands like R S Brothers and South India Shopping Mall.

The remaining amount: For general corporate purposes, such as meeting working capital and other operational needs.

RBS Retail India: An Introduction

Founded in 2008, RBS Retail India Limited is a leading company in the apparel and retail sector in South India. It offers a wide range of ethnic, casual and formal apparel, targeting premium, mid-premium and value category customers. As of March 31, 2025, the company has 73 stores across 22 cities in Telangana, Andhra Pradesh and Karnataka. Its key brands include:

South India Shopping Mall

R.S. Brothers

Kanchipuram Narayani Silks

Day Royal

Value Zone Hyper Mart

In FY 2025, the company posted a total revenue of Rs 2,694 crore, while its net profit stood at Rs 104.4 crore. This financial performance reflects the company's strong market position and customer base.

Indian Retail Market: An Emerging Opportunity

According to a recent report by Technopak, India's retail sector is expanding rapidly. Its total market size is estimated to reach Rs 92.6 lakh crore by FY 2025. The apparel and accessories segment accounts for Rs 6.90 lakh crore of this. The South Indian apparel market, which accounts for 28% of the country's total apparel market, was worth Rs 1.72 lakh crore in FY 2024.

This market is expected to grow at a compound annual growth rate (CAGR) of 12% over the next five years and is estimated to reach Rs 3.05 lakh crore by 2029. RBS Retail India is set to further strengthen its position in this growing market.

IPO Management and Future Plans

RBS Retail India has appointed Motilal Oswal Investment Advisors, HDFC Bank, and IIFL Capital Services as book running lead managers to manage its IPO. This move is an important step towards expanding the company and further enhancing its brand value.