Hyderabad, November 1: Hyderabad-based supermarket chain Ratnadeep Retail has cleared a major hurdle on its way to the stock market. The Securities and Exchange Board of India (SEBI) has issued its observations on the company’s draft prospectus, a step that allows Ratnadeep Retail to proceed with its proposed initial public offering (IPO).
The proposed issue combines a fresh issue of equity shares worth up to Rs 400 crore with an offer for sale (OFS) of up to 1.49 crore equity shares by promoter selling shareholders, according to the draft red herring prospectus (DRHP). The company filed its draft papers with SEBI in July 2026.
For shoppers in Telangana, Andhra Pradesh and Karnataka, the Ratnadeep name is a familiar one. For investors, the SEBI nod puts another South India-focused consumer business firmly in the IPO pipeline.
What the IPO will raise and how the money will be used
The fresh issue is the part that brings new money into the company. Of the up to Rs 400 crore it plans to raise, Ratnadeep Retail intends to use Rs 260 crore to open new stores under its Ratnadeep and National Mart formats. Another Rs 40 crore will go towards repayment or prepayment of borrowings, and the balance will be used for general corporate purposes.
The offer for sale component is different. Those 1.49 crore shares will be sold by existing promoter shareholders, so that money goes to the sellers rather than into the company’s expansion plans. The final issue size, price band and subscription dates have not been announced yet. Those details will come in the red herring prospectus filed closer to the launch, and the SEBI observations do not amount to an approval of any issue price.
Ratnadeep Retail may also undertake a pre-IPO placement of shares worth up to Rs 80 crore, in consultation with its book-running lead managers, before filing the red herring prospectus with the Registrar of Companies. If that placement goes ahead, the size of the fresh issue would be reduced accordingly.
A 190-store network built across three states
As of March 31, 2026, Ratnadeep Retail operated 190 stores across Telangana, Andhra Pradesh and Karnataka. The network spans three formats: neighbourhood supermarkets under the Ratnadeep brand, premium food stores under Ratnadeep Select, and hypermarkets under the National Mart brand. Across these stores, the company stocks more than 30,000 products, ranging from fresh produce and staples to FMCG goods, general merchandise and apparel.
That footprint is the core of the IPO story. Ratnadeep has built its business state by state in the south, and the plan to spend Rs 260 crore on new stores signals it intends to deepen that regional presence.
Motilal Oswal Investment Advisors, Axis Capital and DAM Capital Advisors are the book-running lead managers to the issue.
What the numbers show
Ratnadeep Retail reported revenue from operations of Rs 2,223 crore in the financial year 2025-26, with profit after tax of Rs 36.7 crore. The revenue figure reflects steady growth in a business where margins are famously thin and scale matters more than any single quarter’s profit.
That context matters for anyone tracking the IPO. A grocery retailer lists on store economics and supply chain efficiency, not on a sudden profit jump, which is why the Rs 40 crore earmarked for debt repayment sits alongside the expansion plan.
- Fresh issue: up to Rs 400 crore
- Offer for sale: up to 1.49 crore shares by promoter shareholders
- New stores: Rs 260 crore earmarked for Ratnadeep and National Mart outlets
- Debt repayment: Rs 40 crore from the net proceeds
- Current network: 190 stores across three states as of March 31, 2026
- FY26 performance: Rs 2,223 crore revenue, Rs 36.7 crore profit after tax
What happens next
With SEBI’s observations in hand, Ratnadeep Retail can move to the next stage, including filing the red herring prospectus and fixing the price band and issue dates. None of those has been announced so far.
Ratnadeep was among a batch of IPO proposals cleared by SEBI in the same weekly update, alongside consumer appliances maker Atomberg Technologies, a sign that the primary market pipeline remains active heading into the final months of the year.
FAQs
Has Ratnadeep Retail’s IPO launched yet?
No. SEBI has issued its observations on the draft prospectus, which allows the company to proceed. The price band, issue dates and final offer size have not been announced yet.
How much does Ratnadeep Retail plan to raise?
The proposed IPO includes a fresh issue of up to Rs 400 crore and an offer for sale of up to 1.49 crore shares by promoter selling shareholders.
Where will the IPO money be spent?
Rs 260 crore is earmarked for new stores under the Ratnadeep and National Mart formats, Rs 40 crore for repayment or prepayment of borrowings, and the rest for general corporate purposes.
How many stores does Ratnadeep Retail run?
As of March 31, 2026, the company operated 190 stores across Telangana, Andhra Pradesh and Karnataka, under the Ratnadeep, Ratnadeep Select and National Mart formats.
Who are the bankers to the Ratnadeep Retail IPO?
Motilal Oswal Investment Advisors, Axis Capital and DAM Capital Advisors are the book-running lead managers.
Ratnadeep Retail’s journey from a Hyderabad supermarket chain to a listed company is now one step closer.
