RSB Retail India files draft IPO papers with SEBI
RSB Retail India files draft IPO papers with SEBI
The issue could raise Rs.1,500 crore
RSB Retail India Ltd, a multi-brand retail chain in Hyderabad, Telangana, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
As per the draft red herring prospectus (DRHP), the proposed IPO is a combination of a fresh issue of equity shares of Rs.500 crore and an offer for sale (OFS) of up to 2.98 crore equity shares by promoters.
Meanwhile, Motilal Oswal Investment Advisors, HDFC Bank and IIFL Capital Services have been appointed by RSB Retail to manage the IPO.
The company plans to utilise the proceeds worth Rs.275 crore for payment of debt and Rs.118 crore for setting up of new stores under the RS Brothers and South India Shopping Mall formats. The remaining funds will be for general corporate purposes.
Incorporated in 2008, RSB Retail is a leading multi-format apparel retailer. It caters to premium, mid-premium, and value customer segments, offering ethnic, casual and formal wear.
As of 31 March 2025, RSB Retail had 73 stores across 22 cities in three south Indian states - Telangana, Andhra Pradesh and Karnataka. The company operates through five brick-and-mortar store formats - South India Shopping Mall, RS Brothers, Kanchipuram Narayani Silks, D Royal and Value Zone Hyper Mart.
In fiscal year 2025, the firm registered a revenue from operations of Rs.2,694 crore and profit after tax of Rs.104.4 crore.
The Indian retail industry is poised for strong growth, with the market expected to reach Rs.92.6 lakh crore in 2025. The apparel and accessories constitute a major segment at Rs.6.90 trillion. It is supported by rising demand for value and affordability and the expansion of omni-channel retail models.
Meanwhile, South India’s apparel market accounted for 28 percent of the national apparel market, valued at Rs.1.72 lakh crore in fiscal 2024.
But in fiscal 2029, the market could grow at a compound annual growth rate of 12 percent to touch Rs.3.05 lakh crore.
