Hyderabad-headquartered supermarket chain Ratnadeep Retail has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), with the proceeds earmarked primarily for expanding its store network. According to the draft red herring prospectus (DRHP) filed on Wednesday, the company has proposed to raise ₹400 crore through a fresh issue of shares, while promoters Sandeep Agarwal, Manish Bhartiya, Mitesh Bhartiya, Yash Agarwal and Kavita Agarwal will sell up to 1.486 lakh shares via an offer-for-sale (OFS). As part of the fresh issue, Ratnadeep Retail may also consider raising up to ₹80 crore through a pre-IPO placement, with the amount raised being reduced from the fresh issue if such placement is undertaken. The company expects to receive benefits of listing including enhanced brand image and creation of a public market for equity shares in India.
The organised retailer, which focuses on food, grocery and fashion products through 190 stores across Andhra Pradesh, Telangana and Karnataka, plans to utilise ₹260 crore of the net fresh issue proceeds to set up new stores under the Ratnadeep and National Mart formats. A further ₹40 crore will be used for repayment of borrowings, while the remaining funds will be allocated towards general corporate purposes. The company operates 173 stores under the Ratnadeep format with an aggregate retail business area of 0.75 million square feet and 17 stores under National Mart with an aggregate retail business area of 0.46 million square feet as of March 2026. The company's product portfolio consists of over 30,000 stock-keeping units (SKUs) across fresh produce, fast-moving consumer goods, staples, general merchandise and apparel. As of March 31, 2026, the company operates stores under two formats - Ratnadeep comprising neighbourhood supermarkets under 'Ratnadeep - Mindful Living' and premium food stores under 'Ratnadeep Select', and National Mart, its value-led hypermarket format which also houses Style Mart for affordable fashion products.
Ratnadeep Retail reported a profit of ₹36.7 crore in FY26, compared with a loss of ₹26.6 crore in the previous financial year, according to the DRHP. Revenue rose 15% CAGR from FY24 to ₹2,223.1 crore from ₹1,987.7 crore. The company's turnaround from losses to profits demonstrates improved operational efficiency and market positioning in the competitive organised retail sector.
According to Lattice Report, Ratnadeep Retail operates in South India's food and grocery market which is estimated at ₹18.3 lakh crore in Fiscal 2026 and projected to reach ₹31.8 lakh crore by Fiscal 2031. The region is expected to grow at 11.6% over Fiscal 2026 to Fiscal 2030, outpacing the overall India market. This growth trajectory provides a favorable backdrop for the company's expansion plans across southern India.
Motilal Oswal Investment Advisors, Axis Capital and DAM Capital Advisors are the book-running lead managers to the Ratnadeep Retail IPO, with KFin Technologies serving as the registrar. The filing represents the company's strategic move to access public markets for funding its expansion plans in the growing organised retail sector across southern India. The IPO structure combines fresh equity issuance with promoter stake dilution to provide adequate capital for the company's growth initiatives. According to the draft papers, listed peers of the company include Avenue Supermarts, Vishal Mega Mart, Spencers Retail and Trent.
