Patel Retail shares jump nearly 20% to Rs 305 in market debut trade

New Delhi: Shares of Patel Retail, a Mumbai-based supermarket player, on Tuesday listed with a premium of nearly 20 per cent against the issue price of Rs 255.

The stock started trading at Rs 305, a jump of 19.60 per cent from the issue price on the BSE. Later, it pared some of its gains to trade at Rs 289.75.

On the NSE, the stock listed at Rs 300, up 17.65 per cent. Later, it trimmed some of its gains to trade at Rs 290.20.

The company commanded a market valuation of Rs 981.98 crore on the NSE.

The markets are trading in the negative territory. The 30-share BSE Sensex declined 569.33 points or 0.70 per cent to 81,066.58 in the morning trade. The 50-share NSE Nifty dropped 161.05 points or 0.65 per cent to 24,806.70.

The initial share sale of Patel Retail Ltd was subscribed 95.70 times on the closing day of bidding on Thursday.

The 242.76-crore initial public offering (IPO) had a price band of Rs 237-255 apiece.

The company's IPO is a mix of a fresh issue of 85.18 lakh shares and an offer for sale of 10.02 lakh shares by promoters.

Proceeds from the fresh issuance will be used for payment of debt, funding of working capital requirements of the company and for general corporate purposes.

Patel Retail was established in 2008, with its inaugural store in Ambernath, Maharashtra. Since then, it has expanded its operations throughout the suburban regions of Thane and Raigad districts in Maharashtra.

The company provides a diverse range of products, including food, non-food items, general merchandise and apparel to meet the needs of families. It operates in Tier-III cities and nearby suburban areas under the brand 'Patel's R Mart'.