RSB Retail India Ltd, a prominent multi-brand retail chain in South India, has submitted preliminary documents to market regulator Sebi for an initial public offering (IPO), which, according to sources, could raise around ₹1,500 crore.
IPO details
The IPO will comprise a fresh issue of equity shares worth up to ₹500 crore and an offer for sale (OFS) of up to 2.98 crore equity shares by the promoters, as per the draft red herring prospectus (DRHP) filed on Thursday.
Headquartered in Hyderabad, the company intends to use ₹275 crore from the net proceeds to repay debt, ₹118 crore for opening new stores under the R S Brothers and South India Shopping Mall brands, with the remainder allocated for general corporate purposes.
Established in 2008, RSB Retail caters to premium, mid-premium, and value segments, offering ethnic, casual, and formal apparel. As of March 31, 2025, it operated 73 stores across 22 cities in Telangana, Andhra Pradesh, and Karnataka, under five formats: South India Shopping Mall, R.S. Brothers, Kanchipuram Narayani, Silks, Dé Royal, and Value Zone Hyper Mart. In FY25, the company posted revenues of ₹2,694 crore and a profit after tax of ₹104.4 crore.
Citing a Technopak report, the company noted that India’s retail market is projected to reach ₹92.6 lakh crore in FY25, with apparel and accessories forming a significant share at ₹6.90 lakh crore, driven by affordability trends and omni-channel expansion. South India alone contributed 28% of the national apparel market in FY24, valued at ₹1.72 lakh crore, and is expected to grow at a 12% CAGR to ₹3.05 lakh crore by FY29.
Motilal Oswal Investment Advisors, HDFC Bank, and IIFL Capital Services have been appointed as lead managers for the public issue.
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