HYDERABAD: RSB Retail India Limited Sets Sights on IPO

RSB Retail India Limited, formerly known as R S Brothers Retail India Limited, has taken a significant step towards its initial public offering (IPO) by filing the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). The Hyderabad-based multi-format apparel retailer is looking to raise around Rs 1,500 crore, marking a pivotal moment in its growth trajectory.

IPO Details and Strategic Use of Proceeds

The proposed IPO comprises a fresh issue of equity shares worth up to Rs 500 crore and an offer for sale (OFS) of approximately 2.98 crore equity shares by the company's selling shareholders. The proceeds are earmarked for debt repayment, setting up new stores under the R S Brothers and South India Shopping Mall formats, and general corporate purposes, showcasing RSB Retail's strategic planning for future expansion.

A Legacy of Growth and Expansion

With a rich history dating back to 1999, when its first outlet was launched in Hyderabad's Koti area, RSB Retail has grown to operate 73 stores across 22 cities in Telangana, Andhra Pradesh, and Karnataka. The retailer's diverse portfolio includes five key store formats, catering to a wide range of consumer needs and preferences.

Financial Performance and Future Prospects

RSB Retail reported a profit after tax of Rs 104 crore on revenues of Rs 2694 crore in FY25, underscoring its strong market presence and operational efficiency. With Motilal Oswal Investment Advisors Limited, HDFC Bank Limited, and IIFL Capital Services Limited as the book running lead managers, the IPO is poised to be a landmark event for the retailer and its stakeholders.