RSB Retail Plans IPO with ₹500 Cr Fresh Issue, OFS of 2.98 Cr Equity

RSB Retail India Limited, a leading multi-format apparel retailer catering to premium, mid-premium, and value customer segments offering ethnic wear, everyday casual wear and formal wear, has filed the draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise funds through an initial public offering (IPO).

According to the DRHP, the proposed IPO of the Hyderabad based company is a combination of a fresh issue of equity shares aggregating up to Rs. 500 crore and an offer for sale (OFS) of up 2.98 crore equity shares by the selling shareholders.

As part of the OFS, the Selling Shareholders include Potti Venkateswarlu, Seerna Rajamouli, Tiruveedhula Prasada Rao, Potti Venkata Sai Abhinay, Seerna Suresh, Tiruveedhula Rakesh, Tiruveedhula Keshav Gupta, Maturu Venkata Lakshmi Sindhu, Gourishetty Lalitha and Potti Malathi Lakshmi Kumari.

RSB Retail proposes to utilize the Net Proceeds from the Fresh Issue as follows: Rs. 275 crore towards repayment/ prepayment of certain loan facilities availed by the company; Rs. 118 crores towards setting up of new stores under the R. S. Brothers and South India Shopping Mall formats; and rest on general corporate purposes.

RSB Retail, incorporated in 2008, traces its journey to year 1999, when the first R.S. Brothers store in Koti, Hyderabad, Telangana was launched. As of March 31, 2025, RSB Retail had 73 stores across 22 cities in three South Indian states – Telangana, Andhra Pradesh and Karnataka. It operates primarily through five key brick-and-mortar store formats - South India Shopping Mall, R.S. Brothers, Kanchipuram Narayani Silks, Dè Royal and Value Zone Hyper Mart

In Fiscal 2025, RSB Retail India Limited registered a revenue from operations of Rs. 2694 crore recording a CAGR of 12.55% from FY23 to FY25. The FY25 profit after tax was Rs. 104.4 crore.

Potti Venkateswarlu, Seerna Rajamouli, Tiruveedhula Prasada Rao, Potti Venkata Sai Abhinay, Seerna Suresh, Tiruveedhula Rakesh and Tiruveedhula Keshav Gupta are the Promoters of the Company.

The apparel market in south India accounted for 28% of the total apparel market and was valued at Rs. 1,723 billion in Fiscal 2024. This market is further projected to grow at a CAGR of 12% to reach a value of Rs. 3,050 billion by Fiscal 2029.

Motilal Oswal Investment Advisors Limited, HDFC Bank Limited and IIFL Capital Services Limited are the Book Running Lead Managers to the issue.