Hyderabad: RSB Retail India Limited, a multi-format apparel retailer, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its upcoming RSB Retail India IPO.
The issue comprises a fresh issue of equity shares worth ₹500 crore and an Offer for Sale (OFS) of up to 2.98 crore equity shares by existing shareholders.
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RSB Retail India IPO: Fund Utilization and Expansion Plans
According to the DRHP, the net proceeds from the fresh issue will be used as follows:
- ₹275 crore towards repayment or prepayment of certain loan facilities.
- ₹118 crore for setting up new stores under the R S Brothers and South India Shopping Mall formats.
- Remaining proceeds for general corporate purposes.
The Offer for Sale will be carried out by existing shareholders, including 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 India: Market Presence and Financial Performance
Incorporated in 2008, RSB Retail India traces its origins back to 1999, with the launch of its first R S Brothers store in Hyderabad.
As of March 31, 2025, the company operates 73 stores across 22 cities in Telangana, Andhra Pradesh, and Karnataka under five major retail formats – South India Shopping Mall, R.S. Brothers, Kanchipuram Narayani Silks, Dè Royal, and Value Zone Hyper Mart.
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For Fiscal 2025, the company reported ₹2,694 crore revenue from operations, reflecting a CAGR of 12.55% from FY23 to FY25, and a profit after tax of ₹104.4 crore.
RSB Retail India IPO: Industry Context
The apparel market in South India accounted for 28% of India’s overall apparel industry, valued at ₹1,723 billion in FY24. The market is projected to grow at a CAGR of 12% to reach ₹3,050 billion by FY29.
RSB Retail India IPO: Lead Managers
The Book Running Lead Managers for the RSB Retail India IPO are Motilal Oswal Investment Advisors Limited, HDFC Bank Limited, and IIFL Capital Services Limited.
