Hyd-based apparel retailer RSB Retail files DRHP for Rs 1500 crore IPO

HYDERABAD: RSB Retail India Limited, a Hyderabad-based multi-format apparel retailer that was formerly known as R S Brothers Retail India Limited, has filed the draft red herring prospectus (DRHP) with markets regulator Sebi to raise funds through an initial public offering (IPO).The proposed IPO, which is pegged at around Rs 1,500 crore by market sources, includes a combination of a fresh issue of equity shares of up to Rs 500 crore and an offer for sale (OFS) of around 2.98 crore equity shares by the selling shareholders of the company. The selling shareholders, as part of the OFS, include promoters Potti Venkateswarlu, Seerna Rajamouli, Tiruveedhula Prasada Rao, Potti Venkata Sai Abhinay, Seerna Suresh, Tiruveedhula Rakesh, Tiruveedhula Keshav Gupta.

The other selling shareholders are Maturu Venkata Lakshmi Sindhu, Gourishetty Lalitha and Potti Malathi Lakshmi Kumari.According to the DRHP, the retailer proposes to use the proceeds from the fresh issue to repay or prepary debt of around Rs 275 crore of debt, use Rs 118 crore for setting up new stores under the R S Brothers and South India Shopping Mall formats and utilise remaining funds for general corporate purposes.

The retailer, which had 73 stores across 22 cities in the three South Indian states of Telangana, Andhra Pradesh and Karnataka, logged a profit after tax of Rs 104 crore in FY25 on revenues of Rs 2694 crore.It primarily operates through five key brick-and-mortar store formats – R S Brothers, South India Shopping Mall, Kanchipuram Narayani Silks, Dè Royal and Value Zone Hyper Mart.Though RSB Retail was set up in 2008, the journey of RS Brothers began in 1999 when their first outlet was rolled out in Koti area of Hyderabad.Motilal Oswal Investment Advisors Limited, HDFC Bank Limited and IIFL Capital Services Limited are the book running lead managers to the issue.