RSB Retail India Files Draft IPO Papers with Sebi; Seeks to Raise Rs 1,500 Cr

RSB Retail India Ltd, a multi-brand retail chain in south India, has filed preliminary papers with markets regulator Sebi for an initial public offering (IPO), and people familiar with the matter indicated the issue could raise around Rs 1,500 crore.

The proposed IPO is a combination of a fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale (OFS) of up to 2.98 crore equity shares by promoters, according to the draft red herring prospectus (DRHP) filed on Thursday.

The Hyderabad-based company plans to utilise the net proceeds to the tune of Rs 275 crore for payment of debt, Rs 118 crore for setting up of new stores under the R S Brothers and South India Shopping Mall formats; and rest for general corporate purposes.

Incorporated in 2008, RSB Retail is a leading multi-format apparel retailer catering to premium, mid-premium, and value customer segments offering ethnic wear, everyday casual wear and formal wear.

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 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 registered a revenue from operations of Rs 2,694 crore and profit after tax of Rs 104.4 crore.

According to Technopak report, the Indian retail industry is poised for strong growth, with the total market expected to reach Rs 92.6 lakh crore in fiscal 2025. Within this, apparel and accessories constitute a major segment, projected at Rs 6.90 lakh crore, supported by rising demand for value and affordability as well as the expansion of omni-channel retail models.

Technopak estimates that the apparel market in south India accounted for 28 per cent of the national apparel market, valued at Rs 1.72 lakh crore in fiscal 2024. This market is expected to grow at a compound annual growth rate of 12 per cent to touch Rs 3.05 lakh crore by fiscal 2029.

Motilal Oswal Investment Advisors, HDFC Bank and IIFL Capital Services have been appointed by RSB Retail India to manage its public issue.