Regional retail companies chase IPO gold to fund dreams

Small-town India is emerging as the next big driver of retail growth, prompting regional companies to prepare initial public offerings (IPOs) to fund expansion. A group of retailers focusing on Tier II and Tier III markets including Sangeeta Mobiles, Purvi Mobiles, Satya Agencies, SS Retail, More Retail and RSB Retail India plan to raise over 7,000 crore through the primary market.

Among these, Satya Agencies, SS Retail, Mary Retail and RSB Retail have already filed their draft red herring prospectuses (DRHPs), while others such as Ratnadeep Retail, More Retail (planning a Rs 2,000-crore IPO), Chennai-based Poorvika Mobiles, Bangalore-headquartered Conglomerate and Big Mobile Co. Prepare to tap the primary market. These companies are planning an IPO of over 500 crores.

Emails sent to these companies did not receive any response.

At the heart of this momentum is structural change in consumption outside metros. “Emerging India is no longer a niche theme; it is becoming the most sustainable growth engine for Indian retail,” said Bhavesh Shah, head of investment banking at Equirus Capital.

Rising disposable income, formalization of the economy, better digital connectivity, adoption of payments led by UPI, aspirational spending shaped by social media and better access to branded products are all driving consumption in Tier II and Tier III cities.