RSB Retail India Files DRHP with SEBI for IPO; Plans to Raise ₹500 Cr Fresh Capital for RS Brothers & South India Shopping Mall expansion
According to the filing, proceeds from the fresh issue will be utilised as follows: ₹275 crore for repayment or prepayment of certain borrowings, ₹118 crore for setting up new stores under the R.S. Brothers and South India Shopping Mall formats, and the remainder towards general corporate purposes.
Mumbai, August 17: RSB Retail India Limited, the Hyderabad-based multi-format apparel retailer, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The proposed issue consists of a fresh equity issue worth ₹500 crore and an offer for sale (OFS) of up to 2.98 crore equity shares by existing shareholders.
According to the filing, proceeds from the fresh issue will be utilised as follows: ₹275 crore for repayment or prepayment of certain borrowings, ₹118 crore for setting up new stores under the R.S. Brothers and South India Shopping Mall formats, and the remainder towards general corporate purposes.
The OFS will see share sales by promoters and other 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.
Founded in 2008, RSB Retail traces its origins to 1999 with the opening of the first R.S. Brothers store in Koti, Hyderabad. As of March 31, 2025, the company operated 73 stores across 22 cities in Telangana, Andhra Pradesh, and Karnataka under five formats – South India Shopping Mall, R.S. Brothers, Kanchipuram Narayani Silks, Dè Royal, and Value Zone Hyper Mart.
In FY25, RSB Retail posted revenues of ₹2,694 crore, reflecting a CAGR of 12.55% from FY23 to FY25, and reported a profit after tax of ₹104.4 crore.
The South Indian apparel market, which accounted for 28% of India’s overall apparel industry and was valued at ₹1,723 billion in FY24, is projected to grow at a CAGR of 12% to reach ₹3,050 billion by FY29.
Promoters of the company include Potti Venkateswarlu, Seerna Rajamouli, Tiruveedhula Prasada Rao, Potti Venkata Sai Abhinay, Seerna Suresh, Tiruveedhula Rakesh, and Tiruveedhula Keshav Gupta.
Motilal Oswal Investment Advisors Limited, HDFC Bank Limited, and IIFL Capital Services Limited are acting as the Book Running Lead Managers (BRLMs) to the issue.
