Regional retail companies chase IPO gold to fund dreams

Small-town India is emerging as the next big driver of retail growth, prompting a wave of regional companies to line up initial public offerings (IPOs) to fund expansion. A clutch of retailers focused on Tier II and Tier III markets including Sangeetha Mobiles, Poorvi Mobiles, Sathya Agencies, SS Retail, More Retail and RSB Retail India are together planning to raise over 7,000 crore through primary market.

Among these, Sathya Agencies, SS Retail, Marri Retail and RSB Retail have already filed their draft red herring prospectuses (DRHPs), while others like Ratnadeep Retail, More Retail (planning 2,000 crore IPO) , Chennai-based Poorvika Mobiles, Bangaluru-headquartered Sangeetha Gadgets, Pai International Electronics and Big C Mobiles are preparing to tap the primary market. These companies are planning an IPO of above 500 crore each.

Emails sent to these companies did not elicit any response.


At the heart of this momentum is a structural shift in consumption beyond metros. “Emerging Bharat is no longer a niche theme; it is becoming one of the most durable growth engines for Indian retail,” said Bhavesh Shah, head of investment banking at Equirus Capital.

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