RSB Retail India files DRHP with Sebi for IPO, plans to raise Rs 500 crore via fresh issue

Hyderabad-based apparel retailer RSB Retail India Ltd has filed its draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering that will combine a Rs 500 crore fresh issue with an offer for sale of up to 2.98 crore equity shares by existing shareholders.

The selling shareholders include 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.

Proceeds utilisation

According to the DRHP, RSB Retail plans to use Rs 275 crore from the fresh issue to repay or prepay certain loans. Another Rs 118 crore has been earmarked for setting up new stores under its R. S. Brothers and South India Shopping Mall formats, with the remainder to be deployed for general corporate purposes.

Business footprint

Incorporated in 2008, RSB Retail traces its origins to 1999, when the first R.S. Brothers store was launched in Koti, Hyderabad. As of March 31, 2025, the company operated 73 stores across 22 cities in Telangana, Andhra Pradesh and Karnataka, spanning five brick-and-mortar formats — South India Shopping Mall, R.S. Brothers, Kanchipuram Narayani Silks, Dè Royal and Value Zone Hyper Mart.

Financials

The company reported revenue from operations of Rs 2,694 crore in FY25, reflecting a compound annual growth rate of 12.55% between FY23 and FY25. Profit after tax stood at Rs 104.4 crore in FY25.

Market outlook

According to a Technopak analysis cited in the DRHP, the apparel market in South India accounted for 28% of the total apparel market and was valued at Rs 1,723 billion in FY24. It is projected to grow at a CAGR of 12% to Rs 3,050 billion by FY29.

Lead managers

Motilal Oswal Investment Advisors Limited, HDFC Bank Limited and IIFL Capital Services Limited are the book running lead managers to the issue.

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