RSB Retail Files DRHP with SEBI for ₹1,500 Crore IPO – August 2025

RSB Retail India Limited, one of South India’s most prominent fashion and apparel chains, has moved a step closer to the stock market. The company has lodged its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise about ₹1,500 crore through a public issue.

IPO Composition

The planned issue will have two parts:

• A fresh share issue worth ₹500 crore
• An Offer for Sale (OFS) of nearly 2.98 crore shares by existing stakeholders and promoters.
• Those offloading stakes include members of the promoter group such as Potti Venkateswarlu, Seerna Rajamouli, and Tiruveedhula Prasada Rao, among others.

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Utilisation of Funds

According to the DRHP, the company will direct the net proceeds toward three main purposes:

• Roughly ₹275 crore will be used to clear or prepay loans.
• Around ₹118 crore is marked for new store rollouts under its R S Brothers and South India Shopping Mall formats.
• The remaining balance will be reserved for general business needs.

About the Company

Set up in 2008 and headquartered in Hyderabad, RSB Retail caters to shoppers across premium, mid-market, and value categories. Its portfolio includes ethnic wear, casual fashion, and formal clothing.

As of March 2025, it operated 73 outlets in 22 cities across Telangana, Andhra Pradesh, and Karnataka. Its formats include R.S. Brothers, South India Shopping Mall, Kanchipuram Narayani Silks, Dé Royal, and Value Zone Hyper Mart.

The company reported ₹2,694 crore revenue with ₹104.4 crore profit after tax (PAT) in FY25, marking a steady CAGR of 12.55% since FY23.

Industry Landscape

Consultancy firm Technopak has projected strong growth for Indian retail. The overall retail market is expected to reach ₹92.6 lakh crore by FY25, while the apparel and accessories segment is pegged at ₹6.90 lakh crore.

South India plays a key role, contributing 28% of the country’s apparel sales in FY24. That share, valued at ₹1.72 lakh crore, could expand to ₹3 lakh crore by FY29, growing at a pace of around 12% CAGR.

Lead Managers

The public issue will be led by Motilal Oswal Investment Advisors, HDFC Bank, and IIFL Capital Services. KFin Technologies has been appointed as the registrar for the IPO.

Outlook

By combining a fresh share sale with an offer for sale, RSB Retail aims to reduce debt, fund store expansion, and strengthen its corporate balance sheet. With a strong presence in South India, consistent revenue growth, and an expanding market, the IPO is expected to attract keen investor interest.