Brandman Retail IPO Commences with Strong Investor Interest
The much-anticipated initial public offering (IPO) of Brandman Retail Limited officially opened for subscription on Wednesday, February 4, 2025, and is scheduled to conclude on Friday, February 6, 2025. This marks a significant milestone for the company as it seeks to raise capital from public investors to fuel its ambitious growth plans in the competitive retail sector.
IPO Pricing and Share Structure
The Brandman Retail IPO price band has been carefully set at ₹167 to ₹176 per equity share, with each share carrying a face value of ₹10. This pricing strategy aims to attract a wide range of investors while reflecting the company's market potential. Investors have the opportunity to participate by placing bids for a minimum of 800 equity shares, with subsequent bids required to be in multiples of 800 shares. This structure is designed to accommodate both retail and institutional investors effectively.
At the upper end of the price band, the company is valued at a pre-IPO market capitalization of approximately ₹324.85 crore. The offering comprises 48.91 lakh equity shares, making around ₹82 crore available to the public after allocating shares for market makers. The allocation follows a book-building format, with up to 50% reserved for qualified institutional buyers, at least 35% for retail investors, and a minimum of 15% for non-institutional investors.
Company Overview and Business Model
Founded in 2021, Brandman Retail Limited has quickly established itself as a key player in the distribution of global sports and lifestyle brands. The organization operates through four core pillars: distribution, licensing, retail, and e-commerce, with a steadfast commitment to innovation, customer satisfaction, and sustainability. This multifaceted approach allows the company to cater to diverse market segments while maintaining high standards of quality and service.
The company runs Exclusive Brand Outlets (EBOs) across northern India, including prominent locations such as Ahmedabad, Ambala, Dehradun, New Delhi, Jalandhar, Bathinda, Gurugram, Lucknow, and Noida. Each outlet strictly adheres to the License Grantee's standards and primarily features the New Balance brand under a non-exclusive distribution agreement. Additionally, Brandman Retail operates two Multi-Brand Outlets (MBOs) named Sneakrz in Bhatinda and New Delhi, along with a total of 11 EBOs, showcasing its expanding retail footprint.
Through its non-exclusive distribution agreements, the company offers a varied and high-quality selection of products, ensuring that customers have access to premium sports and lifestyle items. Its online presence is robust, with sales processed monthly through popular platforms like Flipkart, Ajio, and Tata Cliq, highlighting its adaptability to the growing e-commerce trend.
Financial Performance and Growth Trajectory
Brandman Retail has demonstrated a significant enhancement in profitability, making it an attractive proposition for investors. For the nine months concluding in December 2025, the company recorded a profit after tax of ₹19.67 crore from a total income of ₹97.21 crore. This performance builds on a strong fiscal year 2025, where it reported a net profit of ₹20.95 crore, a substantial increase from ₹8.27 crore in FY24.
Margins have remained robust, with a PAT margin exceeding 20% as of December 2025, indicating efficient operations and healthy financial management. This growth trajectory underscores the company's potential for sustained success in the competitive retail landscape.
IPO Subscription Status and Market Response
The Brandman Retail IPO subscription status has garnered considerable attention, with data from chittorgarh.com indicating that it was 69% subscribed on day one. The retail portion saw strong demand, being 81% subscribed, while the non-institutional investor (NII) portion was booked 1.32 times. The qualified institutional buyers portion is yet to be booked, reflecting ongoing interest from different investor categories.
On the first bidding day, at 16:49 IST, the company received bids for 22,36,800 shares against 32,54,400 shares on offer, showcasing a healthy level of investor participation. This response highlights the market's confidence in Brandman Retail's business model and growth prospects.
Utilization of IPO Proceeds and Future Plans
The funds raised from the IPO will be strategically deployed to enhance the company's retail presence and support its expansion initiatives. Brandman Retail intends to launch 15 new exclusive brand outlets and multi-brand outlets, significantly broadening its physical footprint. Additionally, the proceeds will be used to support working capital requirements for both new and existing stores, as well as to cover general corporate expenses, ensuring smooth operations and sustained growth.
Key Players and Grey Market Premium
Gretex Corporate Services Ltd serves as the book running lead manager for the IPO, while Bigshare Services Pvt. Ltd acts as the registrar for the issue. The Market Makers include Gretex Sharebroking Pvt. Ltd and Shree Bahubali Stock Broking Ltd, ensuring liquidity and market stability post-listing.
The Brandman Retail IPO GMP today, or grey market premium, is reported at ₹15. Considering the upper end of the IPO price band and this premium, the estimated listing price of Brandman Retail shares is indicated at ₹191 apiece, which is 8.52% higher than the IPO price of ₹176. The grey market premium often reflects investors' readiness to pay more than the issue price, signaling positive market sentiment.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
