Patel Retail Shares Slip After Profit Booking

Patel Retail shares witnessed a slight dip of nearly 4% on Tuesday after making a strong stock market debut. The shares, initially priced at ₹300, dropped to ₹293.95 on the BSE. Despite this decline, the IPO had a remarkable subscription rate of 95.70 times, with funds earmarked for debt repayment and working capital requirements. On listing day, Patel Retail shares opened at ₹300, a 17.65% premium over the issue price of ₹255, and even touched ₹305 on the BSE, reflecting a gain of 19.61%.

Market experts suggest that for short-term investors, booking profits after such a robust debut is a practical strategy. However, long-term investors may prefer to hold onto their shares, given Patel Retail’s promising growth outlook. With its private labels, value-driven retail business model, and potential expansion in semi-urban markets, the company is seen as having strong prospects for sustained growth.