RSB Retail India, the leading multi-format retailer in South India and the parent of brands R.S. Brothers and South India Shopping Mall, has filed its DRHP with the Securities and Exchange Board of India (SEBI). The company plans to raise capital through an IPO and a significant offer-for-sale (OFS) from its promoters and promoter group, making it one of the most awaited retail IPOs of the year.
RSB Retail India IPO Details
The issue will consist of:
- Fresh Issue: Equity shares up to INR 500 crore.
- Offer for Sale (OFS): 2.99 crore equity shares from promoters and promoter group, including Potti Venkateswarlu, Seerna Rajamouli, Tiruveedhula Prasada Rao etc.
Lead managers for the issue are Motilal Oswal Investment Advisors, HDFC Bank and IIFL Capital Services, and KFin Technologies is the registrar.
Use of IPO Proceeds
From the fresh issue proceeds, RSB Retail India will use:
- INR 275 crore for repayment/prepayment of certain loans.
- INR 118.18 crore for setting up 14 new stores under its flagship formats.
- The rest is for general corporate purposes.
This expansion is core to RSB’s growth strategy, especially in Andhra Pradesh and Telangana where the brand has deep penetration and strong recall.
Journey of RSB Retail
Incorporated in 2008, RSB traces its origins to 1999, when the promoters opened the first R.S. Brothers store in Hyderabad. Over the years, the retailer evolved from an ethnic and casual wear specialist to a diversified, multi-format powerhouse. Today, its portfolio spans:
- Multi-brand family stores (R.S. Brothers, South India Shopping Mall)
- Exclusive ethnic wear outlets (Kanchipuram Narayani Silks, Dè Royal)
- Hypermarkets (ValueZone Hyper Mart)
As of March 31, 2025, RSB operates 73 stores across 22 cities in Andhra Pradesh, Telangana, and Karnataka, covering 1.85 million sq. ft. of retail space.
Financials at a Glance
RSB Retail India’s financials reflect steady topline growth with margin improvement:
| Metric | FY23 | FY24 | FY25 | CAGR (FY23–FY25) |
|---|---|---|---|---|
| Revenue from Operations | 2,126.72 | 2,457.99 | 2,693.94 | 12.55% |
| EBITDA | 219.29 | 266.11 | 373.83 | 30.56% |
| PAT | 67.82 | 61.67 | 104.42 | 24.08% |
Margins have improved meaningfully:
- EBITDA margin: 10.31% (FY23) → 13.88% (FY25)
- Gross margin: 32.55% → 37.59%
- ROE: 26.55% (FY23) → 25.83% (FY25)
Store & Product Mix: Balanced and Diversified
Revenue by Format (FY25):
- South India Shopping Mall: INR 1,840 crore (68.3%)
- R.S. Brothers: INR 570 crore (21.2%)
- ValueZone Hyper Mart: INR 185 crore (6.9%)
- Other formats contribute to the balance.
Revenue by Product (FY25):
- Women’s apparel: INR 1,459 crore (54.1%)
- Men’s apparel: INR 603 crore (22.4%)
- Kidswear: INR 480 crore (17.8%)
- FMCG/General Merchandise: INR 153 crore (5.7%)
Private label brands such as Adam Parker, Republican, SISMO, and Hosh are emerging as margin drivers—contributing 7.25% of apparel revenue in FY25, up from 3.75% in FY23.
Operational Strengths: Cluster Strategy & Supply Chain
RSB Retail India follows a cluster approach—opening multiple formats in close geographic proximity to maximise supply chain efficiency, brand recall, and customer footfall. Its central warehouse in Patancheruvu, Hyderabad, supports all apparel operations, with a fleet of 36 vehicles ensuring timely store replenishment.
Sourcing is fully outsourced to 107 job workers and 3,888 suppliers, with no single supplier accounting for over 10% of purchases—minimising vendor concentration risk.
Competitive Landscape & Risks
RSB is one of the few South Indian retailers with a presence across all major retail formats, competing with regional heavyweights like Pothys, Marri Retail (J.C. Brothers), and Sai Silk (Kalamandir), as well as national chains and e-commerce giants.
Risks include intense price competition, rapid shifts in consumer preferences, and the growing influence of online retail in Tier II/III markets.
Human Capital & Marketing Muscle
With 10,668 full-time employees, RSB’s operations are manpower-intensive. Employee benefits formed 13.1% of total expenses in FY25. Marketing spends are equally significant—INR 98.86 crore in FY25 (~3.9% of total expenses), with a mix of digital campaigns, in-store promotions, and seasonal mega-sales such as the “Super Aashadam kg sale.”
Final Words
The organised apparel market in India is projected to grow significantly, with women’s ethnic wear’s organised share expected to rise from 37% in FY24 to 45% by FY29. RSB’s deep regional dominance, expanding store footprint, growing private label share, and improving margins position it as a strong play on this shift.
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