Hyderabad-based apparel & jewellery retailer Marri Retail files DRHP with SEBI to raise funds via IPO

Hyderabad-based Marri Retail has filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI), seeking to raise funds through an initial public offering (IPO) that combines fresh capital with a promoter stake sale.

The proposed IPO, with a face value of Rs 2 per share, comprises a fresh issue of equity shares aggregating up to Rs 522 crore and an offer for sale of 2.7 crore equity shares by promoter Marri Venkat Reddy.

The company has also indicated that it may undertake a pre-IPO placement of up to Rs 104.4 crore. If completed, this would proportionately reduce the size of the fresh issue.

Proceeds from the fresh issue will be used primarily to strengthen the balance sheet and fund expansion. Of the total amount, Rs 115.6 crore has been earmarked for repayment or prepayment of borrowings.

Another Rs 250.5 crore will be deployed towards capital expenditure for opening new stores, including 10 new apparel stores, one new apparel store with an integrated jewellery section, and two standalone jewellery stores. A further Rs 35.8 crore will be used towards lease and sub-lease rental payments for certain existing stores and warehouses. The remaining funds will be allocated to general corporate purposes.

The issue will be offered through the book-building route, with up to 50% of the net offer reserved for qualified institutional buyers, up to 15% for non-institutional investors, and up to 35% for retail investors.

Founded in 1999 as an apparel retailer under the brand Jeans Corner, Marri Retail entered the large-format retail segment in 2013 with the launch of its first mall under The Chennai Shopping Mall brand in Hyderabad. Over the years, the company has expanded into a multi-brand, multi-format retailer spanning both apparel and jewellery.

As of September 2025, Marri Retail operated 34 stores with an aggregate retail area of about 0.98 million square feet across 26 districts in Telangana, Andhra Pradesh, Karnataka and Maharashtra. Its portfolio includes apparel brands such as The Chennai Shopping Mall, JC Mall, JC Brothers and Jeans Corner, along with The Chennai Shopping Mall Jewellers in the jewellery segment. The company positions itself across premium, mid-premium and value price points, targeting family shoppers through a wide product range.

Marri Retail said its business model is supported by a diversified product mix, a technology-enabled supply chain, and targeted marketing strategies, which it believes position it to benefit from the growing shift toward organised retail in its core markets. As of the end of September 2025, the company offered 522 apparel articles, including 129 private-label products, and 259 jewellery articles, positioning its stores as one-stop destinations aimed at driving repeat footfalls.

On the financial front, Marri Retail reported revenue from operations of Rs 1,301 crore and a net profit of Rs 83 crore during the six months ended September 2025. For the full year FY25, its revenue stood at Rs 2,456 crore.

Mumbai-based Four Bridge Capital assisted Marri Retail with IPO preparation and the DRHP filing process. The book-running lead managers for the issue are Nuvama Wealth Management, IIFL Capital Services, and Motilal Oswal Investment Advisors.