Hyderabad-based Marri Retail Limited has filed its Draft Red Herring Prospectus (DRHP) with market regulator the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The proposed IPO, with a face value of Rs. 2 per equity share, will comprise a fresh issue of shares aggregating up to Rs. 522 crore (US $ 57.85 million), along with an offer for sale (OFS) of 2.7 crore equity shares by promoter Marri Venkat Reddy.
The company said proceeds from the fresh issue will be used primarily to reduce debt and support expansion plans. This includes repayment or prepayment of borrowings amounting to Rs. 115.6 crore (US $ 12.81 million) and capital expenditure of Rs. 250.5 crore (US $ 27.76 million) for store expansion. The expansion programme covers the addition of 10 new apparel stores, one apparel store with an integrated jewellery format, and two standalone jewellery stores. A further Rs. 35.8 crore (US $ 3.96 million) will be deployed towards lease-related payments and general corporate purposes.
Marri Retail has also proposed a pre-IPO placement of up to Rs. 104.4 crore (US $ 11.57 million). If executed, the size of the fresh issue will be reduced proportionately.
The company operates in the apparel and jewellery retail segments through brands including The Chennai Shopping Mall, JC Mall, J.C. Brothers, Jeans Corner, and The Chennai Shopping Mall Jewellers. As of the date of the DRHP, it operated 34 stores with a cumulative retail area of nearly 0.98 million sq.ft. across Telangana, Andhra Pradesh, Karnataka and Maharashtra.
On the financial front, Marri Retail reported revenue of Rs. 1,301.4 crore (US $ 144 million) and a net profit of Rs. 83.5 crore (US $ 9.25 million) for the six months ended 30th September 2025. Revenue from operations stood at Rs. 2,456.3 crore (US $ 272 million) in FY ’25, compared with Rs. 1,900.8 crore (US $ 210 million) in FY ’23, reflecting steady growth over the period.
Nuvama Wealth Management, IIFL Capital Services and Motilal Oswal Investment Advisors have been appointed as the book-running lead managers for the issue. The company proposes to list its equity shares on both the BSE and the NSE.
Marri Retail’s apparel portfolio is anchored around value-focused ethnic and casual wear, catering largely to family and occasion-based consumption. Its apparel offerings span men’s, women’s and children’s categories, with a strong presence in wedding, festive and everyday fashion through its flagship The Chennai Shopping Mall format, which remains a key growth driver for the company.
