SS Retail shares rally one other 6% after bumper itemizing at 51% premium over IPO value. Purchase, promote or maintain?
On Wednesday, SS Retail shares debuted at Rs 639.10 on the BSE, marking a 50.73% premium to the problem value. On the NSE, the inventory listed at Rs 624, translating right into a 47.17% premium over the IPO value.
The itemizing surpassed unlisted market expectations, which had urged a debut achieve of as much as 35%. The inventory was seen commanding a gray market premium (GMP) of round 35% forward of the itemizing.
What ought to traders do?
Shivani Nyati, Head of Analysis at Swastika Investmart, mentioned SS Retail made a robust debut, supported by sturdy ROE/ROCE and its asset-light COFO mannequin. Nonetheless, at round 46.5x FY26 P/E, valuations seem demanding, whereas its larger publicity to lower-margin cell {hardware} limits direct comparability with friends. “Given the sturdy itemizing and restricted margin of security at present valuations, our post-listing view is Impartial. Buyers can look forward to some consolidation earlier than taking recent positions, whereas present traders might take into account holding with a stop-loss of Rs 575–585,” she added.
The IPO opened for subscription on September 16 and closed on September 18, receiving an amazing general subscription of 103.30 occasions. The certified institutional consumers (QIBs) portion was subscribed 203.61 occasions, whereas the non-institutional traders (NIIs) portion noticed 143.32 occasions subscription. The retail portion was subscribed 36.36 occasions.
SS Retail Ltd. recorded a 47% enhance in complete earnings, rising from Rs 1,600 crore in FY25 to Rs 2,353 crore in FY26, reflecting sturdy year-on-year progress.
The corporate’s revenue after tax (PAT) elevated by 49%, from Rs 40 crore in FY25 to Rs 59 crore in FY26, indicating improved profitability throughout the 12 months.The Firm proposes to utilise the Internet Proceeds of the Subject in direction of funding capital expenditure for fit-outs of latest shops deliberate for FY2027 and FY2028, with an estimated allocation of Rs 12.45 crore.
The Firm additionally intends to make use of Rs 241.35 crore in direction of part-funding its incremental working capital necessities, with the steadiness proceeds allotted in direction of Basic Company Functions. The whole estimated utilisation of the Internet Proceeds is Rs 253.80 crore.
About SS Retail
Included in June 2016, SS Retail Ltd. is a multi-brand retail chain providing cell phones, equipment and client electronics throughout Maharashtra, Karnataka, Madhya Pradesh, Goa and Gujarat. The Firm primarily targets Tier II, Tier III and smaller cities.
As of March 31, 2026, it operated 503 shops throughout 215 cities, protecting roughly 2,41,365 sq. ft., underneath its manufacturers SS Cell, Cell Change Wala and The Cell House. The community expanded to 536 shops protecting 2,60,597 sq. ft. as of July 31, 2026.
Disclaimer: This text has been written by Veer Sharma, who just isn’t a SEBI-registered Analysis Analyst or an Funding Adviser. Veer Sharma and his/her ‘relative(s)’ (as outlined underneath Part 2(77) of the Firms Act, 2013) don’t maintain any monetary curiosity within the corporations talked about on this article as of the date of publication. The views/suggestions talked about on this article, wherever relevant, are these of the respective SEBI-registered Analysis Analyst/brokerage and have been reproduced/reported with due attribution. They shouldn’t be construed because the views or suggestions of The Financial Instances Digital or the journalist. Readers are suggested to contemplate the unique analysis report and make their funding choices based mostly on their very own evaluation. Brokerage disclaimers right here.
