Brandman Retail IPO: Strong 114x Subscription Sets Stage for Debut

Introduction to Brandman Retail's Public Offering

Brandman Retail, a retailer specializing in international sports and lifestyle brands, is scheduled to make its stock market debut on the NSE SME platform on Wednesday, February 11, 2026. The company's ₹86.09 crore Initial Public Offering (IPO) received an exceptional response from investors, signaling strong market confidence. The issue, which was open for subscription from February 4 to February 6, 2026, consisted entirely of a fresh issue of 4.9 million equity shares. The significant oversubscription and positive sentiment in the grey market have set high expectations for its listing day performance.

Overwhelming Investor Demand and Subscription Figures

The IPO witnessed robust demand across all investor categories, achieving an overall subscription of 114.5 times. According to data from the National Stock Exchange (NSE), investors submitted bids for 372.5 million equity shares, far exceeding the 3.25 million shares available. The Non-Institutional Investors (NIIs) category led the bidding, with its allocated portion being subscribed 203 times. Qualified Institutional Buyers (QIBs) and retail investors also showed significant interest, subscribing to their respective quotas by 85.24 times and 93.12 times. This widespread participation underscores the high level of investor interest in the company's business model and growth prospects.

Grey Market Premium Indicates a Positive Listing

Ahead of its official listing, shares of Brandman Retail are commanding a premium in the grey market. The unlisted shares were trading at approximately ₹191 each, indicating a Grey Market Premium (GMP) of ₹15 over the upper end of the IPO price band of ₹176. This translates to a potential listing gain of around 8.5 percent. While the GMP is an informal indicator of market sentiment and not a guaranteed listing price, it suggests that the stock could open on a positive note. Analysts advise investors to consider that the actual listing price is subject to market conditions on the debut day.

IPO Structure and Key Details

The public issue was structured as a book-built offer with a price band set at ₹167 to ₹176 per equity share. The IPO size was ₹86.09 crore, comprising a fresh issue of 4,891,200 equity shares. The lot size for the IPO was fixed at 800 shares, requiring a minimum investment of ₹140,800 for retail investors at the upper price band. The allotment of shares was finalized on Monday, February 9, 2026. Gretex Corporate Services served as the sole book-running lead manager for the issue, with Bigshare Services acting as the registrar.

Utilization of IPO Proceeds

Brandman Retail has outlined a clear strategy for the deployment of the net proceeds from the IPO. According to its Red Herring Prospectus (RHP), the company plans to allocate a significant portion of the funds towards its expansion plans. A sum of ₹27.90 crore is earmarked for funding capital expenditure to expand its retail network by opening 15 new Exclusive Brand Outlets (EBOs) and Multi-Brand Outlets (MBOs). Additionally, ₹11.78 crore will be used for the working capital requirements of these new stores, while ₹26.72 crore will support the working capital needs of its existing outlets. The remaining funds will be utilized for general corporate purposes.

Company Profile and Business Operations

Incorporated in 2021, Brandman Retail operates as a distributor and retailer for globally recognized sports and athleisure brands. The company employs a multi-channel retail strategy that includes EBOs, MBOs, e-commerce platforms, and a direct-to-consumer website. Its brand portfolio features names like New Balance, On, Salomon, and Anta, managed through non-exclusive distribution agreements. The company has a presence across nine cities in India, with Delhi being its largest revenue-generating region. The business is managed by its promoters, Arun Malhotra, Kavya Malhotra, and Kashika Malhotra.

Financial Performance Overview

The company has demonstrated strong financial growth in recent fiscal years. Its revenue and profitability have shown a positive trend, which likely contributed to the strong investor response to the IPO.

Market Outlook and Conclusion

The successful IPO of Brandman Retail highlights the continued investor appetite for promising companies in the SME segment. The overwhelming subscription and positive grey market sentiment point towards a potentially strong debut on the stock exchange. With a clear growth strategy funded by the IPO proceeds, the company is positioned to expand its footprint in India's growing retail market for sports and lifestyle goods. Investors will be closely watching its listing on February 11, 2026, to see if the market performance aligns with the pre-listing expectations.