• IPO and expansion: The company is raising ₹500 crore with a price band of ₹403 to ₹424 (₹360 crore fresh issue) and plans to open over 120 stores annually, funded equally through IPO proceeds and internal accruals.
• Financial performance: SS Retail operates 536 stores with a 40% growth rate, 49% profit growth, an 11.2% same-store sales growth, and a revenue of ₹1.46 lakh per square foot.
• Margin profile: Current gross margin stands at 12.10% and EBITDA margin at 5.3%, with management projecting further margin gains through direct OEM sourcing, operational efficiencies, and higher contributions from pre-owned devices and accessories.
• Product strategy: Mobile phones will remain the core hero product, while consumer durables are avoided to maintain working capital efficiency of 45 to 46 days and a return on capital employed above 30%.
• Debt reduction: The company holds ₹160 crore in debt, consisting entirely of working capital borrowings, which will be paid down using the proceeds from the IPO.