Palghar, Jan 27 (PTI) Rice marketer, RG Brothers, is seeking Rs 10 crore in seed funding to accelerate growth and scale up its turnover to Rs 80 to 100 crore by FY 2026-27 as part of a roadmap toward a proposed
SME IPO in early FY 28.
The proposed seed funding will be used to expand branded and institutional distribution, strengthen working capital, build brand visibility, and invest in systems, audits and compliance aligned with SME IPO norms.
The company operates across pan-India branded rice sales, institutional supplies and exports. It follows an asset-light model, procuring rice from millers nationwide while outsourcing processing and packaging to partner units in key rice-producing regions, enabling scalability with limited capital expenditure.
As part of its IPO-readiness strategy, a private limited company is being incorporated. However, the firm will adopt a hybrid operating structure rather than immediately transitioning all operations, the release said.
The proprietary entity will continue bulk procurement from millers, while a portion of the rice will be billed to the new private limited company, which will exclusively handle branded rice distribution under company-owned SKUs.
The private limited entity will serve as the IPO vehicle once regulatory and governance thresholds are met.
Founded by D S Manchanda, RG Brothers has recorded rapid growth, with revenues rising from Rs 30 lakh in FY 2021 to over Rs 15 crore by FY 2025, according to a release issued by the firm.
Financially, RG Brothers reported an EBITDA of Rs 81 lakh in FY 2024–25 and expects EBITDA to exceed Rs 1 crore annually in FY 2025–26 and FY 2026–27, supported by gross margins of 17–18 per cent, the release said.
“Our goal is to build scale with structure while balancing agility and investor confidence,” Manchanda said.
Post-IPO, the company plans to expand institutional partnerships, deepen exports and eventually migrate from the SME platform to the main board. PTI COR NSK
