RG Brothers Sets Sights on IPO with Ambitious Growth Plan

RG Brothers, a rice marketer, seeks Rs 10 crore seed funding to grow its turnover to Rs 80-100 crore by FY 2026-27. The company plans to enhance distribution, brand visibility, and compliance, eventually aiming for an SME IPO. Founded by D S Manchanda, RG Brothers has seen significant financial growth and plans further expansion.

Rice marketer RG Brothers is on the hunt for Rs 10 crore in seed funding to fuel its ambitious growth plans. The company aims to elevate its turnover to between Rs 80 and 100 crore by the fiscal year 2026-27, setting the stage for a planned SME IPO in early fiscal year 2028.

The funding will see RG Brothers expand its branded and institutional distribution networks, bolster working capital, enhance brand visibility, and invest in systems, audits, and compliance in line with SME IPO requirements. The company currently operates a pan-India branded rice sales, institutional supplies, and exports business, maintaining an asset-light model that outsources processing and packaging.

In line with its IPO strategy, RG Brothers is incorporating a private limited company to serve as the future IPO vehicle. While the proprietary entity will continue bulk procurement, the new limited company will manage branded rice distribution, ensuring readiness for regulatory and governance standards. Founded by D S Manchanda, RG Brothers reported revenues soaring from Rs 30 lakh in FY 2021 to over Rs 15 crore by FY 2025, with strong EBITDA growth amid a focus on expanding institutional partnerships and exports post-IPO.

(With inputs from agencies.)