New Delhi, Dec 11: Vishal Mega Mart, the supermarket chain, has successfully raised Rs 2,400 crore from anchor investors, as indicated in an update shared with the exchange.
Among the entities that received shares during the anchor round are SBI Mutual Fund, the Government of Singapore, Nomura Funds Ireland Public Ltd, Axis Mutual Fund (MF), HDFC MF, and ICICI Prudential MF, according to a circular on the BSE’s website.
In total, 18 domestic mutual funds participated across 44 schemes, cumulatively holding 53.33 percent of the anchor segment.
As per the circular, Vishal Mega Mart has allocated 30.76 crore equity shares to 89 funds at a price of Rs 78 each, which is on the upper end of the price spectrum. This results in a transaction volume of Rs 2,400 crore.
The initial public offering (IPO) of Vishal Mega Mart, valued at Rs 8,000 crore, opened for subscription on December 11 and will close on December 13. Shares are offered within a price range of Rs 74 to Rs 78 each.
The IPO comprises an entirely offer-for-sale (OFS) of shares by Samayat Services LLP, led by promoter Kedaara Capital, without any new equity shares being issued.
Currently, Samayat Services LLP holds a 96.55 percent stake in the major Gurugram-based supermart.
Since the IPO consists entirely of an OFS, the company will not receive any proceeds from the offering, which will instead benefit the selling shareholder.
The updated draft filing, which incorporated comments from Sebi after their approval of Vishal Mega Mart’s confidential offer document on September 25, was submitted in October. The company had initially filed the offer document in July using the confidential pre-filing route.
In the process of confidential filing, Sebi reviews the confidential Draft Red Herring Prospectus (DRHP) and offers feedback. The company must then submit an update to the confidential DRHP (UDRHP-I) after incorporating these comments. This UDRHP-I is available for public feedback for 21 days.
Finally, following public comments, the company is required to revise and submit DRHP-II (UDRHP-II).
Vishal Mega Mart’s offerings encompass both proprietary and third-party brands, spanning three primary categories—apparel, general merchandise, and fast-moving consumer goods (FMCG). As of June 30, 2024, the company operates 626 Vishal Mega Mart stores throughout India, in addition to providing a mobile application and website.
According to a report by Redseer, India’s aspirational retail market was estimated to be worth Rs 68-72 trillion in 2023, with a projection of reaching Rs 104-112 trillion by 2028, growing at a compound annual growth rate (CAGR) of 9 percent. The transition towards organized retail is propelled by rising quality expectations, broader product assortments, improved pricing (particularly in FMCG), urbanization, and opportunities for organized players to expand.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, J.P. Morgan India, and Morgan Stanley India Company serve as the book-running lead managers for the issue. (Agencies)
