NEW DELHI, Dec 5: Vishal Mega Mart, a leading supermart, is preparing to initiate its ₹8,000 crore initial public offering (IPO) on December 11 for public subscription.
The IPO will run until December 13, with a one-day bidding window for anchor investors opening on December 10, as indicated in the Red Herring Prospectus (RHP) released Thursday.
This IPO consists entirely of an Offer For Sale (OFS) of shares by the promoter, Samayat Services LLP, with no new equity shares being issued, as per the Updated Draft Red Herring Prospectus (UDRHP).
Currently, Samayat Services LLP owns a 96.55% stake in the Gurugram-based supermart.
Since this IPO is solely an OFS, Vishal Mega Mart will not receive any funds from the offering; proceeds will go directly to the selling shareholder.
The updated draft was submitted in October following the approval of Vishal Mega Mart’s confidential offer document by SEBI on September 25. The company initially filed for this in July using a confidential pre-filing approach.
During the confidential filing process, SEBI reviews the confidential offer document and provides feedback.
After addressing the regulator’s comments, the company is required to submit an update (UDRHP-I) which is then open for public comment for a 21-day period.
Upon incorporating changes based on public feedback, the company must submit a further updated version (UDRHP-II).
Vishal Mega Mart serves as a one-stop shopping destination for middle and lower-middle-income consumers across India.
The product range includes both in-house and third-party brands, spanning three key categories: apparel, general merchandise, and fast-moving consumer goods (FMCG).
As of June 30, 2024, Vishal Mega Mart operates 626 stores throughout India, complemented by a mobile app and website.
According to a report by Redseer, India’s aspiring retail market was valued between ₹68-72 trillion in 2023 and is predicted to reach ₹104-112 trillion by 2028, reflecting a compound annual growth rate (CAGR) of 9%. The trend towards organized retail is fueled by increased quality expectations, a broader range of products, competitive pricing (particularly in FMCG), urbanization, and growth opportunities for organized players.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India Company are acting as the book-running lead managers for this issue. (PTI)
