The highly anticipated Rs 8,000-crore initial public offering (IPO) of Vishal Mega Mart is set to open for public subscription on December 11, 2024. The bidding for anchor investors will commence a day earlier, on December 10, as per the Red Herring Prospectus (RHP) disclosed on Thursday.
Key highlights of the IPO:
- Offer Structure: The IPO is entirely an Offer For Sale (OFS), with no fresh equity issuance. Promoter Samayat Services LLP will divest a portion of its 96.55% stake in the Gurugram-based retail chain.
- Proceeds: Since it is an OFS, the company itself will not receive any funds from the offering. All proceeds will go to the selling shareholder, Samayat Services LLP.
- Regulatory Approvals: Vishal Mega Mart filed its confidential Draft Red Herring Prospectus (DRHP) in July 2024, which was approved by SEBI on September 25. The updated DRHP (UDRHP) was filed in October after incorporating regulatory feedback and was made available for public comments for 21 days.
- Business Model: Vishal Mega Mart is a retail chain catering to middle and lower-middle-income consumers. Its product categories include apparel, general merchandise, and FMCG, offering both in-house and third-party brands.
- Presence: As of June 30, 2024, the company operates 626 stores across India, along with a robust mobile app and website.
- Industry Overview: India’s aspirational retail market was valued at Rs 68-72 trillion in 2023 and is projected to grow at a CAGR of 9% to reach Rs 104-112 trillion by 2028, according to a Redseer report. Factors like urbanization, organized retail penetration, and better product quality are driving growth.
Lead Managers:
The IPO is managed by Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India Company.
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