Vishal Mega Mart to raise ₹8,000 cr via IPO; issue to open on Dec 11

The highly anticipated initial public offering (IPO) of supermarket chain operator Vishal Mega Mart will open for subscription on December 11, 2024. The Gurgaon-headquartered company looks to raise around ₹8,000 crore via IPO route at a price band of ₹74-78 per share. At the upper price band of ₹78, the company's market capitalisation is estimated to be around ₹36,120 crore.

The anchor book will open for a day on December 10, while the there-day IPO will close on December 13, according to the Red Herring Prospectus (RHP) shared on Thursday. The tentative date for listing of shares on the BSE and NSE is December 18.   

The issue is entirely an offer-for-sale (OFS) of shares by promoter Samayat Services LLP, which holds 96.55% stake in the supermart company. There will be no fresh issue of equity shares, which means the company will not receive any fund from the IPO proceeds.

Vishal Mega Mart filed its IPO document with the capital market regulator SEBI in July this year through the confidential pre-filing route. The company submitted its updated draft filing in October, which was approved by the SEBI on September 25, 2024.

As per the RHP filed with the SEBI, Vishal Mega Mart offers products across 3 major product categories, i.e., apparel, general merchandise and fast-moving consumer goods, through a pan-India network of 626 stores and mobile application and website, as of June 30, 2024. They are the fastest-growing leading offline-first diversified retailers in India, based on profit after tax growth between FY2021 and 2024, and among the 2 leading offline-first diversified retailers in India in terms of same-store sales growth for financial year 2024, as per the IPO document. Also, they were ranked among the 3 leading offline-first diversified retailers in India, based on retail space as of March 31, 2024

On the financial front, Vishal Mega Mart reported a total income of ₹5,053.41 crore in H1 FY25, up 19.3% from ₹4,235.44 crore in the same period last year. Net profit grew 30% to ₹254.14 crore from ₹195.36 crore in the corresponding period last year.

Kotak Mahindra Capital, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India are acting as lead managers for the IPO.

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