Vishal Mega Mart collects Rs 2.4K cr from anchor investors; IPO opens for subscription

New Delhi: Supermarket chain Vishal Mega Mart has mobilised Rs 2,400 crore from anchor investors, an update with the exchange showed.

Those who were allotted shares in the anchor round included SBI Mutual Fund, Government of Singapore, Nomura Funds Ireland Public Ltd, Axis Mutual Fund (MF), HDFC MF and ICICI Prudential MF, according to a circular uploaded on BSE's website.

Overall, a total of 18 domestic mutual funds participated through 44 schemes, collectively accounting for 53.33 per cent of the anchor portion.

As per the circular, Vishal Mega Mart has allotted 30.76 crore equity shares to 89 funds at Rs 78 apiece, which is also the upper-end of the price band. This takes the transaction size to Rs 2,400 crore.

The Rs 8,000-crore initial public offering (IPO) of Vishal Mega Mart opens for subscription on December 11 and will conclude on December 13. Shares are available in the price range of Rs 74 to Rs 78 apiece.

The proposed IPO is entirely an offer-for-sale (OFS) of shares by promoter Kedaara Capital-led Samayat Services LLP, Samayat Services LLP, with no fresh issue of equity shares.

At present, Samayat Services LLP holds 96.55 per cent stake in the Gurugram-based supermart major.

Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholder.

The updated draft filing was filed in October after Vishal Mega Mart's confidential offer document was approved by Sebi on September 25. The company filed its offer document in July through the confidential pre-filing route.

Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it. Thereafter, the company going public is required to file an update to the confidential DRHP (UDRHP-I) after incorporating the regulator's comments. This UPDRHP-I is made available for public comments over 21 days.

Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

Vishal Mega Mart's product range includes both in-house and third-party brands, covering three key categories -- apparel, general merchandise, and fast-moving consumer goods (FMCG). As of June 30, 2024, it operates 626 Vishal Mega Mart stores across India, along with a mobile app and website.

According to the Redseer report, India's aspirational retail market was valued at Rs 68-72 trillion in 2023 and is projected to reach Rs 104-112 trillion by 2028, growing at a CAGR of 9 per cent. The shift towards organized retail is driven by higher quality expectations, wider product assortments, better pricing (especially in FMCG), urbanization, and opportunities for organized players to grow.

Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India. J.P. Morgan India, Morgan Stanley India Company are the book-running lead managers for the issue.