Vishal Mega Mart to float Rs 8,000 crore IPO on December 11

New Delhi: Supermart major Vishal Mega Mart is set to launch its Rs 8,000 crore initial share-sale on December 11 for public subscription.

The Initial Public Offering (IPO) will conclude on December 13 and the bidding for anchor investors will open for a day on December 10, the Red Herring Prospectus (RHP) showed on Thursday.

The proposed IPO is entirely an Offer For Sale (OFS) of shares by promoter Samayat Services LLP, with no fresh issue of equity shares, according to the Updated Draft Red Herring Prospectus (UDRHP).

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 is a one-stop destination catering to middle and lower-middle-income consumers in India.

The 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), urbanisation, and opportunities for organised players to grow.

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