The proposed IPO will be 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)
New Delhi: Supermart major Vishal Mega Mart on Thursday filed its updated draft papers with capital markets regulator Sebi to float Rs 8,000 crore through an initial public offering (IPO).
The proposed IPO will be 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 a 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 comes 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 was made available for public comment.
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 (compound annual growth rate) of 9 per cent. The shift towards organised 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, J.P. Morgan India and Morgan Stanley India Company are the book-running lead managers to the issue.
