Supermart giant Vishal Mega Mart will launch its first sale of Rs 8,000 crore on December 11 for public subscription.
The Initial Public Offering (IPO) will be completed on December 13 and bidding for strong investors will be open for one day on December 10, the Red Herring Prospectus (RHP) showed on Thursday.
The proposed IPO is entirely an Offer For Sale (OFS) of promoter shares of Samayat Services LLP, with no fresh issue of equity shares, according to the Updated Draft Red Herring Prospectus (UDRHP).
Currently, Samayat Services LLP owns 96.55 percent of the Gurugram-based supermarket.
Since the IPO is completely OFS, the company will not receive any money from the issue and the profit will go to the selling shareholder.
The revised draft filing was filed in October after Vishal Mega Mart’s confidential filing was approved by Sebi on September 25. The company filed the offer document in July through the confidential pre-filing route.
Under the privacy filing process, Sebi reviews the privacy and provides comments on it.
After that, the company that will go public is required to file an update to the private HP (UDRHP-I) after incorporating the regulator’s comments. The UPDRHP-I is made available for public comment within 21 days.
Finally, after making changes due to public comments, the company is required to revise the HP-II (UDRHP-II).
Vishal Mega Mart is a one-stop destination catering to middle and lower income consumers in India.
The product range includes both in-house and third-party brands, covering three key segments — apparel, general merchandise, and fast-moving consumer goods (FMCG).
As of June 30, 2024, it operates 626 Vishal Mega Mart stores across India, as well as a mobile app and website.
According to a Redseer report, the Indian retail market was worth Rs 68-72 trillion by 2023 and is expected to reach Rs 104-112 trillion by 2028, growing at a CAGR of 9 percent. The shift to organized retail is driven by higher quality expectations, wider product variety, better prices (especially in FMCG), urbanization, and opportunities for organized players to grow.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India. JP Morgan India, Morgan Stanley India Company are the lead book-runners for the issue.
