Vishal Mega Mart on Thursday submitted its updated draft papers to Sebi , seeking to raise 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). As a result , the company will not receive any funds from the issue, and the proceeds will go to the selling shareholder, which holds a 96.55 per cent stake in the Gurugram-based supermart major.
The updated draft filing follows the approval of Vishal Mega Mart's confidential offer document by the market regulator on September 25.
The company initially filed its offer document in July through the confidential pre-filing route, under which the market watchdog reviews the confidential DRHP and provides comments on it.
The company going public then files an update to the confidential DRHP (UDRHP-I) after incorporating the regulator's comments, which is made available for public comments. Finally, after incorporating changes based on public comments, the company updates the DRHP-II (UDRHP-II).
Vishal Mega Mart caters to middle- and lower-middle-income consumers in India, offering a wide range of products, including both in-house and third-party brands, across three key categories: apparel, general merchandise, and fast-moving consumer goods (FMCG). As of June 30, 2024, the company operates 626 Vishal Mega Mart stores across India, along with a mobile app and website.
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, according to a Redseer report.
The shift towards organised retail is driven by factors such as 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 for the issue.
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). As a result , the company will not receive any funds from the issue, and the proceeds will go to the selling shareholder, which holds a 96.55 per cent stake in the Gurugram-based supermart major.
The updated draft filing follows the approval of Vishal Mega Mart's confidential offer document by the market regulator on September 25.
The company initially filed its offer document in July through the confidential pre-filing route, under which the market watchdog reviews the confidential DRHP and provides comments on it.
The company going public then files an update to the confidential DRHP (UDRHP-I) after incorporating the regulator's comments, which is made available for public comments. Finally, after incorporating changes based on public comments, the company updates the DRHP-II (UDRHP-II).
Vishal Mega Mart caters to middle- and lower-middle-income consumers in India, offering a wide range of products, including both in-house and third-party brands, across three key categories: apparel, general merchandise, and fast-moving consumer goods (FMCG). As of June 30, 2024, the company operates 626 Vishal Mega Mart stores across India, along with a mobile app and website.
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, according to a Redseer report.
The shift towards organised retail is driven by factors such as 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 for the issue.
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