Vishal Mega Mart files DRPH to raise Rs 8,000 cr via IPO
Mumbai: Gurugram-based Vishal Mega Mart has filed a draft red herring prospectus (DRHP) with SEBI to raise Rs 8,000 crore through an initial public offering (IPO), media reports said.
The IPO will be entirely an offer-for-sale by the promoter, Samayat Services LLP, with no fresh equity issuance. Promoters currently hold a 98.77% stake in the company, with Samayat Services LLP owning 96.55%, reported Moneycontrol.
Vishal Mega Mart, a key player in apparel, general merchandise, and fast-moving consumer goods (FMCG), operates 626 stores alongside its mobile app and website.
It competes with major retailers like Reliance Retail, Tata Group's Trent, and Avenue Supermarts. The company is among the top two offline-first diversified retailers in India, based on same-store sales growth.
The Rs 8,000-crore IPO is primarily aimed at listing the company's equity shares on stock exchanges, with proceeds going to the promoter, according to the report.
Vishal Mega Mart's financial performance has been strong, with net profit for FY24 rising 43.8% to Rs 461.9 crore, and revenue increasing by 17.5% to Rs 8,911.9 crore compared to the previous year, media reported.
EBITDA also grew by 22.3% year-on-year to Rs 1,248.6 crore, with margins improving to 14% in FY24 from 13.5% in FY23.
For the quarter ending June 2024, the company reported a net profit of Rs 150.1 crore on revenue of Rs 2,596.3 crore.
India’s retail market is projected to grow at a 9% CAGR, reaching Rs 104-112 lakh crore by 2028 from Rs 68-72 lakh crore in 2023. Apparel, staples, FMCG, and general merchandise contributed 50% of the market in 2023 and are expected to maintain that share until 2028, the report added.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India have been appointed as the lead managers for the IPO.
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