Kedaara Capital and Partners Group-owned supermarket chain Vishal Mega Mart is planning to launch its Rs 8,000-crore initial public offering (IPO) by the middle of December, people aware of the development have told Moneycontrol.
India's biggest private equity-backed IPO of 2024 and the fourth-biggest share sale of the year was planned for November-end but the company moved it to the middle of next month, the sources said.
“The recent corrections in the stock markets have pushed the timelines a little but there is a strong interest from investors for the deal given the long-term consumption growth story of India,” one of the sources cited above said.
Vishal Mega Mart is engaging with foreign institutional investors on roadshows in places such as London and Singapore to garner investor interest, the sources said.
An email sent to Vishal Mega Mart had not elicited a response till the time of publication.
The IPO
The IPO consists of a secondary sale of shares by the holding company — Samayat Services LLP — and the supermarket chain does not intend to raise fresh capital.
Samyat Services holds a 96.55 percent stake in the company, while CEO Gunendar Kapur holds 2.45 percent, the draft red herring prospectus says.
Investment banks Kotak Mahindra Capital, ICICI Securities, Jefferies, JP Morgan and Morgan Stanley are advising the company on the IPO.
Vishal Mega Mart offers products across three major categories — apparel, general merchandise and fast-moving consumer goods, through 626 Vishal Mega Mart stores (as of June 30, 2024) and Vishal Mega Mart mobile application and website.
In the financial year 2023-24, the company reported revenue of Rs 8,911.9 crore against Rs 7,586 crore in the previous fiscal. Its profit increased to Rs 461.93 crore from Rs 321.27 crore.
Vishal Mega Mart has a strong focus on its brands across apparel, FMCG and other categories.
In FY24, 19 of its brands recorded sales exceeding Rs 100 crore each, with six exceeding Rs 500 crore each.
Vishal’s brands constituted 74.09 percent of its revenue as of June 30. Revenue from operations from sales of own brands has grown at a CAGR of 27.72 percent between financial years 2022 and 2024.
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