Vishal Mega Mart Rs 8,000-crore IPO: Institutional investors pick Rs 2,400 crore worth shares via anchor book

Vishal Mega Mart IPO

Kedaara Capital-backed hypermarket chain Vishal Mega Mart has raised Rs 2,400 crore from several global and domestic institutional investors via anchor book on December 10. The issue will open for public subscription on December 11 and close on December 13.

The company targets to raise Rs 8,000 crore via the initial share sale, which comprises entirely an offer-for-sale of 102.56 crore equity shares by promoter Samayat Services LLP. The price band for the offer has been fixed at Rs 74-78 per share.

The Gurugram-based firm in its filing to exchanges on Tuesday said it has finalised allocation of 30.76 crore equity shares to anchor investors at Rs 78 per share.

Marquee global institutional investors participated in the anchor book included Government of Singapore, Monetary Authority of Singapore, JP Morgan, Custody Bank of Japan, Nomura, Blackrock, Government Pension Fund Global, Schroder International Selection Fund, HSBC Global, TIMF Holdings, CLSA Global, and Prudential Hong Kong.

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Domestic institutional investors like SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mahindra AMC, Nippon Life India, Axis Mutual Fund, Aditya Birla Sun Life Trustee, Franklin, Mirae Asset, HDFC Life Insurance, SBI Life Insurance, Canara Robeco MF, Invesco, Tata MF, Max Life Insurance, Bajaj Holdings, UTI MF, Bajaj Allianz General Insurance, Baroda BNP Paribas MF, and Kotak Mahindra Life Insurance also received shares in the anchor book allotment.

"Out of the total allocation of 30.76 crore equity shares to the anchor investors, 16.41 equity shares were allocated to 18 domestic mutual funds, which applied through a total of 44 schemes," the company said in its filing to exchanges on Tuesday.

The company that targets middle and lower middle-income households offers products under three major categories (apparel, general merchandise and fast-moving consumer goods) through its pan-India network of 645 Vishal Mega Mart stores, mobile application and website.

The company will not receive any money from the public issue. The IPO funds, excluding offer expenses, will be received by the promoter.

Promoter Samayat Services LLP holds 96.46 percent stake in the company that competes with listed peers like Avenue Supermarts, and Trent.

Investors can start trading in Vishal Mega Mart shares on the bourses, effective December 18. Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India Company are handling the public issue.