Kedaara promoted Vishal Mega Mart files updated IPO papers with Sebi

Kedaara promoted supermart major Vishal Mega Mart filed its updated draft papers with capital markets regulator SEBI for an initial public offering (IPO) of equity shares of face value of Rs. 10 each aggregating up to Rs. 8,000-crore through an Offer for Sale (OFS) by promoter Samayat Services LLP.

At present, Samayat Services LLP holds 96.55 per cent stake in the Gurugram-based supermart major.

The updated draft filing (UDRHP I) comes after Vishal Mega Mart’s confidential offer document was approved by Sebi on September 25, 2024. The company filed its offer document in July through the confidential pre-filing route.  Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

Vishal Mega Mart is a one-stop destination catering to middle- and lower-middle-income consumers in India. The product range includes both in-house and third-party brands, covering three key categories — apparel, general merchandise, and fast-moving consumer goods (FMCG).  As of June 30, 2024, it operates 626 Vishal Mega Mart stores across India, along with a mobile app and website.

Vishal Mega Mart was ranked among the three leading offline-first diversified retailers in India, based on retail space as of March 31, 2024 (Source: RedSeer Report). It is also the fastest-growing leading offline-first diversified retailers in India, based on profit after tax growth between Financial Years 2021 and 2024, and among the two leading offline-first diversified retailers in India in terms of same-store sales growth for Financial Year 2024 (Source: RedSeer Report).

According to Redseer report, 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. The shift towards organised retail is driven by 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 to the issue.