Vishal Mega Mart IPO, backed by Kedaara, opens next week at Rs 74-78/share

New Delhi, Dec 6 (PTI) Kedaara Capital-backed Vishal Mega Mart on Friday said it has fixed a price band of Rs 74-78 per equity share for its Rs 8,000 crore initial share sale, which will hit the capital markets on December 11.

The Initial Public Offering (IPO) will conclude on December 13. The bidding for anchor investors will open for a day on December 10, the Red Herring Prospectus (RHP) showed.

The proposed IPO is entirely an Offer For Sale (OFS) of shares by promoter Kedaara Capital-led Samayat Services LLP, with no fresh issue component, according to the Updated Draft Red Herring Prospectus (UDRHP).

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

Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholder.

The updated draft filing was filed in October after Vishal Mega Mart's confidential offer document was approved by Sebi on September 25. The company filed its offer document in July through the confidential pre-filing route.

Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it.

Thereafter, the company going public is required to file an update to the confidential DRHP (UDRHP-I) after incorporating the regulator's comments. This UPDRHP-I is made available for public comments over 21 days.

Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

Vishal Mega Mart (VMM) 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).

VMM is one of India's leading retail players, achieving Rs 8,900 crore in revenues in FY24. The company has 645 stores with 11.5 million retail square feet across 414 cities in 30 states and union territories.

It offers a diversified merchandise mix, with apparel contributing 45 per cent of sales, general merchandise adding 28 per cent, and FMCG (27 per cent).

Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India are the book-running lead managers to the issue. KFin Technologies is the registrar for the IPO.

The company’s shares are proposed to be listed on the BSE and the National Stock Exchange (NSE). PTI