Vishal Mega Mart, a budget-friendly supermarket chain, is gearing up for its debut on Dalal Street with plans to file its initial public offering (IPO), as reported by news agency Reuters.
The IPO is anticipated to be valued at Rs 8276 crore ($1 billion), which would place Vishal Mega Mart's overall value at Rs 41,382 crore ($5 billion). Sources familiar with the matter shared this information, indicating that a portion of the funds raised from the IPO will be allocated toward expanding the chain's stores.
Partners Group, based in Switzerland, and Kedaara Capital from India, who are the majority stakeholders in Vishal Mega Mart, are expected to sell some of their shares in the IPO. However, specific details regarding the ownership stakes of these private equity firms and the extent of their intended share sale remain undisclosed at this time.
Presently, Vishal Mega Mart operates 560 stores, predominantly in smaller cities, offering a diverse range of clothing and grocery items. Its competitors include Reliance, owned by Indian tycoon Mukesh Ambani, Tata Group's Trent, and Avenue Supermarts, a prominent grocery retailer.
Investment banks have been summoned to present proposals for the IPO this week, with plans to execute the offering later in the year. This move aligns with the current robust state of Indian stock markets, which are hovering near record highs, with the Nifty witnessing a 12 percent increase over the past six months.
In the fiscal year ending March 2023, Vishal Mega Mart reported significant revenue growth of 36 percent, reaching 75.9 billion rupees ($917 million). Additionally, its net profit surged by 60 percent to 3.2 billion rupees, according to a report from India Ratings, a subsidiary of Fitch.
