Gurugram-based Vishal Mega Mart has filed a draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise ₹8,000 crore in an IPO (initial public offering). The proposed IPO will be an offer for sale of shares entirely through the promoter Samayat Services LLP and no new shares will be issued.
Currently, the promoters hold 98.77 per cent stake in the company, which includes 96.55 per cent shareholding of Samayat Services LLP. Vishal Mega Mart, which offers products across apparel, general merchandise and fast moving goods categories through its 626 stores and Vishal Mega Mart mobile application and website. Indian billionaire Mukesh Ambani’s Reliance Retail competes with Tata Group’s Trent and grocery retailer Avenue Supermarts.
Offline-First Diversified Retailers
It is one of the two leading offline-first diversified retailers in India showing same-store sales growth. The company’s financial performance has been strong over the years, with Consolidated Net Profit registering a sharp growth of 43.8 per cent to ₹461.9 crore in FY24, while Revenue grew by 17.5 per cent to ₹8,911.9 crore over the previous year.
EBITDA (earnings before interest, tax, depreciation and amortization) grew by 22.3 per cent year-on-year to ₹1,248.6 crore in FY24, while margins expanded by 50 basis points to 14 per cent. In fact, margins improved in FY24, as it declined by 90 basis points in FY23 from 14.4 per cent in FY22. Net profit for the June 2024 quarter period stood at ₹150.1 crore, while revenue stood at ₹2,596.3 crore.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India and Morgan Stanley India have been appointed as book running lead managers to the issue.