Vishal Mega Mart files draft IPO papers to raise Rs 8,000 crore

Vishal Mega Mart, the biggest fashion-focused hypermarket chain in India, has gained prominence and now has more than 400 locations throughout the nation. Established in 2001 by Ram Chandra Agrawal, the business began as a small endeavor with the primary goal of providing ready-made clothing. Vishal Mega Mart did, however, broaden its product line over time and start selling general merchandise and groceries in addition to apparel. Agarwal’s commitment to providing high-quality goods at reasonable costs established the groundwork for the company’s success. Although he had to overcome many obstacles in the beginning, his unwavering dedication to innovation and customer satisfaction paved the way for much more.It will have 626 Vishal Mega Mart locations in India as of June 30, 2024, in addition to a website and a mobile app.

Specifics of the Vishal Mega Mart IPO

The capital markets regulator Sebi received updated draft documents from major supermarket chain Vishal Mega Mart on Thursday, allowing it to flog Rs 8,000 crore through an initial public offering (IPO).

The Updated Draft Red Herring Prospectus (UDRHP) states that promoter Samayat Services LLP will only offer shares for sale (OFS) as part of the planned IPO; no new equity shares will be issued. Currently, 96.55% of the major supermart located in Gurugram is owned by Samayat Services LLP.

Vishal Mega Mart IPO fully used for OFS

The IPO is wholly an OFS, so no money will be issued to the company; instead, the selling shareholder will receive all proceeds. Following Sebi’s approval of Vishal Mega Mart’s confidential offer document on September 25, the revised draft filing was submitted. The company used the private pre-filing method to submit its offer document in July.

 SEBI reviews DRHPs for Vishal Mega Mart 

Sebi reviews and provides feedback on DRHPs that are confidential as part of the filing process. Following that, and after taking into account the regulator’s feedback, the going public company must submit an update to the confidential DRHP (UDRHP-I). Public comments on this UPDRHP-I are now being accepted.

Lastly, the company must update the DRHP-II (UDRHP-II) after taking into account the modifications brought about by public comments. The bookrunning lead managers for this issue are Morgan Stanley India Company, J.P. Morgan India, Intensive Fiscal Services, Kotak Mahindra Capital Company, and ICICI Securities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.