Vishal Mega Mart, based in Gurugram, has submitted a draft red herring prospectus (DRHP) to SEBI, the capital markets regulator, in an attempt to raise Rs 8,000 crore through an initial public offering (IPO). The promoter, Samayat Services LLP, will sell all of the shares in the proposed IPO; no new equity shares will be issued.
Promotor shareholding pattern
The promoters own 98.77 per cent of the business, which includes 96.55 per cent of Samayat Services LLP's shares.
Peers of vishal mega mart
Top peers of Vishal Mega Mart include Tata Group's Trent, grocery store Avenue Supermarts, and Mukesh Ambani's Reliance Retail.
Vishal Mega Mart sells clothing, general merchandise, and fast-moving consumer goods through its 626 locations as well as its website and mobile application.
IPO structure
The promoter will receive all proceeds from the issue. Therefore, listing equity shares on stock exchanges and executing the Rs 8,000 crore offer-for-sale are the primary goals of the Vishal Mega Mart IPO.
Company financials
With consolidated net profit for the year ended March 2024 rising sharply by 43.8 per cent to Rs 461.9 crore and revenue rising by 17.5 per cent to Rs 8,911.9 crore, the retailer's financial performance has remained strong in recent years.
During fiscal 2024, EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 22.3 per cent year over year to Rs 1,248.6 crore, while the margin increased by 50 basis points to 14 per cent. Although the margin was down 90 basis points from 14.4 per cent in FY22 to 14.4 per cent in FY23, it actually improved in FY24.
With revenue of Rs 2,596.3 crore, net profit for the three-month period ending in June 2024 was Rs 150.1 crore.
Book running lead manager and registrar
The issue's book running lead managers are Morgan Stanley India Company, Jefferies India, JP Morgan India, Intensive Fiscal Services, ICICI Securities, and Kotak Mahindra Capital Company.
