Vishal Mega Mart, a budget supermarket chain, is reportedly planning a $1 billion initial public offering, which could value the company at up to $5 billion. Some of the proceeds are expected to be earmarked for expanding its store network.
As per a Reuters report citing sources, Partners Group of Switzerland and India’s Kedaara Capital, which hold a majority stake in Vishal Mega Mart, are anticipated to offload shares in the offering. The exact extent of ownership by these equity firms in Vishal Mega Mart, as well as their anticipated sell-off and retention amounts, remains unclear. Partners Group and Kedaara acquired Vishal Mega Mart for around $350 million in 2018 from rival buyout firms TPG and Shriram Group.
Vishal Mega Mart, predominantly situated in smaller urban centers, operates 560 stores offering a variety of clothing and grocery products.
Continue Exploring: BigBasket aims to turn profitable in 8 months; eyeing IPO in 2025
Insiders informed the news agency that investment banks have been invited to present proposals for the IPO this week, with expectations for the offering to occur later in the year.
According to a report by India Ratings, Vishal Mega Mart saw a 36% increase in revenue to $917 million in its last financial year ended March 2023, while net profit surged by 60%.
Vishal Mega Mart offers a wide range of products, such as clothing, home appliances, luggage, and groceries, all at affordable prices. For example, customers can purchase a T-shirt for as little as INR 99 and jeans for under INR 800. Approximately half of its sales come from clothing.
Reports of Vishal Mega Mart’s IPO comes at a time when the Indian stock markets are trading near record highs and the benchmark NIFTY index has climbed 12 per cent over the last six months. IPO activity is expected to gain pace amid the country’s rapid economic growth and a stable political environment.
