 "Vishal Mega Mart to float Rs 8,000 crore public issue on December 11")
Supermart major Vishal Mega Mart is set to launch its Rs 8,000 crore initial share-sale on December 11 for public subscription.
The initial public offering (IPO) will conclude on December 13 and the bidding for anchor investors will open for a day on December 10, the red herring prospectus (RHP) showed on Thursday.
The proposed IPO is entirely an offer for sale (OFS) of shares by promoter Samayat Services LLP, with no fresh issue of equity shares, according to the updated draft red herring prospectus (UDRHP).
At present, Samayat Services LLP holds 96.55 per cent stake in the Gurugram-based supermart major.
Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholder.
The updated draft filing was filed in October after Vishal Mega Mart's confidential offer document was approved by Sebi on September 25. The company filed its offer document in July through the confidential pre-filing route.
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Under the confidential filing process, Sebi reviews confidentialHP and provides comments on it.
Thereafter, the company going public is required to file an update to the confidentialHP (UDRHP-I) after incorporating the regulator's comments. This UPDRHP-I is made available for public comments over 21 days.
Finally, after incorporating the changes due to public comments, the company is required to update theHP-II (UDRHP-II).
Vishal Mega Mart is a one-stop destination catering to middle and lower-middle-income consumers in India.
The product range includes both in-house and third-party brands, covering three key categories -- apparel, general merchandise, and fast-moving consumer goods (FMCG).
As of June 30, 2024, it operates 626 Vishal Mega Mart stores across India, along with a mobile app and website.
According to the Redseer report, India's aspirational retail market was valued at Rs 68-72 trillion in 2023 and is projected to reach Rs 104-112 trillion by 2028, growing at a CAGR of 9 per cent. The shift towards organized retail is driven by higher quality expectations, wider product assortments, better pricing (especially in FMCG), urbanisation, and opportunities for organised players to grow.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India. JP Morgan India, Morgan Stanley India Company are the book-running lead managers to the issue.
Star Agriwarehousing files IPO papers with Sebi
Star Agriwarehousing and Collateral Management Ltd, a tech-driven agricultural services firm, has filed preliminary papers with the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).
The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 450 crore and an offer for sale (OFS) component of 2,690 million equity shares by promoters and an investor, according to the draft red herring prospectus (DRHP) filed on Wednesday. As part of the OFS, Claymore Investments (Mauritius) Pte, an indirect subsidiary of Temasek Holdings, is offering 1190 million equity shares through the OFS and the remaining 150 million shares will be offloaded by promoters.
At present, Claymore holds 11.83 per cent stake in Star Agriwarehousing and Collateral Management and promoters own 88.17 per cent stake in the company.
The company may consider raising Rs 90 crore through a pre-IPO placement. If this placement happens, the fresh issue size will be reduced. The Maharashtra-based company plans to utilise the proceeds of the fresh issue worth Rs 120 crore to partly fund its working capital requirements.