Vishal Mega Mart's Significant Anchor Round

In a significant move ahead of its Initial Public Offering (IPO), Vishal Mega Mart has successfully secured Rs 2,400 crore from anchor investors. The anchor round allocation included prominent investors such as SBI Mutual Fund, Government of Singapore, Nomura Funds Ireland Public Ltd, Axis MF, HDFC MF, and ICICI Prudential MF, as per BSE's website.

The anchor portion saw participation from 18 domestic mutual funds through 44 schemes, comprising 53.33% of the total. The company allocated 30.76 crore equity shares to 89 funds at Rs 78 per share, which represents the upper limit of the price band, totalling Rs 2,400 crore.

IPO Details and Market Response

The Supermarket chain's Rs 8,000-crore IPO will be available for subscription from December 11 to December 13, with shares priced between Rs 74 and Rs 78 each. The IPO consists entirely of an offer-for-sale by Kedaara Capital-led Samayat Services LLP, which currently holds 96.55% stake in the Gurugram-based retailer. As it is an OFS, the proceeds will go to the selling shareholder rather than the company.

Company Background and Market Trends

Vishal Mega Mart offers both in-house and third-party brands across apparel, general merchandise, and FMCG categories. As of June 30, 2024, it maintains 626 stores nationwide, complemented by digital platforms. Meanwhile, the Redseer report indicates that India's aspirational retail market valued at Rs 68-72 trillion in 2023, is expected to reach Rs 104-112 trillion by 2028, growing at 9% CAGR.