Vishal Mega Mart plans confidential I.P.O Submission, to $1 Billion Raise

Vishal Mega Mart, a prominent fashion hypermarket chain in India, is gearing up to launch its Initial Public Offering (IPO).

The company, promoted by Kedar Capital and its promoters, is set to submit confidential papers to SEBI within the next 7 to 10 days.

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IPO Submission Process

Submitting confidential papers to SEBI precedes the Draft Red Herring Prospectus (DRHP), allowing companies to disclose limited details exclusively to SEBI.

This strategy aims to safeguard sensitive information from competitors until the IPO process progresses further.

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Financial Expectations

Sources familiar with the matter indicate that Vishal Mega Mart aims to raise between $750 million to $1 billion from the IPO.

Details on the proportion designated for Offer for Sale (OFS) versus fresh issue are yet to be disclosed.

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Regulatory Framework and Pre-Filing Route

SEBI’s November 2022 provision allows mainboard IPO aspirants to file confidentially, withholding financial metrics from public scrutiny initially.

This protects competitive advantage while the company navigates regulatory approvals.

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Investment Banks and Advisors

The IPO is advised by prominent investment banks including Kotak Mahindra Capital, ICICI Securities, Jefferies, JP Morgan, and Morgan Stanley.

Their role involves structuring the offering and navigating regulatory compliance.

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Business Overview

Vishal Mega Mart operates across three revenue segments: high-margin apparel, general merchandise, and high-volume FMCG products.

With 589 stores across 350 cities, it targets lower middle-class consumers, establishing itself as a leader in the organized value retail market.

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