India’s Vishal Mega Mart Planning $1 Billion IPO: Report – News18

India’s Vishal Mega Mart is planning a $1 billion preliminary public providing that will worth the price range grocery store chain at as much as $5 billion with among the proceeds earmarked so as to add shops, two folks with direct data of the plan stated.

Switzerland’s Partners Group and India’s Kedaara Capital, which collectively have a majority stake in Vishal Mega Mart, will every promote shares within the providing, stated the folks, declining to be recognized because the discussions have been personal.

It was not instantly clear precisely how a lot of Vishal Mega Mart the 2 personal fairness corporations personal, how a lot they might promote and if they might retain a majority holding.

Vishal Mega Mart Chief Executive Gunender Kapur didn’t reply to Reuters requests for remark. Kedaara additionally didn’t reply whereas Partners Group declined to remark.

The retailer has 560 shops, primarily in smaller cities, that promote garments and grocery objects. It competes with Indian tycoon Mukesh Ambani’s Reliance, Tata Group’s Trent and grocery retailer Avenue Supermarts.

Investment banks have been invited to pitch for the IPO this week and the providing is more likely to happen later this yr, the folks stated.

The plans come at a time when Indian inventory markets are buying and selling close to document highs and the benchmark NIFTY index has climbed 12% over the past six months.

Bankers and analysts anticipate IPO exercise in India to realize tempo amid fast financial progress and a secure political surroundings with Prime Minister Narendra Modi more likely to simply win a 3rd time period in an election due by May.

Vishal Mega Mart’s revenues jumped 36% to 75.9 billion rupees ($917 million) in its final monetary yr ended March 2023, whereas web revenue surged 60% to three.2 billion rupees, based on a report by Fitch-owned India Ratings.

India’s retail market may very well be value $2 trillion by 2033 in contrast with about $840 billion presently, based on estimates from Boston Consulting Group.

Brick-and-mortar companies proceed to dominate many of the nation’s retail sector regardless of the rise of e-commerce platforms like Amazon and on the decrease finish of the market, customers are more and more shifting from roadside unbranded retailers to chains.

Vishal Mega Mart, which sells T-shirts from as little as 99 rupees ($1.5) and denims from $9, positive factors about half of its gross sales from attire, based on the sources. It additionally sells

and baggage along with groceries.

Partners Group and Kedaara acquired Vishal Mega Mart for about $350 million in 2018 from rival buyout corporations TPG and India’s Shriram Group.

(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – Reuters)