Vishal Mega Mart launches IPO as offer for sale (#1685314)

Value focused fashion and lifestyle retailer Vishal Mega Mart launched its initial public offering of Rs 8,000 crore on December 11 through an offer for sale. The IPO is designed to enable Kedaara Capital to partially exit the business.

The IPO is expected to see Kedaara Capital reduce its stake in Vishal Mega Mart from 96.5% to 76%, ET Bureau reported. As the IPO is an offer for sale, the business itself will not receive any financial proceeds from the share sale. The IPO has an implied market cap of Rs 35,168 crore and values the business at a rate of 71 times its annualised earnings for the 2025 financial year.
 
Vishal Mega Mart counts over 645 brick-and-mortar stores in 414 Indian cities. The Gurugram based business has reported that 48% of its revenue comes from clothing while 28% comes from general merchandise and 23% comes from fast moving consumer goods. Moreover, the business’ main profit drivers are its apparel and general merchandise categories.
 
The 2024 financial year saw Vishal Mega Mart’s same-store sales growth increase in double digits across categories, the Economic Times reported. The business’ own brands’ sales make up the most part of its revenue, especially in the apparel segment. The business also reported a 26% compound annual growth rate in the previous fiscal year at Rs 8,911 crore.