Vishal Mega Mart Raises ₹80,000M in IPO, Shares Surge 43%

Kedaara Capital, one of India’s largest home-grown private equity investors, proudly announces the listing of Vishal Mega Mart (the “Company” or “VMM”), a pan-India value-retail player controlled by Kedaara Capital Fund II LLP (“Kedaara Fund II”), on the National Stock Exchange of India (“NSE”) and the Bombay Stock Exchange (“BSE”) under the tickers NSE: VMM and BSE: 544307, respectively, on December 18, 2024.

The IPO, open for subscription between December 11-13th 2024, saw overwhelming demand from investors with the overall book oversubscribed 27x and non-anchor QIB portion oversubscribed 85x. The IPO price was set at ₹78 per share, and the Company’s shares closed at 43% premium to the issue price, at ₹111.9 per share on the first day. This strong listing performance reflects Vishal Mega Mart’s solid growth trajectory and investor confidence in its business model.

Kedaara Fund II, a promoter of Vishal Mega Mart, had invested in the Company in 2018, bringing in a unique blend of growth capital and operational expertise to transform the Company into a pan-India omni-channel business. The IPO represents a key milestone in unlocking value with an entity controlled by Kedaara selling approximately 23% of their equity stake, for gross proceeds of ₹80,000 million.

Vishal Mega Mart is a leading value retail player catering to the middle to lower-middle income households across India. With 645 stores in 414 cities, VMM embodies the philosophy of ‘Making Aspirations Affordable’, by providing good quality products across apparel, general merchandise and FMCG categories at affordable prices. Its proprietary brands, which constitute nearly 73% of its revenue, and its strategic focus on Tier-2 and beyond cities, which account for 70% of its stores, have helped cement its market leadership in this segment.

Reflecting on this journey, Mr. Gunender Kapur, Managing Director and CEO, Vishal Mega Mart said, "Consumer-centricity is at the core of what we do at VMM. We are committed to our mission of making aspirations affordable for middle and lower middle-income India by providing a wide assortment of aspirational and quality products across apparel, general merchandise and FMCG at affordable prices. Kedaara has been an invaluable partner in this mission helping with multiple value-additive initiatives including those that have helped accelerate the pace of our pan-India store rollout as well as scale our omni-channel presence. We look forward to their continued support in the years to come."

Neha Bansal, Chairperson of the Board, VMM, stated, "VMM’s exceptional use of technology across their business operations, across sourcing, supply chain, identifying demand trends, and facilitating a seamless hyperlocal consumer experience, enables true consumer delight. I am excited to be a witness and a guide to the Company as they cater to the aspirations of Bharat."

Nishant Sharma, Founder and Managing Partner, Kedaara Capital, said, "Our partnership with Vishal Mega Mart exemplifies our vision to back high-quality teams in building market leading enterprises in India that create enduring value for their stakeholders. We are delighted to have had the opportunity of playing our part in VMM’s journey and have high conviction on the Company’s ability to create long-term value as a public company for the years to come!”

Anant Gupta, Partner, Kedaara Capital, said "VMM’s IPO success is a testament to its exceptional management team, consumer-centric business model and high-quality execution. With 19 own brands generating over INR 1 billion in sales, a pan-India presence with ~70% of stores in Tier 2 and beyond, and an impressive 19-month store payback period, VMM has set a high standard in retail industry. We are proud to have supported their growth journey and delighted about this milestone for the Company.  We are confident that VMM is well-positioned to deliver long-term shareholder value."