Vishal Mega Mart is reportedly eyeing a colossal $1 billion initial public offering (IPO), aiming to hike the budget supermarket chain’s valuation to a staggering $5 billion.

What Happened: A portion of the IPO proceeds will be allocated to store expansion endeavors, Reuters reported, citing sources close to the matter.

Partners Group from Switzerland and India’s Kedaara Capital, the predominant stakeholders in Vishal Mega Mart, are poised to divest shares in the offering. However, the exact quantum of shares to be sold and the retention of majority ownership remain undisclosed.

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With a network of 560 outlets primarily situated in tier 2 and tier 3 cities, Vishal Mega Mart stands as a competitor to giants like Reliance Retail, Trent and Avenue Supermarts (DMart). Vishal’s revenue surged by 36% to ₹7,590 crore ($917 million) in the fiscal year ending March 2023, accompanied by a 60% spike in net profit to ₹320 crore.

The impending IPO comes at a time when India’s stock market is flying high, underpinned by robust economic growth and a favourable political climate.

Vishal Mega Mart’s diverse product portfolio, encompassing apparel, home appliances, luggage and groceries, positions it favorably in a retail market poised for substantial expansion. With a significant portion of its sales derived from apparel, the company caters to a broad consumer base with its affordable pricing strategy.

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