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Vishal Mega Mart debuts on Indian stock exchanges

Published 12/20/2024, 02:16 AM

MUMBAI – Vishal Mega Mart, a prominent Indian retail chain, has been listed on the National Stock Exchange (NSE: VMM) and Bombay Stock Exchange (BSE: 544307) following its initial public offering (IPO) priced at INR 78 per share. This pricing values the company at a fully diluted equity value of INR 370 billion.

The IPO consisted of 1,026 million shares of common stock. Partners Group Private Equity Limited (LSE: PEYS/PEY), a significant investor in Vishal Mega Mart, sold about 23% of its stake in the retailer during the IPO, realizing an uplift of 36% from the value reported in its last monthly report on October 31, 2024. Following the first day of trading, the remaining interest of Partners Group in Vishal Mega Mart represents an increase of approximately 79% from the October valuation, equating to a total exposure of around EUR 97.9 million.

Vishal Mega Mart, which targets middle- and lower-middle income consumers, operates over 640 stores across India, offering a mix of apparel, general merchandise, and fast-moving consumer goods. The company's growth trajectory has been strong, with EBITDA increasing by over 55% and revenues by more than 60% in the past two years.

Partners Group's investment in Vishal Mega Mart dates back to 2018, with the retailer benefiting from India's economic growth, urbanization, and expansion in Tier-2 cities. The company's success has also been attributed to its store expansion, same-store sales growth, and operational efficiencies.

The listing event marks a significant milestone for Vishal Mega Mart, providing public investors with the opportunity to participate in the company's future growth. The IPO also reflects the continued vitality of the Indian retail sector, which serves a vast consumer base.

This news is based on a press release statement from Partners Group Private Equity Limited. The company has implemented a lock-up period for pre-IPO stockholders, with 80% of its shares in Vishal Mega Mart under lock-up for six months and the remaining 20% for an additional 12 months.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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