According to the updated Draft Red Herring Prospectus (DRHP), the IPO is an Offer For Sale (OFS) of shares by promoter Samayat Services LLP, with no fresh issue of equity shares.

According to a PTI report, Samayat Services LLP holds 96.55 per cent stake in Gurugram-based Vishal Mega Mart.

Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholder.

Updated DRHP filed in October

The company filed its DRHP in October after its confidential offer document was approved by market regulator Securities Exchange Board of India (SEBI) on September 25. 

The company filed its offer document in July through the confidential pre-filing route. Under the confidential filing process, SEBI reviews confidential DRHP and provides comments on it.

The company floating an IPO files an update to the confidential DRHP (UDRHP-I) after incorporating the regulator’s comments. This UPDRHP-I is made available for public comments over 21 days.

After incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

Vishal Mega Mart caters to middle and lower-middle-income consumers in India. The product range includes both in-house and third-party brands, covering three key categories — apparel, general merchandise, and fast-moving consumer goods (FMCG).

As of June 30, 2024, it operates 626 stores across India, along with a mobile app and website.

(With PTI inputs)