Vishal Mega Mart IPO becomes $5B jackpot for 2 investors
Vishal Mega Mart, one of India's leading retail chains, made a stellar debut in the stock market on Wednesday. The company's shares listed at a premium of 33.3% over its initial public offering (IPO) price of ₹78, and closed the day with a total 45% gain. The stellar market performance translated into huge profits for early investors Manas Tandon and Nishant Sharma, who earned nearly $5 billion collectively.
Individual gains of Tandon and Sharma
Tandon, who heads the Private Equity for Goods & Products vertical at Partners Group, witnessed his returns exceed $3 billion. On the other hand, Sharma, the founder and Managing Partner at Kedaara, bagged a profit of $1.6 billion. These massive returns underscore their successful investment strategy in Vishal Mega Mart.
Vishal Mega Mart's growth and IPO success
Since 2018, Vishal Mega Mart has grown from 200 outlets to more than 650 stores in FY24, with revenues of around ₹8,900 crore. The company's ₹8,000 crore IPO was oversubscribed 27 times during its three-day subscription period. It drew bids worth over ₹1.6 lakh crore and further cemented Vishal Mega Mart's status as a retail powerhouse.
Investors' long-term commitment and future plans
Speaking to CNBC-TV18, Sharma credited the company's success to its scalable and customer-centric business model. He called Vishal Mega Mart "a perfect example of compounding," lauding its 'box model' retail store format that provides affordable apparel, general merchandise, and FMCG products. Both Tandon and Sharma reiterated their long-term commitment to the company, confident that it would continue to create value for shareholders in the future.
