Aditya Birla-backed V-Mart raises $2.6m from anchor investors

According to a regulatory filing, IDFC Premier Equity Fund purchased 64.70% of the shares, with Morgan Stanley Mutual Fund taking the remainder.

Delhi-based V-Mart operates a chain of 59 medium-sized hypermarket-format retail stores across 50 tier two and tier three cities in north and west India. Aditya Birla picked up a 25% stake in the company in July 2008, through its private equity unit, Naman Finance, for an undisclosed amount.

Last month the company raised around INR262 million through a pre-IPO placement of 1.25 million shares at INR210 apiece to investors like Antique Finsec, Antique Stock Broking, Four Dimensions Securities (India), Lata Manek Bhanshali, Merit Credit Corporation and Tejal Rohit Kothari.

V-Mart Retail has filed a red herring prospectus proposing a public issue of 4.4 million shares, comprising 2.7 million new shares and 1.7 million shares to be sold by Naman Finance. The issue will constitute 25.04% of the post-issue paid-up capital of the company. Aditya Birla will see its stake reduced to 9% after the IPO. 

Anand Rathi Advisors is the sole book runner and lead manager to the issue and Karvy Computer Shares is serving as registrar.

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• Topics
• South Asia
• Exits
• Consumer
• India
• Aditya Birla Capital Advisors
• Consumer
• IPO
• Exit