Ready To Sell: VRL Completes its Pre IPO Placement

V-Mart Retail Ltd (VRL) has finished its pre-IPO placement of 12.5 lakh equity shares of the face value of Rs 10 each at a price of Rs 210 per equity share. The shares were placed with Antique Finsec Private Ltd, Antique Stock Broking Ltd, Four Dimensions Securities (India) Ltd, Lata Manek Bhanshali, Merit Credit Corporation Ltd and Tejal Rohit Kothari. The company has raised Rs 26.25 crore through this pre-IPO placement against a proposed Rs. 31.25 crore as per its DRHP filed with SEBI.

Further, VRL has come up with its IPO details which includes a public offer of 44.96 lakh equity shares consisting of 27.61 lakh fresh equity shares to be issued by the company and 17.35 equity shares being offered for sale by existing shareholder Naman Finance And Investment Private Ltd. VRL had initially in its DRHP filed with SEBI had proposed to sell 40.11 lakh fresh equity shares. This shows the company has sold only fresh equity shares in pre-IPO placement. The selling shareholder is waiting to sell its holding in public offer for a better valuation.

The company plans to use the proceed raised by sale of fresh equity shares for the purpose of financing VRL's expansion plans. We will revisit this public issue once we are clear with more pricing details of the upcoming IPO.