Upcoming IPO Details: There is going to be a new stir in the country’s retail market. Supermarket chain More Retail, which is supported by Amazon and Samara Capital, is preparing to enter the stock market in the coming years. The company plans that it will bring the IPO to raise around Rs 2,000 crore by FY 2026.
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What will the company get from IPO and why is it special for investors?
According to Vinod Nambiar, Managing Director of More Retail, this IPO will mainly be brought with the objective of raising new capital investment. In this, large -scale shares will not be sold by promoters.
Samara Capital and Amazon have 51% and 48% stake respectively and are currently intended to maintain their stake. Only about 10% stake is expected to have dilution, which will depend on market conditions.
Fund use: in the direction of expansion and debt recreation
The company will use the amount raised from the IPO to expand its store network and reduce debt. Currently, the company has a loan of about Rs 500 crore, which includes various types of loans and debentures. The target is to increase the number of stores by 2030 to 3,000.
In the last five years, the promoters of the company have invested an additional Rs 900 crore. Apart from this, recently, additional funding of Rs 150 crore has also been received from some family offices, so that the current valuation of the company can be assessed.
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Current status and future direction
Currently, there are about 1,100 stores of more retail and the company aims to earn an Ebitda profit of Rs 60 crore by FY 2026. However, in FY 2024, the company had an Ebitda loss of Rs 65 crore. The company may take the next two years to reach the level of net profit (PAT).
Digital expansion with amazon fresh
More Retail has further strengthened the partnership with Amazon Fresh to speed up its digital expansion. Currently about 270 stores are associated with this service. The company aims to reach this number 370 by July and 600 by the end of the financial year.
Also, there are plans to increase the number of ‘Dark Stores’ – that is, which only work for the fulfillment of online orders – from 40 to 100.
Future expansion-Tier-2 and Tier-3 cities
Small cities will play an important role in the more retail strategy. In the coming time, the company will start its stores in states like Jharkhand and Odisha. Currently, the company has a strong presence in South India, Punjab, Haryana and NCR, while it is slowly withdrawing from metros like Delhi and Mumbai.
Special attention to West Bengal
The company considers West Bengal a strategically important market. There are currently 109 stores in the state, and it is planned to open 90 new stores in the next two years.
What is special for investors? (Upcoming IPO Details)
- IPO completely Growth funding It is based on – limited dialion of promoter share.
- Company Become a debt -free Active in the direction of efforts.
- With online and offline expansion strategy Amazon Like strong partnership.
- Tier-2 and Tier-3 cities Plan to expand in – which is the center of India’s real retail growth.
