Vishal Mega Mart IPO will open on December 11, 2024, and close on December 13, 2024. Vishal Mega Mart Limited, established in 2001, is in the retail-chain business with product portfolio spending across apparel, general merchandise, and fast-moving consumer goods. So, let’s go through the Vishal Mega Mart IPO details, listing date, price band, and peer comparison.
Vishal Mega Mart IPO Date 2024
The key pointers for the Vishal Mega Mart IPO date are:
- Bidding Opening Date: December 11, 2024
- Bidding Closing Date: December 13, 2024
- Basis of Allotment Date: December 16, 2024
- Initiation of Refunds (in case of less or no allotment): December 17, 2024
- Shares Credited to Your Demat Account: December 17, 2024
- IPO Listing Date: December 18, 2024
- Listing on Exchange: NSE and BSE
Vishal Mega Mart IPO Details
Vishal Mega Mart IPO size is set at ₹8,000 crores with only the OFS component.
Here are the key details of Vishal Mega Mart IPO:
- Vishal Mega Mart IPO Price Band: ₹74 to ₹78 per share
- Face Value: ₹10 per share
- Lot Size: 190 Shares
- Total Issue Size and Amount: 1,02,56,41,025 shares (amounting to ₹8,000 crores)
- Offer for Sale and Amount: 1,02,56,41,025 shares (amounting to ₹8,000 crores)
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Vishal Mega Mart IPO Proceeds Usage
Vishal Mega Mart IPO proceeds (minus offer-related expenses) will go to the promoter selling shareholders and the company will not directly receive any money.
Vishal Mega Mart IPO Reservations
Vishal Mega Mart IPO reservations to different investors are:
- For QIBs: Not more than 50% of the offer
- For NIIs: Not less than 15% of the offer
- For Retail Investors: Not less than 35% of the offer
- Vishal Mega Mart IPO shareholder quota: There is no provision of this quota in the RHP filed by the company.
Vishal Mega Mart IPO Lot Size
Vishal Mega Mart IPO lot size is 190 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:
| Applicant Type | Lot Size | Shares | Amount (in ₹) |
|---|---|---|---|
| Retail (Min) | 1 | 190 | ₹14,820 |
| Retail (Max) | 13 | 2,470 | ₹1,92,660 |
| S-HNI (Min) | 14 | 2,660 | ₹2,07,480 |
| S-HNI (Max) | 67 | 12,730 | ₹9,92,940 |
| B-HNI (Min) | 68 | 12,920 | ₹10,07,760 |
Vishal Mega Mart IPO: Promoter Holding
The current promoters and selling shareholders in Vishal Mega Mart IPO are:
- Samayat Services LLP: 96.46% stake
- Kedaara Capital Fund II LLP: 2.44% stake
Samayat Services LLP is the selling shareholders in Vishal Mega Mart IPO.
Vishal Mega Mart IPO: Company Overview
Vishal Mega Mart sells a portfolio of products under its own brands and third-party brands with a pan-India network of 645 stores as of September 2024. The company also sells the products on the Vishal Mega Mart mobile application and website. The target consumers are the middle and lower-middle-income class of India with a key focus on four pillars: variety, affordability, quality, and convenience.
The company is ranked among the three leading offline-first diversified retailers in India, based on retail space as of March 31, 2024. It is also the fastest-growing leading offline-first diversified retailer in India, based on PAT growth between FY21 and FY24. It is among the two leading offline-first diversified retailers in India in terms of same-store sales growth for FY24.
Vishal Mega Mart IPO: Financial Performance
Vishal Mega Mart’s key financials for different periods are as follows:
| Particulars | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | YoY Change |
|---|---|---|---|---|
| Revenue from operations | 5,032.51 | 8,911.95 | 7,586.04 | 17.48% |
| PAT | 254.14 | 461.94 | 321.27 | 43.78% |
| EBITDA | 668.03 | 1,248.60 | 1,020.52 | 22.35% |
| Assets | 9,551.75 | 8,506.08 | 8,288.91 | 2.62% |
| Net cash flow from operating activities | 991.84 | 829.67 | 635.53 | 30.55% |
*(in ₹ crores)
- In FY24, Vishal Mega Mart Limited’s revenue from operations and PAT grew by 17.48% YoY and 43.78% YoY, respectively.
- EBITDA also increased by 22.35% from FY23 to FY24 while assets rose by 2.62%.
- Net cash flow from operating activities increased by 30.55% in the same period.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Vishal Mega Mart IPO: Key Business Verticals
Here are the sales generated by the three main categories of products of Vishal Mega Mart:
| Revenue from Main Products | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | YoY Change |
|---|---|---|---|---|
| Apparel | 2,244.85 | 3,901.32 | 3,292.68 | 18.48% |
| General Merchandise | 1,401.37 | 2,543.32 | 2,238.35 | 13.62% |
| Fast-moving Consumer Goods | 1,379.94 | 2,447.31 | 2,031.96 | 20.44% |
*(in ₹ crores)
All three verticals have experienced sales growth in FY24 with apparel growing by 18.48% YoY.
In FY24, general merchandise and FMCG sales have also registered a growth of 13.62% YoY and 20.44% YoY, respectively.
Competitor Analysis of Vishal Mega Mart IPO
The comparison of Vishal Mega Mart Limited’s performance with its peers in the same industry is as follows:
| Company Name | Revenue from Operations (in ₹ crores) | EPS (₹) | Return on Net Worth (%) | EBITDA Margin (%) | Number of Stores (No.) |
|---|---|---|---|---|---|
| Vishal Mega Mart Limited | 8,911.95 | 1.02 | 8.18% | 14.01% | 611 |
| Avenue Supermarts Limited | 50,788.83 | 38.99 | 13.56% | 8.08% | 365 |
| Trent Limited | 12,375.11 | 41.82 | 39.99% | 22.99% | 903 |
*(For FY24 ending)
- Vishal Mega Mart Limited’s EPS is the lowest among the three but its EBITDA margin is more than 10%, which is good.
- The number of stores operated by Vishal Mega Mart has also increased to 611 in FY24 from 557 in FY23.
Risk Factors in Vishal Mega Mart IPO
Vishal Mega Mart IPO GMP is ₹13.50 as of December 6, 2024 (at 13:27) and it is expected to list at a 17.31% gain. However, GMP is not the only criterion to bid for an IPO.
The company is exposed to various risk factors which can eventually affect the business and investor’s perception:
- Dependence on third-party vendors for the manufacturing of all the products sold in the stores and any failure to meet the quality standards can impact the business.
- Failure to identify the consumer’s changing preferences can lead to a fall in the demand for the products.
- Failure to identify the accurate consumer demand to keep up with the inventory levels can impact operations and financial performance.
- Geographical concentration in Uttar Pradesh, Karnataka, and Assam for the sales of the products and revenue generation.
- Negative cash flows from financing and investing activities in the past may continue in the future as well.
- Stores, distribution centers, and offices are on a leasehold basis, exposing the company to the risk of leasing real estate framework.
Vishal Mega Mart IPO Contact Information
For inquiries related to the Vishal Mega Mart IPO details, you can contact at the following places:
Registered Office Address: Plot No. 184, Fifth Floor Platinum Tower, Udyog Vihar Phase-1 Gurugram 122016, Haryana, India
Email: secretarial@vishalwholesale.co.in
Company Website: http://www.aboutvishal.com/
Vishal Mega Mart IPO Registrar Details:
Registrar Name: KFIN Technologies Limited
Phone: 91 40 6716 2222
Email: vmm.ipo@kfintech.com
For all the insights on Vishal Mega Mart IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening demat account now.
FAQs
1. Who purchased Vishal Mega Mart?
Switzerland’s Partners Group and India’s Kedaara Capital acquired Vishal Mega Mart from TPG Capital and India’s Shriram Group for approx. $350 million in 2018.
2. Is Vishal Mega Mart profitable?
Vishal Mega Mart PAT (profit after tax) is ₹254.14 crores in the first half of FY25.
3. When was Vishal Mega Mart started?
Vishal Mega Mart was founded in the year 2001 by Ram Chandra Agarwal.
References:
https://www.sebi.gov.in/filings/public-issues/dec-2024/vishal-mega-mart-red-herring-prospectus_89311.html
SMC Global Securities Research Team
Author: All Content is verified by SMC Global Securities.
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