Get ready for a retail revolution! Vishal Mega Mart Limited is set to storm the stock market with a massive ₹8,000 crore initial public offering that promises to be the talk of the town. From December 11 to 13, 2024, investors have a golden opportunity to grab a piece of this retail giant. The entirely offer for sale issue comprises 102.56 crore shares, with a price band of ₹74 to ₹78 per share.
The minimum investment required from retail investors is ₹14,820 as the lot size stands at 190 shares. Mark your calendars as the share allotment is expected by December 16, with listing on BSE and NSE slated for December 18. This could be your ticket to potentially riding the next big retail success story!
Vishal Mega Mart IPO is a fundraise worth ₹8,000 crores comprising an offer for sale of 102.56 crore shares. The IPO will be available for subscription from December 11, 2024, to December 13, 2024, providing an opportunity for investors looking to gain a stake in the retail segment.
| Vishal Mega Mart Limited IPO Date | December 11, 2024 - December 13, 2024 |
| Price Band | ₹74 to ₹78 per share |
| Face Value | ₹10 per share |
| Lot Size | 190 shares |
| Issue Type | Book-built issue |
| Offer for Sale | 1,025,641,025 shares of ₹10 per share, amounting to ₹8,000 crores |
| Total Issue Size | 1,025,641,025 shares of ₹10 per share, amounting to ₹8,000 crores |
| Listing at | BSE, NSE |
| Share Holding Post Issue | 4,508,719,493 |
| Share Holding Pre Issue | 4,508,719,493 |
The Vishal Mega Mart Limited IPO opens for subscription on December 11, 2024, and closes on December 13, 2024, with allotment slated for December 16, 2024.
| IPO Open Date | December 11, 2024 (Wednesday) |
| IPO Close Date | December 13, 2024 (Friday) |
| Basis of Allotment | December 16, 2024 (Monday) |
| Initiation of Refunds | December 17, 2024 (Tuesday) |
| Credit of Shares to Demat Account | December 17, 2024 (Tuesday) |
| Listing Date on Exchanges | December 18, 2024 (Wednesday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 13, 2024 |
Vishal Mega Mart Limited, established in 2001, has emerged as a powerhouse in India's retail landscape, strategically positioning itself as a comprehensive hypermarket chain that caters to the everyday needs of middle and lower-middle-income consumers. With an impressive network of 645 stores spanning 414 cities across 28 states and two union territories as of September 30, 2024, the company has masterfully crafted an asset-light business model. By leasing distribution centers and stores and leveraging third-party vendors and brands, Vishal Mega Mart offers an extensive product range that includes apparel, groceries, electronics, home essentials, and more, making it one of the top two offline-first diversified retailers in India.
The company's strategic approach extends beyond physical stores, with a robust digital presence through its mobile app and website, complemented by a direct local delivery service boasting 6.77 million registered users across 600 stores in 391 cities. Their product portfolio is particularly impressive, featuring own-brand collections across multiple categories: Classics, Fashion, Denim, and Ethnic in apparel; Tandem Home Appliances, Home Select, and Home Finery in general merchandise; and Savory Products, Staples, and Home Care in FMCG. With a workforce of 16,537 employees as of September 30, 2024, Vishal Mega Mart has positioned itself as a comprehensive retail solution that bridges the gap between traditional shopping experiences and modern consumer expectations.
In this upcoming IPO, Vishal Mega Mart won't pocket a single rupee. All the proceeds will go directly to the Promoter Selling Shareholder's pocket, minus the IPO-related expenses and applicable taxes. It's a pure cash-out scenario where the promoter is monetizing their stake, with zero additional capital flowing into the company's coffers.
The Vishal Mega Mart IPO showcases a healthy market capitalization of ₹35,168.01 crores as on March 31, 2024. Key performance indicators reflect the company's financial health, with a Return on Capital Employed (ROCE) of 68.76% and PAT Margin at 5.18%.
The RoNW stands at 8.18%, while the Price-to-Book Value (P/BV) is seen at 6.23. On an annual basis, the company's Profit After Tax (PAT) increased by 43.78% while the revenue rose 17.41% in the financial year ending on March 31, 2024. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹1.02, versus ₹1.13 post-IPO.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 5,053.42 | 8,945.13 | 7,618.89 | 5,653.85 |
| Assets | 9,551.75 | 8,506.08 | 8,288.91 | 8,217.98 |
| Net Worth | 5,923.74 | 5,646.59 | 5,180.84 | 4,849.93 |
| Profit After Tax | 254.14 | 461.94 | 321.27 | 202.77 |
| Total Borrowing | - | - | 133.50 | 497.41 |
| Reserves & Surplus | 1,390.27 | 1,113.12 | 649.50 | 321.88 |
Amount in ₹ crores
Vishal Mega Mart stands out as a formidable player in the Indian retail landscape, boasting a robust and strategic approach to business growth. With an impressive portfolio of own brands that constitute 73% of its revenue, the company has demonstrated remarkable market penetration, with 19 brands exceeding ₹100 crore in sales and six brands surpassing ₹500 crore in FY 2024. The company's pan-India presence is equally impressive, operating 645 stores across 414 cities, underpinned by a technology-driven operational model that ensures efficient and cost-effective product delivery. This expansive reach is complemented by a consumer-centric approach that has cultivated a loyal customer base, emphasizing quality, affordability, and convenience.
The company's strength lies not just in its physical infrastructure, but in its strategic capabilities. Led by a professional and experienced management team, Vishal Mega Mart has consistently demonstrated a track record of delivering revenue growth, profit expansion, and capital efficiency. Its diverse brand portfolio spans multiple product categories, from apparel to home essentials, allowing the company to cater to a wide range of consumer needs. The focus on serving a large and fast-growing segment of the Indian population, combined with a commitment to quality and price leadership, positions Vishal Mega Mart as a dynamic and forward-looking retail enterprise.
Despite its strengths, Vishal Mega Mart faces several significant challenges that could potentially impact its business performance. The company's revenue is heavily concentrated in just three states—Uttar Pradesh, Karnataka, and Assam—accounting for nearly 38% of its sales. This geographical concentration exposes the company to substantial risk, as any economic slowdown, political unrest, or localized disruption could have a disproportionate impact on its overall business. Moreover, the company is currently navigating complex regulatory challenges, including directives from the Enforcement Directorate seeking information on financials, mergers, and FDI compliance, and various pending litigations that could potentially affect its operational capabilities and reputation.
The company's business model presents additional vulnerabilities, particularly in its reliance on third-party vendors for product manufacturing. With no in-house manufacturing capabilities, Vishal Mega Mart is exposed to risks such as production delays, potential cost fluctuations, and challenges in maintaining consistent quality standards. The contingent liabilities, totaling ₹60.66 crore as of September 2024, further compound these challenges, including ₹9.79 crore in income tax matters and ₹46.47 crore in claims from various stakeholders. The company's inability to guarantee against future liabilities, combined with potential complications in vendor negotiations, contract extensions, and the protection of trade secrets, creates a complex operational landscape that could potentially undermine its strategic objectives and financial stability.
Imagine being among the first wave of investors to ride the momentum of a rapidly expanding retail powerhouse. The Vishal Mega Mart IPO isn't just another stock offering—it's your front-row seat to potentially capturing the upside of India's dynamic retail sector. But here's the investor's golden rule: excitement must meet diligence. Before diving in, arm yourself with comprehensive research, scrutinize the company's financial blueprint, assess current market rhythms, and most critically, ensure this opportunity harmonizes perfectly with your personal investment symphony and risk appetite. This isn't just an investment; it's a strategic financial decision that demands your most careful consideration.
What is the Vishal Mega Mart IPO?
The Vishal Mega Mart Limited IPO is a main-board offering consisting of 102.56 crore equity shares with a face value of ₹10, aiming to raise to ₹8000 crores. The share price is set between ₹74 and ₹78, with a minimum order quantity of 190 shares. This IPO will be open for subscription from December 11, 2024, to December 13, 2024. Kfin Technologies Limited is the registrar while Kotak Mahindra Capital Company Limited, ICICI Securities Limited, Intensive Fiscal Services Private Limited, Jefferies India Private Limited, JP Morgan India Private Limited and Morgan Stanley India Company Private Limited are the book-running lead managers.
When will the Vishal Mega Mart Limited IPO open?
The Vishal Mega Mart Limited IPO will open for subscription on December 11, 2024, and will close on December 13, 2024.
When is the Vishal Mega Mart Limited IPO listing date?
The tentative listing date for the Vishal Mega Mart Limited IPO is Wednesday, December 18, 2024.
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