Vishal Mega Mart IPO Price: ₹74 to ₹78 per share
IPO Dates: 11 December 2024 – 13 December 2024
Company Overview
Incorporated in 2001, Vishal Mega Mart is a leading hypermarket chain in India that caters to the everyday needs of middle and lower-middle-income groups. The company provides a wide range of products, including apparel, groceries, electronics, and home essentials, through its offline stores and digital platforms like its mobile app and website.
Product Categories
Vishal Mega Mart offers products across three major categories:
- Apparel: Includes t-shirts, shirts, denim, nightwear, innerwear, western wear, formal wear, and ethnic wear for men, women, children, and infants.
- General Merchandise: Features home appliances, crockery, utensils, home furnishings, toys, stationery, travel accessories, and footwear.
- Fast-Moving Consumer Goods (FMCG): Includes packaged food items, staples, and non-food products like home care essentials.
Business Model
The company operates an asset-light model, leasing all its stores and distribution centers. Its products are either manufactured by third-party vendors or sourced from third-party brands. This allows Vishal Mega Mart to focus on efficient operations and cost management.
Store Network and Reach
As of September 30, 2024:
- Vishal Mega Mart has 645 stores across 414 cities in India, covering an aggregate store area of 11.49 million square feet.
- The company’s mobile app and website complement its offline presence, making shopping convenient for customers nationwide.
- It has established a robust direct local delivery service available in 600 stores across 391 cities, with 6.77 million registered users.
Key Milestones and Achievements
- Vishal Mega Mart was initially incorporated as Rishanth Wholesale Trading Pvt Ltd in 2018, renamed Vishal Mega Mart Pvt. Ltd in 2020, and became a public limited company in May 2024.
- The company ranks among the top two offline-first diversified retailers in India based on profitability and growth.
- Its loyalty program boasts 133.82 million registered customers and won the “Best Loyalty Programme of the Year” award at the International Loyalty Awards 2023.
Business Performance
Vishal Mega Mart has demonstrated impressive growth in its portfolio of own brands, with 19 brands achieving sales of over ₹100 crore each and six brands surpassing ₹500 crore in FY2024. The revenue from these brands grew at a robust compound annual growth rate (CAGR) of 27.72% between FY2022 and FY2024. Additionally, the company has achieved operational efficiency with an average payback period of just 19 months for new stores opened in FY2023, the shortest among leading offline-first retailers in India.
Strengths
- Large Customer Base: The company serves a wide section of the Indian population, focusing on affordability and variety.
- Pan-India Presence: With a presence in 28 states and two union territories, the company is accessible to consumers nationwide.
- Technology-Driven Operations: Advanced systems ensure seamless inventory management and operations.
- Diverse Portfolio of Brands: Offers in-house brands like Classics (Apparel), Tandem Home Appliances (General Merchandise), and Savory Products (FMCG).
- Strong Management Team: Professional leadership with a track record of revenue and profit growth.
Awards and Recognition
- Vishal Mega Mart was ranked among the top three offline-first diversified retailers in India based on retail space as of March 31, 2024.
- It held a leadership position in offering the best opening price points across several categories in apparel, FMCG, and general merchandise.
Vishal Mega Mart continues to grow its footprint and enhance its product offerings to meet the evolving needs of its customers while maintaining affordability, quality, and convenience.
Bidding Starts In
Vishal Mega Mart IPO Specifics:
| IPO Date | December 11, 2024 to December 13, 2024 |
| Listing Date | Wednesday, December 18, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹74 to ₹78 per share |
| Lot Size | 190 Shares |
| Total Issue Size | 1,025,641,025 shares (aggregating up to ₹8,000 Cr) |
| Offer For Sale | 1,025,641,025 shares (aggregating up to ₹8,000 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 4,508,719,493 |
| Share holding post issue | 4,508,719,493 |
Vishal Mega Mart IPO Timetable (Important Dates)
| IPO Open Date | Wednesday, December 11, 2024 |
| IPO Close Date | Friday, December 13, 2024 |
| Basis of Allotment | Monday, December 16, 2024 |
| Initiation of Refunds | Tuesday, December 17, 2024 |
| Credit of Shares to Demat | Tuesday, December 17, 2024 |
| Listing Date | Wednesday, December 18, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 13, 2024 |
Vishal Mega Mart IPO Lot Size
Bidders have the opportunity to bid for a minimum of 190 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| 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 Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Vishal Mega Mart Limited IPO Financial Information
Vishal Mega Mart Limited experienced a notable uptick in its revenue, showing a growth of 17.41%, while the profit after tax (PAT) surged by an impressive 43.78% during the period spanning from the financial year concluding on March 31, 2024, to March 31, 2023.
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 Sept 2024 |
|---|---|---|---|---|
| Assets | 8217.98 | 8288.91 | 8506.08 | 9551.75 |
| Revenue | 5653.85 | 7618.89 | 8945.13 | 5053.42 |
| Profit After Tax | 202.77 | 321.27 | 461.94 | 254.14 |
| Net Worth | 4849.93 | 5180.84 | 5646.59 | 5923.74 |
| Reserves and Surplus | 321.88 | 649.50 | 1113.12 | 1390.27 |
| Total Borrowing | 497.41 | 133.50 |
Key Performance Indicator – Vishal Mega Mart IPO
| KPI | Values |
|---|---|
| Market Cap. | ₹ 35,168.01 Cr |
| EPS | ₹1.02 |
| P/E (x) | 76.13 |
| ROCE | 68.76% |
| RoNW | 8.18% |
| P/BV | 6.23 |
Objects of the Issue:
The Company shall not be entitled to any proceeds of the Offer for Sale made by the Promoter Selling Shareholder. The said proceeds of the Offer for Sale, net of the Share of issue expenses and applicable taxes payable by the Promoter Selling Shareholder will belong to the Promoter Selling Shareholder.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
