Vishal Mega Mart IPO: From financials to key dates, here are 10 things to know from RHP
Vishal Mega Mart plans to launch its IPO next week to raise ₹8,000 crore, with shares priced between ₹74-78. The IPO opens on December 11 and closes on December 13, with 50% of shares allocated for institutional investors.
Vishal Mega Mart IPO: Leading supermarket chain Vishal Mega Mart plans to launch its initial public offering next week, to raise ₹8,000 crore. Vishal Mega Mart IPO price band has been fixed in the range of ₹74-78 per share.
Bidders can place bids for a minimum of one lot, consisting of 190 shares, and in multiples of that amount thereafter. At the highest price point in the price band, investing in one lot of Vishal Mega Mart would require a minimum of ₹14,820.
Vishal Mega Mart IPO is entirely an offer for sale (OFS).
Vishal Mega Mart IPO: Key things to know from RHP
Here are key things that investors should know from the RHP before subscribing to the Vishal Mega Mart IPO:
Vishal Mega Mart IPO Key Dates
The IPO of Vishal Mega Mart will open on December 11 and close on December 13. Meanwhile, bidding for anchor investors will open on December 10, a day ahead of the public offer commencement date.
Vishal Mega Mart IPO Structure
Of the approximately 102.5 crore shares available for bidding, 50% have been allocated for institutional investors (QIBs), while 15% are reserved for non-institutional investors. The remaining 35% of shares in the IPO will be set aside for retail investors.
IPO
Vishal Mega Mart IPO Objective
Since the IPO is an offer for sale by the promoter selling shareholder, the company will not receive any proceeds. The promoter selling shareholder will be entitled to the proceeds from the OFS.
Vishal Mega Mart Promoters
Samayat Services LLP and Kedaara Capital Fund II LLP are the promoters of the company. Samayat Services LLP is the promoter selling shareholder. Its average cost of acquisition is ₹10.14.
Vishal Mega Mart Financials
The company reported a 17.48% YoY increase in its revenue from operations to ₹8,911.94 crore in the fiscal year 2023-2024 (FY24) as against ₹7,586 crore in the year-ago period.
Meanwhile, its profit after tax (PAT) stood at ₹461.93 crore in FY24 as against ₹321.27 crore in FY23, marking an increase of 44 YoY.
Its operating margin also witnessed an improvement to 14% from 13.45% YoY.
Vishal Mega Mart Business Overview
Vishal Mega Mart, ranked among the three leading offline-first diversified retailers in India, offers a range of merchandise. It offer products across three major product categories, i.e., apparel, general merchandise and fast-moving consumer goods. As of September 30, 2024, it has a pan-India network of 645 stores across 414 cities in 28 states and two union territories. Our stores are strategically located in Tier 1 cities, Tier 2 cities, and beyond.
Vishal Mega Mart Peers
In the listed space, the company recognises Trent and Avenue Supermarts as its peers.
Industry Overview
The total addressable market for aspirational retail in India is estimated to be ₹68-72 trillion (US$ 820-870 billion) for the calendar year 2023. This market is projected to grow to ₹104-112 trillion (US$ 1,250-1,350 billion) by 2028, reflecting a compound annual growth rate (CAGR) of 9%, according to Redseer report. Within this market, there has been a consistent shift towards organized retail. This shift is driven by several factors, including higher expectations for product quality, a wider range of product assortments, better pricing, especially in fast-moving consumer goods (FMCG), denser urban populations, and significant growth opportunities for organized retailers in the aspirational retail segment.
Vishal Mega Mart Strengths
- The company has built a strong presence in India, serving a rapidly growing consumer base with a diverse product portfolio that balances quality and affordability.
- Its consumer-centric approach has fostered a loyal customer base by offering variety and convenience.
- The company boasts a growing portfolio of 19 own brands, with six brands exceeding ₹5,000 million in sales in FY24. With 645 stores across 414 cities, including Tier 1 and Tier 2, it has a pan-India footprint.
- Leveraging technology, it ensures efficient operations, delivering products to consumers in a cost-effective manner.
- Backed by a professional management team with an average of 21 years of industry experience, the company is well-positioned for continued growth.
Vishal Mega Mart Risks
- The Indian retail market is highly competitive. This intense competition could affect Vishal Mega Mart’s market share and pricing flexibility.
- A slowdown in the economy or a decline in consumer spending, especially in smaller cities, could have a negative impact on Vishal Mega Mart’s revenue growth.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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