Vishal Mega Mart Limited is set to launch its IPO. The IPO will open on 11 December 2024 (Wednesday) and close on 13 December 2024 (Friday). This is a book-built issue IPO. Through this issue, the company aims to raise approximately ₹8,000 crores from potential investors.
The IPO consists entirely of an offer for sale of 1,025,641,025 equity shares amounting to ₹8,000 crores. The face value of the shares is ₹10 per share, and the price band is set between ₹74 and ₹78 per share. Investors can bid for a minimum lot size of 190 shares.
IPO Key Highlights
| Category | Detail | Information |
|---|---|---|
| Key Dates | IPO Open Date | December 11, 2024 |
| IPO Close Date | December 13, 2024 | |
| Pricing Information | Face Value | ₹10 per share |
| Price Band | ₹74 to ₹78 per share | |
| Offer Structure | Total Issue Size | 1,025,641,025 shares (amounting up to ₹8,000.00 Cr) |
| Fresh Issue | Not Applicable | |
| Offer for Sale | 1,025,641,025 shares (amounting up to ₹8,000.00 Cr) | |
| Investor Details | Lot Size | 190 Shares |
| Listing Exchange | BSE and NSE | |
| IPO Type | Book Built Issue IPO |
Important Dates to Remember
| Event | Date |
|---|---|
| IPO Opening Date | 11 December 2024 (Wednesday) |
| IPO Closing Date | 13 December 2024 (Friday) |
| Finalisation of Basis of Allotment | 16 December 2024 (Monday) |
| Initiation of Refunds | 17 December 2024 (Tuesday) |
| Credit of Shares to Demat Account | 17 December 2024 (Tuesday) |
| Listing Date | 18 December 2024 (Wednesday) |
What is GMP of Vishal Mega Mart IPO Today?
As of December 14, 2024, the Grey Market Premium (GMP) for the Vishal Mega Mart IPO is ₹19. This indicates that the shares are expected to list at approximately ₹97 per share.
Note: GMP is an unofficial indicator and is based on market speculation; it does not guarantee actual listing performance.
Company Financials
| Period | 30 Sep 2024 (₹ Crore) | 31 Mar 2024 (₹ Crore) | 31 Mar 2023 (₹ Crore) | 31 Mar 2022 (₹ Crore) |
|---|---|---|---|---|
| Total Assets | 9,551.75 | 8,506.08 | 8,288.91 | 8,217.98 |
| Total Revenue | 5,053.42 | 8,945.13 | 7,618.89 | 5,653.85 |
| Total Expense | 4,711.77 | 8,324.18 | 7,188.36 | 5,384.20 |
| Profit After Tax | 254.14 | 461.94 | 321.27 | 202.77 |
| Company’s Net Worth | 5,923.74 | 5,646.59 | 5,180.84 | 4,849.93 |
| Total Reserves & Surplus | 1,390.27 | 1,113.12 | 649.50 | 321.88 |
Vishal Mega Mart Limited has demonstrated consistent growth in its total assets, increasing from ₹8,217.98 crores in FY 2022 to ₹9,551.75 crores as of 30 September 2024. This growth reflects the company’s focus on expanding its operations and enhancing its infrastructure.
The company’s total revenue has shown a strong upward trend, rising from ₹5,653.85 crores in FY 2022 to ₹8,945.13 crores in FY 2024. This highlights Vishal Mega Mart’s ability to capture market opportunities and sustain growth in a competitive retail environment.
Vishal Mega Mart has also significantly improved its Profit After Tax, which has grown from ₹202.77 crores in FY 2022 to ₹461.94 crores in FY 2024.
Company’s Key Metrics (FY 2024)
| Key Performance Indicator | Value |
|---|---|
| Return on Capital Employed (ROCE) | 68.76 |
| Return on Net Worth (RONW) | 8.18% |
| Price to Book Value (P/BV) | 6.23 |
| PAT Margin (%) | 5.18% |
| EBITDA Margin (%) | 14.01% |
| Debt to Equity Ratio | * |
| Net Asset Value (NAV) | ₹12.53 |
| Earnings Per Share (EPS) | ₹1.02 (Basic) |
| Price/Earnings (P/E) Ratio | * |
Lot Size and Application Amount
| Application | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail Investor (Minimum Lot) | 1 | 190 | ₹14,820 |
| Retail Investor (Maximum Lot) | 13 | 2,470 | ₹192,660 |
| Small HNI Investor (Minimum Lot) | 14 | 2,660 | ₹207,480 |
| Small HNI Investor (Maximum Lot) | 67 | 12,730 | ₹992,940 |
| Big HNI Investor (Minimum Lot) | 68 | 12,920 | ₹1,007,760 |
Investor Category-Wise Reservation
| Investor Category | Reservation |
|---|---|
| Shares Reserved for QIB | Not more than 50% of the Net Offer |
| Shares Reserved for Retail Investors | Not less than 35% of the Net Offer |
| Shares Reserved for Non-Institutional Investors | Not less than 15% of the Net Offer |
Net Cash Flow Overview
| Net Cash Flow | For the Period Ended 30 September 2024 (₹ in millions) | FY 2024 (₹ in millions) | FY 2023 (₹ in millions) | FY 2022 (₹ in millions) |
|---|---|---|---|---|
| Net Cash Flow from Operating Activities | 9,918.37 | 4,865.48 | 8,296.70 | 6,355.34 |
| Net Cash Flow from Investing Activities | -6,215.28 | -1,400.75 | -1,300.54 | 1,773.37 |
| Net Cash Flow from Financing Activities | -2,627.67 | -2,794.15 | -6,581.54 | -8,645.34 |
| Net Increase/(Decrease) in Cash and Cash Equivalents | 1,075.42 | 670.58 | 414.62 | -516.63 |
Peer Comparison: EPS, PE Ratio, and Face Value
| Company Name | EPS* Basic (₹) | P/E Ratio | Face Value (₹) |
|---|---|---|---|
| Vishal Mega Mart Limited* | 1.02 | N.A. | 10.00 |
| Avenue Supermarts Limited | 38.99 | 98.23 | 10.00 |
| Trent Limited | 41.82 | 163.59 | 1.00 |
Channel-Wise Revenue Overview
| Particulars | Six Months Ended Sep 30, 2024 (₹ Million) | FY 2024 (₹ Million) | FY 2023 (₹ Million) | FY 2022 (₹ Million) |
|---|---|---|---|---|
| Revenue from Physical Store Network | 49,741.86 | 88,330.93 | 75,424.74 | 55,721.18 |
| Revenue from Online Channel | 519.77 | 588.52 | 205.17 | 8.25 |
| Total Sale of Traded Goods | 50,261.63 | 88,919.45 | 75,629.92 | 55,729.43 |
State Wise Distribution of Stores
| State/Union Territory | Number of Stores | Average Store Size (sq. ft.) | Years Since First Store | Average Lease Term (years) |
|---|---|---|---|---|
| Uttar Pradesh | 111 | 18,035.59 | 23 | 13 |
| Karnataka | 73 | 19,999.94 | 18 | 15 |
| Assam | 42 | 19,984.10 | 19 | 14 |
| Delhi | 35 | 15,703.92 | 21 | 13 |
| Madhya Pradesh | 39 | 16,624.81 | 22 | 13 |
| Punjab | 34 | 15,907.33 | 20 | 12 |
| West Bengal | 32 | 18,261.25 | 19 | 14 |
| Bihar | 33 | 16,966.27 | 18 | 13 |
| Telangana | 41 | 18,166.99 | 18 | 15 |
| Andhra Pradesh | 34 | 18,429.82 | 6 | 15 |
| Uttarakhand | 15 | 18,144.19 | 18 | 13 |
| Odisha | 23 | 15,890.36 | 23 | 14 |
| Himachal Pradesh | 14 | 15,732.17 | 17 | 14 |
| Haryana | 26 | 16,257.17 | 19 | 12 |
| Rajasthan | 19 | 17,516.63 | 22 | 11 |
| Jharkhand | 16 | 16,308.31 | 22 | 14 |
| Jammu and Kashmir | 12 | 16,714.13 | 18 | 15 |
| Chhattisgarh | 14 | 18,432.96 | 18 | 12 |
| Goa | 3 | 21,368.08 | 18 | 12 |
| Manipur | 5 | 22,715.40 | 8 | 16 |
| Nagaland | 5 | 17,545.00 | 17 | 15 |
| Meghalaya | 4 | 19,867.50 | 17 | 12 |
| Arunachal Pradesh | 4 | 20,375.93 | 10 | 15 |
| Tripura | 2 | 19,223.42 | 7 | 15 |
| Maharashtra | 2 | 22,214.50 | 20 | 6 |
| Mizoram | 1 | 23,871.00 | 8 | 15 |
| Kerala | 3 | 11,411.67 | 17 | 15 |
| Tamil Nadu | 1 | 5,500.00 | 17 | 12 |
| Gujarat | 1 | 12,642.00 | 17 | 10 |
| Sikkim | 1 | 14,645.00 | 2 | 15 |
| Total/Average | 645 | 17,481.85 | 17 | 13 |
Number of Employees Across Departments
| Departments | No. of Employees |
|---|---|
| Store Operations | 15,766 |
| Supply Chain Management | 202 |
| Buying and Merchandising | 173 |
| Retail Development | 62 |
| Retail Operations | 111 |
| Accounts and Finance | 58 |
| Human Capital Management | 22 |
| Information Technology | 49 |
| Planning & Allocation | 21 |
| Ecommerce | 28 |
| Legal and Compliance | 18 |
| Marketing | 12 |
| Customer Service | 12 |
| CEO’s Office | 2 |
| Office Administration | 1 |
| Total | 16,537 |
Key Objectives of this Issue
The funds raised through this issue will be used for the following purposes.
- To list the equity shares on stock exchanges to enhance company’s visibility.
- Allowing the promoter to sell shares through an offer for sale.
Positives and Negatives of Company
Positives:
- Diverse Product Portfolio
- Strong Market Presence
- Cost-Efficient Operations
- Customer-Centric Approach
- Experienced Management Team
Negatives:
- The company will not receive any direct financial benefit from the IPO because the proceeds will go to the promoters.
- The company’s operations and success rely heavily on its management team and key personnel.
- A significant portion of the company’s revenue comes from specific states, which may be riskier due to economic or regulatory changes.
- The company depends completely on third-party sellers for its products. it may create problem if there is a disruption in supply chain.
It is always beneficial to read Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) carefully to better understand its financials and growth opportunities before making a decision.
Looking for more IPO reviews? Check out our IPO Dashboard for recent posts on other Main-board IPO & SME IPOs for the latest market updates.
Commonly Asked Questions About This IPO
- What are the opening and closing dates for the Vishal Mega Mart IPO?
The IPO opens on December 11, 2024, and closes on December 13, 2024. - Who are the lead managers for this IPO?
The lead managers are Kotak Mahindra Capital Company Limited, ICICI Securities Limited, Intensive Fiscal Services Private Limited, Jefferies India Private Limited, J.P. Morgan India Private Limited, and Morgan Stanley India Company Private Limited. - Who is the registrar for the Vishal Mega Mart IPO?
The registrar is KFin Technologies Limited. - What is the issue price for the Vishal Mega Mart IPO?
The issue price is set between ₹74 and ₹78 per equity share. - What is the minimum lot size for retail investors in this IPO?
Retail investors can bid for a minimum of 190 shares, amounting to ₹14,820. - What are the main objectives of the IPO?
The IPO aims to facilitate the listing of equity shares, allow promoter shareholders to partially exit, and enhance the company’s market presence. - On which stock exchanges will the shares be listed?
The shares are proposed to be listed on BSE and NSE. - What is the total issue size for the Vishal Mega Mart IPO?
The IPO consists of 1,025,641,025 equity shares, amounting to ₹8,000 crores. - When will the allotment and refund process begin?
Allotment will begin on December 16, 2024, and refunds will start soon after. - When will the shares be credited to the Demat account?
Shares will be credited to investors’ Demat accounts on December 17, 2024. - What is the expected listing date for the IPO?
The shares are expected to list on December 18, 2024.
Note: This article is based on the information received from the company’s official documents, including the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP). For up-to-date information on the Grey Market Premium (GMP) for the Vishal Mega Mart IPO, you may please check our Current GMP, where we will post the latest figures as soon as they are available.
Disclaimer: This article is for educational purposes only. We do not offer any advice on buying or selling securities. Please consult your financial advisor before investing in an IPO or any other securities to make sure that it suits your financial plans and risk tolerance.
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