The Vishal Mega Mart IPO is set to open for subscription on December 11, 2024, and will close on December 13, 2024. This IPO is a book-built issue worth ₹8,000 crore and is entirely an offer for sale. Investors should note that the IPO’s allotment date is expected to be finalized on December 16, 2024, with the listing date tentatively scheduled for December 18, 2024 on both the BSE and NSE.
The allocation for different investor categories is divided as follows: 35% for retail investors, 50% for Qualified Institutional Buyers (QIB), and 15% for High Net-worth Individuals (HNI). From a financial perspective, the company has shown significant growth. Vishal Mega Mart reported revenue of ₹8,945.13 crore in 2024, a notable increase from ₹7,618.89 crore in 2023. Similarly, its profit grew from ₹321.27 crore in 2023 to ₹461.94 crore in 2024, reflecting strong financial performance. Given the company’s robust growth and promising financials, investors are advised to consider this IPO as a potential long-term investment opportunity.
Overview of Contents
Vishal Mega Mart IPO Details
| Details | Information |
|---|---|
| IPO Date | December 11, 2024 to December 13, 2024 |
| Listing Date | December 18, 2024 (Tentative) |
| Face Value | ₹10 per share |
| Price Band | ₹74 to ₹78 per share |
| Lot Size | 190 |
| Total Issue Size | 1,02,56,41,025 shares (aggregating up to ₹8,000.00 Cr) |
| Offer for Sale | 1,02,56,41,025 shares of ₹10 (aggregating up to ₹8,000.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE and NSE |
| Pre-Issue Shareholding | 4,508,719,493 shares |
| Post-Issue Shareholding | 4,508,719,493 shares (no new shares issued as it's entirely an offer for sale) |
Investment Highlights:
- Vishal Mega Mart has reported strong financial growth, with a revenue increase from ₹7,618.89 crore in 2023 to ₹8,945.13 crore in 2024.
- The company’s profitability also saw a healthy rise, from ₹321.27 crore in 2023 to ₹461.94 crore in 2024.
- This IPO is recommended for long-term investors, considering the company’s robust financial performance and market potential.
Vishal Mega Mart IPO Dates
| Event | Date & Details |
|---|---|
| IPO Open Date | Wednesday, December 11, 2024 |
| IPO Close Date | Friday, December 13, 2024 |
| Cut-off Time for UPI Mandate | 5 PM on December 13, 2024 (Ensure UPI mandate is approved to avoid application rejection) |
| Basis of Allotment Finalization | Monday, December 16, 2024 (Investors can check their allotment status online) |
| Initiation of Refunds | Tuesday, December 17, 2024 (Refunds credited for unsuccessful applications) |
| Credit of Shares to Demat Account | Tuesday, December 17, 2024 (Allocated shares transferred to investors' Demat accounts) |
| Listing Date | Wednesday, December 18, 2024 (Shares commence trading on BSE and NSE) |
Additional Notes:
- Application Process: Investors can apply through ASBA (Application Supported by Blocked Amount) or UPI-based payment methods.
- Important Reminder: Ensure to complete the UPI mandate authorization by the cut-off time on December 13, 2024, to confirm your application.
- Allotment Status Check: Investors can check the allotment status online on the registrar’s website or through their broker’s platform from December 16, 2024.
- Refund Process: For non-allotted applicants, refunds will be processed promptly, starting December 17, 2024.
- Listing Benefits: Post-listing on December 18, 2024, investors can trade their allotted shares on both BSE and NSE.
Vishal Mega Mart IPO Lot Size Details
The lot size for the Vishal Mega Mart IPO was fixed at 190 shares. Retail investors could bid for a minimum of one lot (190 shares) and up to 13 lots, while High Net Worth Individuals (HNI) had separate investment categories for small and big applications. Below is the breakdown of minimum and maximum investments for retail and HNI investors based on the lot size and IPO price band.
| Category | 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 Promoter Holding
The promoters of Vishal Mega Mart are Samayat Services LLP and Kedaara Capital Fund II LLP, who hold a significant stake in the company.
Before the IPO, the promoters collectively hold a 96.46% stake in Vishal Mega Mart. Since the IPO is an offer for sale, there will be no issuance of new shares, meaning the company’s equity base will remain unchanged. The promoters will be selling a portion of their holdings to the public through the IPO. This will reduce their stake in the company post-issue, but the exact percentage will depend on the final allotment and the shares sold under the offer for sale.
The high pre-issue shareholding of the promoters reflects their confidence and long-term commitment to the business, which can be reassuring for potential investors. However, the reduction in their stake post-issue will also allow the public to participate in the company’s growth story.
About Vishal Mega Mart IPO
Incorporated in 2001, Vishal Mega Mart is a leading hypermarket chain offering a wide range of products, including apparel, groceries, electronics, and home essentials. Catering primarily to middle and lower-middle-income groups, the company operates 645 stores across 414 cities in 28 states and 2 union territories (as of September 30, 2024).
With an asset-light business model, Vishal Mega Mart leases all its stores and distribution centers, sourcing products from third-party vendors and brands. It also serves customers through its mobile app and website, ensuring a broad reach and convenience.
Vishal Mega Mart IPO Company Financial Report
| Period Ended | Revenue (₹ in Crores) | Expense (₹ in Crores) | Profit After Tax (₹ in Crores) | Assets (₹ in Crores) |
|---|---|---|---|---|
| 2022 | ₹5,653.85 | ₹5,384.20 | ₹202.77 | ₹8,217.98 |
| 2023 | ₹7,618.89 | ₹7,188.36 | ₹321.27 | ₹8,288.91 |
| 2024 | ₹8,945.13 | ₹8,324.18 | ₹461.94 | ₹8,506.08 |
| June 2024 | ₹2,603.98 (Q1 FY24) | ₹2,403.21 (Q1 FY24) | ₹150.15 (Q1 FY24) | ₹9,114.82 (as of June 2024) |
Explanation:
- Revenue: The company has shown consistent growth in revenue, increasing from ₹5,653.85 crore in 2022 to ₹8,945.13 crore in 2024, indicating strong business expansion and market penetration.
- Expenses: Operating expenses have also grown in line with revenue, reflecting the cost of scaling operations and expanding its footprint.
- Profit After Tax (PAT): The company’s profitability has improved significantly, rising from ₹202.77 crore in 2022 to ₹461.94 crore in 2024, showcasing better cost management and operational efficiency.
- Assets: The asset base has steadily increased, with a significant jump to ₹9,114.82 crore by June 2024, indicating robust growth in the company’s operational capacity.
Vishal Mega Mart IPO Anchor Investors Details
Vishal Mega Mart successfully raised ₹2,400 crore from anchor investors ahead of its IPO. The anchor investor bid took place on December 10, 2024, with a total of 30.76 crore shares offered. The allocation for anchor investors is subject to a lock-in period, with 50% of the shares locked for 30 days and the remaining for 90 days. Below are the details of the anchor investor allocation.
| Details | Information |
|---|---|
| Bid Date | December 10, 2024 |
| Shares Offered | 30,76,92,307 |
| Anchor Portion Size (₹ in Crore) | ₹2,400.00 |
| Lock-in Period End Date (50% Shares) | January 15, 2025 |
| Lock-in Period End Date (Remaining 50%) | March 16, 2025 |
Vishal Mega Mart Limited Financial InformationÂ
Vishal Mega Mart Limited has shown impressive financial growth, with revenue increasing by 17.41% and profit after tax (PAT) rising by 43.78% between the financial years ending March 31, 2024, and March 31, 2023. The company’s assets, net worth, and reserves have also seen substantial growth, reflecting its strong operational efficiency and market position. Below is a summary of the company’s financial performance over recent periods.
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets (₹ in Cr.) | 9,551.75 | 8,506.08 | 8,288.91 | 8,217.98 |
| Revenue (₹ in Cr.) | 5,053.42 | 8,945.13 | 7,618.89 | 5,653.85 |
| Profit After Tax (₹ in Cr.) | 254.14 | 461.94 | 321.27 | 202.77 |
| Net Worth (₹ in Cr.) | 5,923.74 | 5,646.59 | 5,180.84 | 4,849.93 |
| Reserves & Surplus (₹ in Cr.) | 1,390.27 | 1,113.12 | 649.50 | 321.88 |
| Total Borrowing (₹ in Cr.) | - | - | 133.50 | 497.41 |
Conclusion
Vishal Mega Mart has emerged as a leading player in the retail sector, catering to the needs of middle and lower-middle-income groups through its extensive network of stores and digital platforms. The company’s consistent financial growth, with a notable increase in revenue and profitability over the years, reflects its strong business model and operational efficiency.
With an asset-light approach and a focus on expanding its presence across India, Vishal Mega Mart is well-positioned for sustained growth. The upcoming IPO provides an opportunity for investors to be part of its growth journey. Given its robust financial performance and market potential, this IPO is an appealing option for long-term investment.
Vishal Mega Mart IPO Valuation – FY2024
The valuation metrics for Vishal Mega Mart IPO provide insights into its financial performance and market positioning. Key parameters such as ROCE, EBITDA margin, and RoNW highlight the company’s operational efficiency and profitability. Below are the details of the valuation metrics for FY2024.
| KPI | Values |
|---|---|
| ROE | -% |
| ROCE | 68.76% |
| EBITDA Margin | 14.01% |
| PAT Margin | 5.18% |
| Debt to Equity Ratio | – |
| Earnings Per Share (EPS) | ₹1.02 (Basic) |
| Price/Earning (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 8.18% |
| Net Asset Value (NAV) | ₹12.53 |
Vishal Mega Mart IPO Registrar
- KFin Technologies Limited
- Phone: +91 40 6716 2222
- E-mail:Â vmm.ipo@kfintech.com
- Website: https://ris.kfintech.com/
Company Address
- Vishal Mega Mart Limited
- Plot No. 184,
- Fifth Floor Platinum Tower,
- Udyog Vihar Phase-1
- Gurugram 122016
- Haryana, India
- Phone: +91 124-4980000
- Email:Â secretarial@vishalwholesale.co.in
- Website: www.aboutvishal.com
FAQs for Vishal Mega Mart IPO
What are the Vishal Mega Mart IPO dates?
The IPO opens for subscription on December 11, 2024, and closes on December 13, 2024.
What is the issue type for this IPO?
It is a Book Built Issue IPO.
 What is the total issue size of the Vishal Mega Mart IPO?
The total issue size is ₹8,000 crores, entirely an Offer for Sale by the promoters.
Who are the promoters of Vishal Mega Mart?
The promoters are Samayat Services LLP and Kedaara Capital Fund II LLP.
 What is the shareholding pattern before and after the IPO?
- Pre-issue shareholding: 96.46%.
- Post-issue shareholding: Will reduce as per the shares sold in the Offer for Sale.
What is the price band and face value of the shares?
The price band is yet to be announced, and the face value is ₹10 per share.
What is the lot size for this IPO?
The lot size will be declared with the price band.
When will the basis of allotment be finalized?
The basis of allotment will be finalized on December 16, 2024.
When will the refunds be initiated?
Refunds for unsuccessful applicants will be initiated on December 17, 2024.
When will shares be credited to investors’ Demat accounts?
Shares will be credited on December 17, 2024.
 When is the listing date for Vishal Mega Mart IPO?
The IPO is scheduled to list on December 18, 2024, on both the BSE and NSE.
How can I apply for the Vishal Mega Mart IPO?
You can apply through ASBA (Application Supported by Blocked Amount) via your bank or through UPI-based payment on supported broker platforms.
What is the retail quota for this IPO?
The retail portion is set at 35%, with 50% allocated to QIBs and 15% to HNIs.
Is Vishal Mega Mart profitable?
Yes, the company has shown consistent growth in revenue and profitability, with a profit of ₹461.94 crores in 2024, compared to ₹321.27 crores in 2023.
Should I apply for this IPO?
Based on the company’s strong financial performance, asset-light model, and market presence, the IPO appears promising for long-term investors. However, investors should consider their financial goals and consult with their advisors.