Vishal Mega Mart IPO: Price, Date, Overview & GMP

Vishal Mega Mart IPO-Complete Overview 

Vishal Mega Mart IPO a Mainboard IPO is a book-built issue of Rs.8000 crore (* Shares) by Vishal Mega Mart Limited which was founded in 2018. It is a hypermarket chain offering a wide variety of products including apparel, groceries, electronics, and home essentials.

The company has its branding and other brands which will help fulfill the daily needs of customers. The company has product offerings across all areas from apparel and general merchandise to fast-moving consumer goods (FMCG) with its brands in clothing, home furnishings, travel accessories, kitchen appliances, food, non-food items, and staples.

The company targets middle and lower-middle-income customers through a pan India network of 645 Vishal Mega Mart Stores (as of September 30, 2024) and their Vishal Mega Mart mobile app & website. As of September 30, 2024, the company has a presence in 414 cities in 28 states and 2 union territories.

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The company holds an asset-light business model where they lease all their distribution centers and stores and have their products manufactured by third-party vendors or these are sourced from third-party brands.

As of September 30, 2024, their direct local delivery service managed by its employees had 6.77 million registered users and was available in 600 stores in 391 cities across India.

The Company Ranked amongst India's top two diversified offline-first retailers. As of September 30, 2024, they had 16,537 employees.

Their brands with their scopes: 

Apparel: Classics, Fashion, Denim, Ethnic

General Merchandise: Tandem Home Appliances, Home Select, Home Finery 

FMCG: Savory Products, Staples, Home Care

This new IPO is to be launched on 11 December 2024, and the initial public offering of this upcoming IPO will end on 13 December 2024.

 

Vishal IPO Details

The Rs.8000 crore Vishal IPO comprises a wholly offer for sale (OFS) of 1,025,641,025 Shares (Rs.8000 crores). The IPO listing date is on December 18, 2024. Vishal Mega Mart IPO Share price is Rs.74 to Rs.78.

Vishal Mega Mart owner 

Ram Chandra Agarwal

Vishal Mega Mart IPO size

Yet to be announced

Vishal Mega Mart IPO listing price

On the day of listing its listing price will be available

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

The company’s revenue grew by 17.41% and PAT increased by 43.78% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in millions)

 

Project-wise Revenue Bifurcation

(Values in lac)

 

The Objective of the Issue

Proceeds from the Promoter Selling Shareholder's Offer for Sale will not be given to the Company. After subtracting its share of the offer-related costs and applicable taxes, the Promoter Selling Shareholder will be entitled to the whole proceeds of the offer for sale.

 

Peers of Vishal Mega Mart Limited

 

Evaluation

The Vishal Mega Mart Share price is between Rs.74 to Rs.78 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.1.02 from the last year, the resulting P/E ratio is 76.47x.

Considering the weighted EPS of Rs.0.82 for the last three years, the P/E ratio is 95.12x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 130.91x.

 In simple words, the P/E ratio of this IPO (76.47x), compared with the industry’s average P/E of 130.91x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths 

• To serve a large and growing section of the Indian population.

• Consumer-centric and hence a large and loyal consumer base.

• A diverse and growing portfolio of their brands across product categories.

• Pan India presence with a successful store growth record.

• Technology enables system-driven operations.

• Professional with an experienced management team.

• Track records of delivering revenue, profit growth and capital efficiency

 

IPO’s Weaknesses 

• All of the products available in our shops are not manufactured by us. These are procured entirely from third-party vendors who manufacture goods for our various brands as specified and to our quality, design, and manufacturing standards. Such a situation exposes us to certain risks which, if materialized, could adversely affect our business.

• Costs' transmission as a result of the acquisition of products, will ultimately affect the selling prices and profit margins from our products.

• The ability to sign new contracts or extend existing contracts with vendors at fair terms might be hampered when vendors decide to use their manufacturing facilities to supply goods to other retailers, including our competitors, rather than us.

• Production delays and added costs because of the time-consuming necessary action that the new vendors require before commencing with manufacture according to our standard processes and quality control standards.

 

Vishal Mega Mart IPO GMP

 Vishal Mega Mart GMP today is Rs.8 as of 05 December 2024.

Vishal Mega Mart IPO Timetable (Tentative)

The IPO date is from 11 December to 13 December, with IPO allotment on 16 December, and refund initiation on 17 December. The IPO listing date is on 18 December 2024.

 

Vishal Mega Mart IPO Other Details 

Vishal Mega Mart IPO with a face value of Rs.10 per Share offers a total issue size of 1,025,641,025 Shares (Rs.8000 Cr) and it will be listed at BSE and NSE.

Vishal Mega Mart IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (190 Shares) amounting to Rs.14820 and 13 Lots (2470 Shares) amounting to Rs.1,92,660 respectively, while for HNI investors, the minimum Lot is 14 (2660 Shares) amounting to Rs.2,07,480.

IPO Reservation

Promoters and Management of Vishal Mega Mart Ltd. 

• Samayat Services LLP

• Kedaara Capital Fund II LLP
  
  

IPO Lead Managers

• Kotak Mahindra Capital Company Limited.

• ICICI Securities Limited.

• Intensive Fiscal Services Private Limited.

• Jefferies India Private Limited.

• J.P. Morgan India Private Limited.

• Morgan Stanley India Company Pvt Ltd.
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscals.

 

Conclusion

Vishal Mega Mart's IPO offers a promising investment opportunity with its strong financial growth, wide customer base, and extensive pan-India presence. The company operates an asset-light model and focuses on diverse product categories catering to middle and lower-income groups. However, dependence on third-party vendors and potential supply chain challenges pose risks. Investors should evaluate the IPO details and market conditions before making a decision.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP

Click Here To Stay Updated With The Upcoming IPOs.

 

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

The company’s data is taken from the Company’s RHP (Red Herring Prospectus) dated 16 December 2024.

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