Vishal Mega Mart IPO: Everything You Need to Know

 

{tocify} $title={Table of Contents}

Vishal Mega Mart IPO: Complete Details and Insights

The Vishal Mega Mart IPO is a highly anticipated public offering from one of India’s most recognized retail chains. Catering to middle- and lower-middle-income consumers, Vishal Mega Mart offers a broad range of products across categories like groceries, apparel, and electronics. Here's an in-depth look at everything you need to know about this IPO, from key dates and price bands to financial performance and investment opportunities.

Key Details of Vishal Mega Mart IPO

 
ParticularsDetails
IPO Size₹8,000 Crores
Issue Type100% Offer for Sale (OFS)
IPO Opening DateDecember 11, 2024
IPO Closing DateDecember 13, 2024
Price Band₹74 to ₹78 per share
Minimum Lot Size190 Shares
Retail Investment Amount₹14,820 (minimum)
sNII Investment Amount₹2,07,480 (minimum for 14 lots)
bNII Investment Amount₹10,07,760 (minimum for 68 lots)
Listing ExchangeBSE, NSE
Listing DateDecember 18, 2024

About Vishal Mega Mart

Incorporated in 2001, Vishal Mega Mart has become one of India’s leading hypermarket chains, offering a variety of products, including groceries, clothing, home essentials, and electronics. The company operates 645 stores across 414 cities in 28 states and two union territories (as of September 30, 2024).

Additionally, Vishal Mega Mart has a growing online presence through its mobile app and website, meeting the needs of tech-savvy consumers.

Financial Performance

Vishal Mega Mart has shown consistent growth, both in revenue and profitability. Here’s a detailed breakdown:
 
Period EndedRevenue (₹ Crores)Profit After Tax (₹ Crores)
30 Sep 20245,053.42254.14
FY 20248,945.13461.94
FY 20237,618.89321.27
FY 20225,653.85202.77
 
Key Insights:
  • Revenue grew by 17.41% in FY 2024 compared to FY 2023.
  • Profit After Tax (PAT) increased significantly by 43.78% during the same period.
  • The company’s robust financial growth reflects its strong position in the retail market.

Vishal Mega Mart IPO Reservation Details

The IPO allocation is divided among different investor categories:
 
Investor CategoryShares Reserved
Qualified Institutional Buyers (QIB)Not more than 50% of the net issue
Retail Individual Investors (RII)Not less than 35% of the net issue
Non-Institutional Investors (NII)Not less than 15% of the net issue

Objects of the IPO

The Vishal Mega Mart IPO is a 100% Offer for Sale (OFS). This means the proceeds will go directly to the Promoter Selling Shareholder, and the company will not receive any funds. The promoter will use the funds for IPO-related expenses and taxes.

Why Invest in Vishal Mega Mart IPO?

Strengths:
  • Widespread Retail Network: A strong presence in 414 cities across India makes Vishal Mega Mart highly accessible.
  • Growing Financial Performance: The company’s revenue and profits have shown significant growth over the past few years.
  • Diverse Product Portfolio: Offers a wide range of products, including groceries, apparel, and home essentials, targeting India’s growing middle class.
  • Established Brand: Known for affordability and quality, the brand enjoys strong consumer trust.
Risks:
  • Intense Competition: Faces competition from organized players like D-Mart and Reliance Retail, as well as local markets.
  • Economic Sensitivity: Fluctuations in consumer spending can impact the company’s performance.
  • Offer for Sale: Since this IPO is entirely an OFS, no proceeds will be used for business growth or expansion.

FAQs About Vishal Mega Mart IPO

1. When does the Vishal Mega Mart IPO open and close?

The IPO opens on December 11, 2024, and closes on December 13, 2024.

2. What is the Vishal Mega Mart IPO price band?

The price band is set at ₹74 to ₹78 per share.

3. What is the minimum investment required for retail investors?

Retail investors can apply for a minimum of 1 lot (190 shares), requiring an investment of ₹14,820.

4. What are the investment requirements for NIIs?

Small Non-Institutional Investors (sNII): Minimum 14 lots = ₹2,07,480.
Big Non-Institutional Investors (bNII): Minimum 68 lots = ₹10,07,760.

5. What is the IPO size of Vishal Mega Mart?

The IPO size is ₹8,000 crores, entirely through an Offer for Sale.

6. When will Vishal Mega Mart shares be listed?

The shares are expected to list on December 18, 2024, on the BSE and NSE.

7. How will the IPO proceeds be utilized?

As the IPO is entirely an Offer for Sale, the proceeds will go to the Promoter Selling Shareholder, and the company will not receive any funds.

Conclusion

The Vishal Mega Mart IPO offers an exciting opportunity to invest in one of India’s largest retail chains, catering to a vast and growing customer base. With strong financials and an extensive retail network, Vishal Mega Mart has carved a significant place in the Indian retail market.

However, investors should weigh the strengths against the risks, especially given that the IPO is entirely an Offer for Sale. Whether you’re a retail investor, sNII, or bNII, this IPO could be worth considering based on your financial goals and risk appetite.

Post a Comment

Previous Post Next Post