Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) Detail Review –
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) is set to open for subscription from 11th Dec 2024 to 13th Dec 2024. In this article we will analyze the financials , strengths and weaknesses of the Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO). Keep scrolling below to read more!
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) Overview –
Established in 2001, Vishal Mega Mart is a hypermarket chain that sells a wide range of products like apparel, groceries, electronics, and home essentials.
They own their brands and third-party brands to meet the everyday needs of consumers. The company offers a wide range of products across apparel, general merchandise, and FMCG, including its brands for clothing, home furnishings, travel accessories, kitchen appliances, food, non-food items, and staples.
The company targets middle and lower-middle-income people, through a Pan India network of 645 Vishal Mega Mart stores (as of September 30, 2024) and their Vishal Mega Mart mobile app and website. As of September 30, 2024, the company has a presence across 414 cities in 28 states and two union territories.
The company operates an asset-light business model, leasing all its distribution centers and stores, while its products are manufactured by third-party vendors or sourced from third-party brands.
As of September 30, 2024, their direct local delivery service, managed by their employees, had 6.77 million registered users and was available in 600 stores across 391 cities in India.
The Company Ranked as one of the top two offline-first diversified retailers in India. As of September 30, 2024, they had 16,537 employees.
Their portfolio of own Brands:
- Apparel: Classics, Fashion, Denim, Ethnic
- General Merchandise: Tandem Home Appliances, Home Select, Home Finery
- FMCG: Savory Products, Staples, Home Care
Their Strengths:
- Serving a Large and Growing Section of the Indian Population
- Consumer-Centric Approach Resulting in a Large and Loyal Consumer Base
- Diverse and Growing Portfolio of their Brands across Product Categories
- Pan-India Presence with a Track Record of Successful Store Growth
- Technology Enabled and Systems Driven Operations
- Professional and Experienced Management Team
- Track Record of Delivering Revenue, Profit Growth and Capital Efficiency
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) Synopsis-
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) is set to be open for subscription from 11th Dec 2024 to 13th Dec 2024, offering offer for sale of 102.56 crore shares aggregating to Rs 8000.00 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Wednesday, December 18, 2024.
The total issue size of this IPO amounts to Rs. 8000.00 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 11th Dec 2024 |
| Closing Date | 13th Dec 2024 |
| Lot Size | 190 Shares |
| Face Value | Rs 10 |
| IPO Size | Rs. 8000.00 Cr |
| Fresh Issue | — |
| IPO Price Range | Rs. 74 – 78 |
| Min. Investment | Rs. 14,820 |
| Offer for Sale (OFS) | Rs. 8000.00 Cr |
| Employee Discount | — |
| Basis of Allotment | 16th Dec 2024 |
| Refunds | 17th Dec 2024 |
| Listing Date | 18th Dec 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) Market Lot
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) minimum market lot is 190 shares with ₹14,820 application amount. The retail investors can apply up to 13 lots with 2,470 shares or ₹1,92,660 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 190 | ₹14,820 |
| Retail Maximum | 13 | 2,470 | ₹1,92,660 |
| S-HNI Minimum | 14 | 2,660 | ₹2,07,480 |
| S-HNI Maximum | 67 | 12,730 | ₹9,92,940 |
| B-HNI Minimum | 68 | 12,920 | ₹10,07,760 |
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) Book Running Lead Managers –
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
- ICICI Securities Limited
- Intensive Fiscal Services Private Limited
- Jefferies India Private Limited
- Morgan Stanley India Company Private Limited
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) Registrar to the offer –
The registrar for the Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- 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.
Key Performance Indicator –
The market capitalization of Vishal Mega Mart IPO is Rs 35168.01 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | – |
| ROCE: | 68.76% |
| EBITDA Margin: | 14.01% |
| PAT Margin: | 5.18% |
| Debt to equity ratio: | – |
| Earning 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 |
Financial Status –
Vishal Mega Mart Limited’s revenue increased by 17.41% and profit after tax (PAT) rose by 43.78% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 30 Sept 2024.
The company’s total assets are Rs. 9,551.75 crore.
The company’s total revenue is Rs. 5,053.42 crore.
The company’s PAT is Rs. 254.14 crore.
The company’s net worth is Rs. 5,923.74 crore
| Period Ended | 30 Sept 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Total Assets | 9,551.75 | 8,506.28 | 8,288.91 | 8,217.98 | ||||||||||||||||||||||||||||||||||||
| Revenue from operations | 5,053.42 | 8,945.13 | 7,618.89 | 5,653.85 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 254.14 | 461.94 | 321.27 | 202.77 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 5,923.74 | 5,646.59 | 5,180.84 | 4,849.93 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 1,390.27 | 1,113.12 | 649.50 | 321.88 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | 133.50 | 497.41 | ||||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
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 Vishal Mega Mart Limited 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.
Peers of Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) –
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Income | Financial statements |
|---|---|---|---|---|---|---|---|
| Vishal Mega Mart Limited | 1.02 | 12.53 | 8.18 | 8911.94 Crore | Consolidated | ||
| Avenue Supermarts Ltd | 38.99 | 287.47 | 98.23 | 13.56 | 15.74 | 50,788.83 Crore | Consolidated |
| Trent Ltd. | 41.82 | 104.59 | 163.59 | 39.99 | 37.75 | 12,375.11 Crore | Consolidated |
Dividend Policy
The company has not paid any dividends in the last three fiscals.
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) 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
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) Weakness –
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 Limited IPO (Vishal Mega Mart IPO) Status –
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) allotment status will be available on the KFin Technologies Limited website. Click on this link to get allotment status.
Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) GMP Today –
IPO’s last GMP is ₹25, last updated 10th Dec 2024. With the price band of 78.00, IPO’s estimated listing price is ₹103(cap price + today’s GMP). The expected percentage gain/loss per share is 32.05%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Disclaimer:
- IPO Grey Market Premium (Vishal Mega Mart Limited GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
