The Vishal Mega Mart IPO is one of the most anticipated public offerings of the year, offering investors a chance to own a stake in one of India's leading hypermarket chains. Scheduled to open for subscription between December 11, 2024, and December 13, 2024, this IPO is entirely an Offer for Sale (OFS) worth ₹8,000 crore, making it a notable event in the retail sector.
Key Highlights of Vishal Mega Mart IPO
- IPO Date: December 11-13, 2024
- Price Band: ₹74 to ₹78 per share
- Lot Size: 190 shares
- Minimum Investment: ₹14,820 (for retail investors)
- Issue Size: 1,025.64 crore shares aggregating ₹8,000 crore
- Listing: NSE and BSE (tentative listing date: December 18, 2024)
Vishal Mega Mart Business Overview
Incorporated in 2001, Vishal Mega Mart is a leading hypermarket chain catering to middle- and lower-middle-income groups in India. With a pan-India presence across 414 cities, the company operates 645 stores as of September 30, 2024. It offers a wide range of products, including apparel, groceries, electronics, and home essentials, under its own brands and third-party brands.
Core Strengths:
- Pan-India Reach: Strong presence in 28 states and two union territories.
- Asset-Light Model: Leases distribution centers and stores, ensuring operational efficiency.
- Technology Integration: Supports direct delivery services via its mobile app, with over 6.77 million registered users.
- Consistent Growth: Ranked among the top two offline-first diversified retailers in India.
Vishal Mega Mart IPO Financials
The company has shown robust financial growth, with revenue increasing by 17.41% and PAT growing by 43.78% from FY 2023 to FY 2024.
Vishal Mega Mart IPO Reservation
- Retail Investors: 35% of the net offer
- Non-Institutional Investors (NII): 15% of the net offer
- Qualified Institutional Buyers (QIB): 50% of the net offer
Investment Opportunities
The IPO Price-to-Earnings (P/E) ratio is 69.19x post-issue, making it competitive compared to peers in the retail sector. With a Return on Capital Employed (ROCE) of 68.76% and a PAT margin of 5.18%, the company demonstrates strong operational performance and profitability.
Key Dates to Remember (tentative)
- IPO Opening Date: December 11, 2024
- IPO Closing Date: December 13, 2024
- Basis of Allotment: December 16, 2024
- Refund Initiation: December 17, 2024
- Credit to Demat Accounts: December 17, 2024
- Listing Date: December 18, 2024
Disclaimer -- This article does not provide any recommendation, investors are requested to consult there financial advisor before making any investment.