Vishal Mega Mart IPO Summary
Mark your calendars! Vishal Mega Mart IPO is opening for bids this Wednesday, 11th Dec 24 and closing on Friday, 13th Dec 2024. Looking to Invest Early. Anchor Investor can apply on Monday, 9th Dec 2024. The price band per share is set between ₹74 and ₹78 per equity share of the face value of ₹10. Vishal Mega Mart IPO is a book-built issue of Rs 800.00 crores. The issue is entirely a fresh issue of 102.56 crore shares. Just a heads up, you’ll need to invest with a minimum of 190 shares for ₹14,820 and in multiples of 190 equity shares thereafter. The floor price is 7.4 times of the face value of the equity shares and the cap price is 7.8 times the face value of the equity share. The allotment for the Vishal Mega Mart IPO is finalized on Monday, December 16, 2024. Vishal Mega Mart IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, December 18, 2024.
Vishal Mega Mart IPO price band is set at ₹74 to ₹78 per share. The minimum lot size for an application is 190 Shares. The minimum amount of investment required by retail investors is ₹14,820. The minimum lot size investment for sNII is 14 lots (2660 shares), amounting to ₹207,480, and for bNII, it is 68 lots (12,920 shares), amounting to ₹1,007,760.
Vishal Mega Mart IPO Quota Allocation
Vishal Mega Mart’s IPO offering will be distributed as follows:
- Up to 50% of the shares will be allocated to Qualified Institutional Buyers (QIBs). These are institutional investors such as banks, mutual funds, and insurance companies.
- A minimum of 15% of the shares will be reserved for Non-Institutional Investors (NII). These typically include high-net-worth individuals (HNIs) or corporate bodies investing more than ₹2 lakh.
- At least 35% of the offering will be available for retail investors. These are individual investors applying for shares with a total value of less than ₹2 lakh.
The allotment of shares for the Vishal Mega Mart IPO is expected to be finalized on Monday, 16th Dec 24. Following this, the company will initiate refunds for unsuccessful applicants on Tuesday, 17th Dec 2024. If your application is successful, the shares are expected to be credited to your demat account on the same day, 17th Dec 2024, after the refunds are processed. Vishal Mega Mart IPO listing on the BSE and NSE is tentatively scheduled for Wednesday, 18th Dec 2024.
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 9,551.75 | 8,506.08 | 8,288.91 | 8,217.98 |
| Revenue | 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 Rs. Crore.
Vishal Mega Mart IPO GMP, Grey Market Premium 2024
Vishal Mega Mart IPO GMP as of 15th Dec 2024 is 19. Stay tuned for the latest IPO GMP numbers of Vishal Mega Mart IPO.
| Vishal Mega Mart IPO GMP Date | GMP | IPO Price | Expected Listing Gain |
| GMP is as on 07 Dec 2024. | 19 | 78.00 | 97 (24%) |
| GMP is as on 08 Dec 2024. | 23 | 78.00 | 101 (29.49%) |
| GMP is as on 09 Dec 2024. | 25 | 78.00 | 103 (32.05%) |
| GMP is as on 10 Dec 2024. | 19 | 78.00 | 97 (24.36%) |
| GMP is as on 11 Dec 2024. | 20 | 78.00 | 98 (25.64%) |
| GMP is as on 12 Dec 2024. | 17 | 78.00 | 95 (21.79%) |
| GMP is as on 13 Dec 2024. | 19 | 78.00 | 97 (24.36%) |
| GMP is as on 14 Dec 2024. | 19 | 78.00 | 97 (24.36%) |
| GMP is as on 15 Dec 2024. | 19 | 78.00 | 97 (24.36%) |
Vishal Mega Mart IPO subscription status
As 13 Dec 2024, 6:00 PM, the book build issue had been booked 10.62 times, the retail portion of the public offer had been booked 1.93 times, and the NII segment had been subscribed 11.69 times and the Qualified Institutional Buyer segment has been subscribed 25.00 times.
About Vishal Mega Mart: A Leading FMCG and Fashion Service.
Vishal Mega Mart are a one stop destination for middle and lower-middle income India. Vishal Mart curate a diverse range of merchandize through our portfolio of own brands and third-party brands to fulfil the aspirational and daily needs of consumers. Vishal Mega Mart offer products across three major product categories, i.e., apparel, general merchandise and fast-moving consumer goods, through a pan-India network of 645 Vishal Mega Mart stores (as of September 30, 2024) and our Vishal Mega Mart mobile application and website.
Vishal Mega Mart were ranked among the three leading offline-first diversified retailers in India, based on retail space as of March 31, 2024. Vishal Mega Mart are also the fastest-growing leading offline-first diversified retailers in India, based on profit after tax growth between Financial Years 2021 and 2024, and among the two leading offline-first diversified retailers in India in terms of same-store sales growth for Financial Year 2024.
Vishal Mega Mart target middle and lower middle-income India. The number of middle-income households in India has increased from approximately 201 million in Calendar Year 2018 to approximately 225 million households (approximately 945 million individuals) in Calendar Year 2023, driven by rapid economic development, growing formalization of employment, and a structural shift from an agrarian-based economy towards manufacturing and services.
The aspirational retail market in India, driven by the consumer desire for products that offer both high-quality and affordability, will remain a significant contributor to India’s retail market. The total addressable market for aspirational retail in India is ₹68-72 trillion (US$820-870 billion) for Calendar Year 2023, and is expected to be ₹104-112 trillion (US$1,250-1,350 billion) by Calendar Year 2028, growing at a CAGR of 9% Within the aspirational retail market, there has been a consistent shift towards organized retail primarily due to increasing baselines for quality, availability of wider assortment, better pricing, denser urban areas, and large whitespace for organized retailers in aspirational retail.
Vishal Mega Mart’s Product Applications
Vishal Mega Mart’s product assortment and consumer-centric approach aims to fulfil the daily and aspirational requirements of our consumers with a focus on variety, affordability, quality and convenience.
Variety: Vishal Mega Mart offer a diverse range of products under three product categories as follows:
- Apparel category comprises exclusively of our own brands with a range of apparel for all members of a family. Our product portfolio includes product ranges across t-shirts, shirts, denim, athletic and leisure wear, night wear, innerwear, western wear, formal wear, and ethnic wear for men, women, children, and infants. We prioritize fashionability, speed-to-market, functionality and feel by identifying latest global and Indian fashion trends and making products of our own brands available at affordable prices.
- General merchandize category comprises our own brand and third-party brand products ranging across home appliances, crockery and utensils, home products and furnishings, toys, stationery, travel products and footwear, among others. The key principles driving our product curation in this category are product innovation and market trends, while maintaining a focus on quality, reliability and affordability.
- Vishal’s fast-moving consumer goods category comprises our own- and third-party brand products across the packaged food, staples and non-food categories. Within this category, we offer food products such as biscuits, savoury snacks (namkeen), noodles, tea, coffee, staples such as mustard oil, soya oil, clarified butter (desi ghee) and spices, and non-food products such as baby diapers, hair oil, sanitary pads and handwash, among others. We aim to make aspirations affordable with a focus on offering a large variety of quality products catering to consumer preferences.
Affordability: Vishal are committed to ensuring that our products are affordable for our consumers and that we are able to meet the needs of our consumers by offering products across multiple price points and pack sizes to allow consumers optionality and an opportunity to up-trade. Leadership in opening price points across several product categories in apparel, general merchandise and fast-moving consumer goods like dresses, jeans, t-shirts, shirts, bedsheets, spin mop, casserole, pet bottle, butter cookies, savory snacks (navratan namkeen), sanitary napkins, oats, fruit juice, noodles across leading offline-first diversified retailers in India, as on April 30, 2024.
Quality: Products sold at Vishal Mega Mart stores are either manufactured for us by vendors located across India or sourced from select third-party brands. For Vishal own brands, our in-house design team identifies the products and their designs based on global and Indian trends and consumer preferences, creates prototypes (where applicable) together with vendors, and then places orders with the vendors for production as per our specifications, quality standards and requirements. Vishal ensures quality of our own brand products by closely monitoring the process of manufacturing and quality control process for our products.
Convenience: Vishal have established a pan-India network of 645 stores across 414 cities in 28 states and two union territories, as of September 30, 2024. Vishal’s stores are located across India in Tier 1 cities, Tier 2 cities and beyond. As of September 30, 2024, Vishal’s Material Subsidiary, Airplaza Retail Holdings Private Limited, operates 643 stores, on a leasehold basis, and our franchisees operate 2 stores, also on a leasehold basis. For convenience of our consumers, Vishal’s stores are located in visible and easily accessible locations across India with consistent store layouts that are easy to navigate.
Vishal Mega Mart Profit Growth
Based on its restated consolidated financial statements, Vishal Mega Mart’s own brands are significant and growing contributors to sales and constituted 72.86%, 71.57%, 71.81%, 70.50% and 70.20% of revenue from operations for the six months period ended September 30, 2024 and 2023, and the Financial Years 2024, 2023 and 2022, aggregating to ₹36,665.57 million, ₹30,197.83 million, ₹63,993.42 million, ₹53,479.79 million and ₹39,228.81 million during six months period ended September 30, 2024 and 2023, and the Financial Years 2024, 2023 and 2022, respectively. Revenue from operations from sales of own brands grew at a CAGR of 27.72% between the Financial Years 2022 and 2024.
Vishal Mega Mart’s Pros & Cons
1. Pros
- The company operates a vast network of 645 stores across 414 cities in 28 states and two Union Territories, as of September 30, 2024.
- For Vishal’s own brands, the company states that the in-house design team identifies products based on both global and local trends, collaborates with vendors to create prototypes, and places orders to ensure production meets its specifications and quality standards.
- Vishal Mega Mart claims to have integrated advanced technology and systems across its operations, ensuring the efficient and timely delivery of both existing and new products to its customers in a cost-effective manner.
- Vishal Mega Mart operates one central distribution centre, one main distribution centre, and 17 regional distribution centres, all strategically located near major demand areas, ensuring efficient delivery and supply chain management.
- Vishal Mega Mart continues to grow its portfolio of brands, adding new products each year. For instance, the company has significantly expanded its ‘Tandem’ brand for home appliances over the last three financial years, now including items like air fryers, garment steamers, egg boilers, beard trimmers, juicers, soundbars, travel speakers, induction cooktops, and vegetable choppers, among others.
- Vishal Mega Mart has observed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 5,588.51 crore in FY22 to Rs 7,586.04 crore in FY23 to Rs 8,911.95 crore in FY24. PAT increased from Rs 202.77 crore in FY22, to Rs 321.27 crore in FY23 to Rs 461.93 crore in FY24.
2. Cons
- This is an offer-for-sale. Therefore, the money mopped up through the share sale will go into the hands of the sellers and not to the company to help it grow.
- The company, its subsidiaries, directors, and promoters, are involved in certain legal proceedings. Any adverse judgments in any of the cases could be detrimental to the company’s business prospects.
- The company does not manufacture any of the products sold in its stores and relies entirely on third-party vendors to produce items under its brands. These vendors are expected to meet strict specifications, quality, design, and manufacturing standards. Any failure on their part could negatively affect the company’s operations and finances.
- Vishal Mega Mart has a significant portion of revenue comes from stores located in Uttar Pradesh, Karnataka, and Assam. Any adverse developments in these states could disrupt operations and negatively impact revenue-generating capabilities.
- The company has received two directives with requests for information from the Enforcement Directorate (ED) to furnish information and documents for its investigation into the workings of the company. Any adverse outcome in the investigation could lead to possible penalties.
- The company has experienced negative cash flows in the past. Any repeat of this could be detrimental to the company’s working.
- As of 30 September 2024, Vishal Mega Mart had contingent liabilities amounting to Rs 60.66 crore. If these liabilities materialise, it could adversely affect the company’s financial condition.
Overall, Vishal Mega Mart’s IPO presents an opportunity for investors to participate in the growth of the Indian FMCG market. However, it is important to weigh the risks and consider the company’s financial performance and competitive landscape before making an investment decision.
Frequently Asked Questions
Q. What is the Bidding Start date of Vishal Mega Mart IPO?
A. Vishal Mega Mart IPO’s Bidding Start date is Wednesday, December 11th 2024.
Q. What is the Bidding End date of Vishal Mega Mart IPO?
A. Vishal Mega Mart IPO’s Bidding End date is Friday, December 13th 2024.
Q. What is the price band of Vishal Mega Mart IPO?
A. Vishal Mega Mart IPO’s Price band is set to 74 to 78 per equity shares.
Q. What is the Lot Size of Vishal Mega Mart IPO?
A. Vishal Mega Mart IPO’s Lot Size is 190 Shares and multiple of 190 shares thereafter.
Q. What is the Share allotment date of Vishal Mega Mart IPO?
A. Vishal Mega Mart IPO’s Shares allotment date is Monday, December 16th 2024.
Q. What is the Share credit date in Demat of Vishal Mega Mart IPO?
A. Vishal Mega Mart IPO’s Shares credit date in Demat is Monday, December 16th 2024.
Q. What is the Listing date of Vishal Mega Mart IPO?
A. Vishal Mega Mart IPO’s Listing date is Wednesday, December 18th 2024.
Disclaimer
The information provided in this article about the Vishal Mega Mart IPO is for informational purposes only and does not constitute financial advice. Finance Gurukul does not recommend investing in any specific securities or investment strategies. It is important to conduct your own research and due diligence, and to consult with a qualified financial advisor before making any investment decisions.
Investing in the stock market involves inherent risks, and investors may lose some or all of their invested capital. Past performance is not necessarily indicative of future results.
