Vishal Mega Mart IPO: Date, Details, Review

The supermarket giant Vishal Mega Mart is all set for the upcoming IPO (Initial Public Offering) of raising ₹8,000 crores through a book-built issue. The subscription is open from December 11 to December 13, 2024. 

The IPO is structured entirely as an Offer for Sale (OFS) by the promoter, Samayat Services LLP, with shares priced in the band of ₹74-78 per share. 

Vishal Mega Mart IPO Details

Vishal IPO Date	December 11, 2024 to December 13, 2024
Listing Date	Wednesday, December 18, 2024
Face Value	₹10 per share
Price Band	₹74 to ₹78 per share
Lot Size	190 Shares
Total Issue Size	1,025,641,025 shares(aggregating up to ₹8,000.00 Cr)
Offer for Sale	1,025,641,025 shares (aggregating up to ₹8,000.00 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Share holding pre issue	4,508,719,493
Share holding post issue	Share holding pre-issue

For more information, refer to the Vishal Mega Mart IPO RHP.

Vishal Mega Mart Limited Financials

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ crore)	9,551.75	8,506.08	8,288.91	8,217.98
Revenue (₹ crore)	5,053.42	8,945.13	7,618.89	5,653.85
Profit After Tax (₹ crore)	254.14	461.94	321.27	202.77
Net Worth (₹ crore)	5,923.74	5,646.59	5,180.84	4,849.93
Reserves and Surplus (₹ crore)	1,390.27	1,113.12	649.50	321.88

Vishal Mega Mart IPO Objectives

The updated draft red herring prospectus (UDRHP) states that the planned IPO is only an offer for sale (OFS) of shares by promoter Samayat Services LLP, with no new issuance of equity shares. 

This means the existing owner/promoter (Samayat Services LLP) is selling their shares to the public. They’re essentially reducing their ownership stake in the company by selling some of their existing shares. The company itself is not creating or issuing any new shares to raise funds. This means the proceeds from the IPO will go directly to the selling shareholders (Samayat Services LLP) rather than to the company’s treasury.

Think of it as a store where the owner is selling their ownership stake to multiple buyers. The store itself doesn’t get any money—only the original owner receives payment (minus selling costs and taxes). The store continues to operate as before, just with new partial owners.

The key difference between this and a traditional IPO is that in many IPOs, companies issue new shares to raise capital for business expansion, debt repayment, or other corporate purposes. Here, it’s simply a case of the existing owner monetising their investment while providing public investors an opportunity to own shares in the company.

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About Vishal Mega Mart Limited

Established in 2001, Vishal Mega Mart is a network of hypermarkets that offers a variety of goods, including groceries, electronics, clothing, and household necessities.

To satisfy the daily demands of their customers, they distribute both their own and third-party brands. The company’s brands for clothing, home furnishings, travel accessories, kitchen appliances, food, non-food items, and staples are among its many offerings in the areas of apparel, general retail, and fast-moving consumer goods.

The company operates in 414 cities across 28 states and two union territories as of September 30, 2024.

• The company has established itself by serving a large and growing section of the Indian population, particularly focusing on the expanding middle class. Their strategic positioning allows them to capture the increasing consumer spending power, especially in Tier 2 and 3 cities. 

• Their pan-India presence and successful track record of store growth showcase their operational excellence. The company has demonstrated expertise in identifying and entering new markets while maintaining a consistent store expansion strategy.

• Their integrated approach includes automated supply chain management, modern warehouse systems, and a strong e-commerce presence, creating a truly omnichannel experience for customers.

• The professional and experienced management team brings extensive retail industry expertise to the table. 

• The company has consistently shown strong profit margins and efficient working capital management, resulting in healthy returns on investment.

These combined strengths create significant competitive advantages that position the company for continued success. 

Also read: What is Share Valuation? Definition, Methods, Example

Conclusion:

Vishal Mega Mart’s IPO represents a significant milestone in the company’s 23-year journey in Indian retail. The company’s strong financial performance, with revenues of ₹8,945.13 crores in FY24 and a consistent profit growth trajectory, demonstrates its robust business model.

While the IPO proceeds will go to the selling shareholder rather than the company, the public listing will provide investors an opportunity to participate in India’s growing organised retail story. 

Apply for the Vishal Mega Mart IPO here.

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