Vishal Mega Mart Limited IPO: Key Details
IPO Dates:
- Price Band: ₹74 – ₹78 per share
- Lot Size: 190 shares
- Face Value: ₹10 per share
- Total Issue Size: ₹8,000 crore
- Offer Type: Offer for Sale (OFS)
- Lead Managers: Axis Capital, ICICI Securities, JM Financial, and Kotak Mahindra Capital
- Registrar: Kfin Technologies Limited
- Listing Exchanges: BSE and NSE
Timeline
| IPO Open Date: | December 11, 2024 |
| IPO Close Date: | December 13, 2024 |
| Basis of Allotment: | December 16, 2024 |
| Refunds: | December 17, 2024 |
| Credit to Demat Account: | December 17, 2024 |
| IPO Listing Date: | December 18, 2024 |
About Company
About Vishal Mega Mart Limited
Vishal Mega Mart Limited is a leading value retail chain in India. It operates a network of stores across various states, offering a wide range of products, including apparel, footwear, general merchandise, and home appliances. The company focuses on providing affordable products to a wide customer base.
Core Business:
- Retail: Vishal Mega Mart’s core business is retail, operating a chain of value retail stores.
- Private Label Products: The company also manufactures and sells its own private label products.
Market Position:
- Vishal Mega Mart is one of the largest value retail chains in India.
- The company has a strong presence in Tier II and Tier III cities.
Future Outlook:
- The Indian retail market is growing rapidly, driven by increasing consumer spending and urbanization.
- Vishal Mega Mart aims to expand its store network and strengthen its supply chain.
- The company may also explore new business opportunities, such as e-commerce and online retail.
Objective
The primary objective of the Vishal Mega Mart Limited IPO is to raise Rs 8,000 crore through an Offer for Sale (OFS). The proceeds from the IPO will go directly to the existing shareholders, who will be selling their shares to the public. The company itself will not receive any direct funds from this IPO.
The main purpose of this IPO is to provide an exit opportunity for existing shareholders and to enhance the liquidity of the stock by listing it on the stock exchanges.
Vishal Mega Mart Limited IPO: Weighing the Pros and Cons
POSITIVE
- Strong Brand Recognition: Vishal Mega Mart is a well-established brand in the Indian retail market, particularly in Tier II and Tier III cities.
- Large Store Network: The company has a wide network of stores across India, providing access to a large customer base.
- Growth Potential: The Indian retail market is growing, and Vishal Mega Mart is well-positioned to capitalize on this growth.
- Diversified Product Offering: The company offers a wide range of products, reducing its reliance on any single category.
NEGATIVE
- Intense Competition: The retail market is highly competitive, with established players and new entrants.
- Economic Downturns: Economic downturns can impact consumer spending and affect the company’s sales.
- Supply Chain Challenges: Maintaining a reliable and efficient supply chain can be challenging.
- Regulatory Changes: Changes in government regulations can impact the retail industry.
So, How Does Vishal Mega Mart Fare in Terms of Financials ?
Financial Review of Vishal Mega Mart Limited
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| 30 Jun 2024 | 5,033 | 2,596 | 254 | 12,148.71 | 11,336.17 | 758.14 |
| 31 Mar 2024 | 8,912 | 1,276 | 462 | 10,665.66 | 9,853.12 | 767.92 |
| 31 Mar 2023 | 7,586 | 1,044 | 321 | 20,054.82 | 19,242.28 | 1,158.61 |
| 31 Mar 2022 | 5,589 | 804 | 203 | 16,856.26 | 16,043.71 | 1,140.03 |
(₹ Crore)
Key Observations:
- Revenue Growth: The company has consistently increased its revenue over the past two years, indicating strong growth and market penetration.
- Profitability: Profit after tax (PAT) has also grown steadily, suggesting improved operational efficiency and cost management.
- Asset Growth: The company has invested in assets, as evidenced by the increase in total assets over the past two years.
- Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
- Debt: Total borrowing has increased, but it remains at a manageable level.
Further Analysis:
To gain a more comprehensive understanding of Vishal Mega Mart Limited’s financial performance, it would be beneficial to analyze the following:
- Profitability Ratios: Calculate gross profit margin, operating profit margin, and net profit margin to assess the company’s efficiency in converting revenue into profit.
- Efficiency Ratios: Analyze inventory turnover ratio and debtor turnover ratio to evaluate the company’s efficiency in managing inventory and collecting receivables.
- Solvency Ratios: Assess debt-to-equity ratio and interest coverage ratio to understand the company’s financial health and debt servicing capacity.
- Comparison with Peers: Benchmark Vishal Mega Mart’s financial performance against other companies in the retail industry.
Vishal Mega Mart IPO Valuation :
| 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 |
SWOT Analysis: Vishal Mega Mart IPO
Strengths
- Strong Brand Recognition: Vishal Mega Mart is a well-established brand in the Indian retail market.
- Large Store Network: The company has a wide network of stores across India, providing access to a large customer base.
- Diversified Product Offering: The company offers a wide range of products, reducing its reliance on any single category.
- Cost-Effective Operations: Vishal Mega Mart focuses on efficient operations to maintain competitive pricing.
Weaknesses
- Competition: The retail market is highly competitive, with both organized and unorganized players.
- Supply Chain Challenges: Maintaining a reliable and efficient supply chain can be challenging.
- Economic Sensitivity: The company’s performance can be impacted by economic downturns.
Opportunities
- Expanding Store Network: The company can expand its store network to reach new markets and customers.
- E-commerce: Leveraging e-commerce to reach a wider customer base and increase sales.
- Private Label Brands: Strengthening its private label brands to improve margins and customer loyalty.
Threats
- Economic Slowdown: A slowdown in the economy can negatively impact consumer spending.
- Rising Input Costs: Increased costs of raw materials and labor can affect profitability.
- Regulatory Changes: Changes in government regulations can impact the retail industry.
By understanding these factors, investors can assess the potential risks and rewards associated with investing in the Vishal Mega Mart Limited IPO.
Competitive Analysis: Vishal Mega Mart Limited
Vishal Mega Mart Limited operates in a highly competitive retail market in India. Key competitors include:
Key Competitors:
- Reliance Retail: A leading retail chain with a diverse range of stores, including supermarkets, hypermarkets, and specialty stores.
- Future Retail: A major retail group with a strong presence in various retail formats, including hypermarkets, supermarkets, and general trade stores.
- Avenue Supermarts (DMart): A leading discount retailer known for its value proposition and private label products.
- Trent: A leading retailer with a focus on premium and lifestyle products.
Areas of Competition:
- Store Network: The number and location of stores are crucial factors in reaching customers.
- Product Range: Companies compete on the breadth and depth of their product offerings, including private label products.
- Pricing Strategy: Competitive pricing and promotional offers are essential to attract customers.
- Supply Chain Efficiency: Efficient supply chain management can reduce costs and improve product availability.
- Customer Experience: Providing a positive shopping experience, including store ambience, customer service, and payment options, is crucial.
By understanding the competitive landscape, investors can assess Vishal Mega Mart’s competitive position and its ability to sustain growth and profitability.
Vishal Mega Mart IPO GMP
- Grey market premium as on 13-12-2024 = ₹14/ Share
Disclaimer:
- IPO Grey Market Premium (Vishal Mega Mart IPO 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.
Vishal Mega Mart IPO
🔴 Live Subscription Status 🔴
13/12/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 21,62,16,215 | 0.03 | 0.48 | 80.75 |
| Non Institutional Investors(NIIs) | 16,21,62,163 | 1.11 | 3.80 | 14.25 |
| Retail Individual Investors(RIIs) | 37,83,78,379 | 0.53 | 1.16 | 2.31 |
| Employees | – | – | – | – |
| Total | 75,67,56,757 | 0.51 | 1.53 | 27.28 |
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