Vishal Mega Mart Limited IPO GMP, Price, Date, Details
Vishal Mega Mart is one of the best-known organizations in the Indian retail business, which is established in the year 2001. It is well known for its broad range of products and low prices, targeting the wide range of customers in India. Located in the strategic market, and its healthy financial performance, and a portfolio of well-established brands has made the company receive both investors’ and consumers’ attention. This blog contains information on Vishal Mega Mart including the profile of the firm, the method that it uses to work out things, its previous performance history, and the forthcoming program of launching the initial public offering.
History and Evolution of vISHAL MART
Vishal Mega Mart was started in the year 2001 and stepped into the retail sector with its objective to offer cheapest but quality products to the consumers across India. With its growth years, the company has grown rapidly and has emerged as one of India’s largest hypermarket players. It has 645 stores present in 414 cities, across 28 states and two union territories and reaches nearly 945 million people every year.
This fast track expansion has been, largely, due to the tactical customer-facing strategy , well endowed supply chain and a versatility to be able to cope with the dynamic market needs of India. The company began as just a small retail shop and has grown to a giant retail store yet Vishal Mega Mart Limited has not wavered from offering its customers value for their money.
Business Model and Product Portfolio
Vishal Mega Mart Limited therefore, sells various products in different categories and at a single setting. Its product portfolio includes:
Apparel:
Men, women and kidswear.
Affordable and appealing price point of the branded clothes along with seasonal clothes make it popular amongst savvy and fashionable customers.
General Merchandise:
Clothings, beddings, furniture for home, utensils, travel items, dishes, and shoes.
Functional products, suitable for use by the general population.
Fast-Moving Consumer Goods (FMCG):
Staples, packaged foods, personal care, and household essentials.
High turnover rates and lowering prices are major predictors of the customer’s loyalty.
A key feature of the company is its own brands that are critical for its operations and results. In the financial year FY 2024, 19 of Vishal Mega Mart’s brands crossed ₹1,000 million in sales with six brands independently making sales in excess of ₹5,000 million. of the company through their operations and revenues through the provision of quality products at relatively cheap prices.
Financial Performance
Looking at financial statements of Vishal Mega Mart we can easily comprehend that its operational strategies and business place of the company is strong and healthy. Below are key financial metrics for the six months ending September 30, 2024:
Revenue from Operations: ₹50,325.13 million
Profit After Tax (PAT): ₹2,541.37 million
EBITDA: ₹6,680.34 million
Net Worth: ₹59,237.40 million
Return on Capital Employed (ROCE): 29.77%
Return on Net Worth (RoNW): 4.29%
The company has posted steady organic growth in top-line and bottom-line, high brand value products, operational excellence, and targeted geographical diversification across the tier II & III cities. These markets present a positive growth outlook because of increased disposable incomes and spending on the organized retail store format.
Furthermore, Vishal Mega Mart has continued to forecast the changing trends of the consumer and thus has been able to sustain its competitive advantage despite the highly fragmented market in retailing.
Major strengths of Vishal Mega Mart
- Pan-India Presence:
Currently, Vishal Mega Mart Limited operates more than 645 stores, which spreads across the urban, semi-urban as well as the rural areas.
- Affordable Pricing:
A particular area of strength in the company’s business model based on the value delivered for price paid is important among a big class of Indian consumers.
- Proprietary Brands:
The focus is on more control with the in-house brands, which leads to better margins and customer loyalty.
- Diversified Product Portfolio:
It has a complete seeds concept of grocer containing all type of products that makes it a full package shopping mall.
- Operational Efficiency:
Sophisticated systems for the management of supply chains and inventories have been recognized for the ability to cut on costs and boost the transport of profitability.
Challenges and Competition
Despite its strong position, Vishal Mega Mart faces challenges from:
E-commerce Giants: However, high intensity competition has emerged due to new entrants like Amazon and Flipkart especially in Urban areas.
Peer Retailers: Some other new generation retail stores like D-Mart and Reliance Retail are its major competitors.
Supply Chain Complexities: Indeed working across such a wide network poses some operational complexities.
That is why the company is focusing on the following issues by investing in technology, omnichannel, and supplier partnership.
Vishal Mega Mart IPO GMP , Dates and full Details
Starting its operation in the year 1997, Vishal Mega Mart has recently created a lot of interest in the investment circles through its planned IPO offering. It was planned for December 11 – 13, 2024 The IPO is a new step in the development of the company’s business.
Vishal Mega Mart Limited IPO Details:
- Price Band: ₹74 to ₹78 per share
- Lot Size: For consumer MV 190 shares (Minimum investment: ₹14,820)
- Offer Size: ₹8,000 crore through an Offer for Sale (OFS) to divest 102.56 crore shares
The IPO is led by Kotak Mahindra Capital, ICICI Securities, Jefferies, J.P. Morgan, and Morgan Stanley. Kfin Technologies has been appointed as the registrar to the company.
Vishal Mega Mart IPO GMP Details
IPO Date | December 11, 2024 to December 13, 2024 |
Listing Date | 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 of ₹10 (aggregating up to ₹8,000.00 Cr) |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
Shareholding pre issue | 4,508,719,493 |
Shareholding post issue | 4,508,719,493 |
Vishal Mega Mart IPO Dates and Timeline
IPO Open Date | Wednesday, December 11, 2024 |
IPO Close Date | December 13, 2024, Friday |
Basis of Allotment | December 16, 2024, Monday |
Initiation of Refunds | December 17, 2024, Tuesday |
Credit of Shares to Demat | December 17, 2024, Tuesday |
Listing Date | December 18, 2024, Wednesday |
Cut-off time for UPI mandate confirmation | 5 PM on December 13, 2024 |
Vishal Mega Mart Limited IPO GMP Lot Allotment
Application | Lots | Shares | Amount |
Retail (Min) | 1 | 190 | ₹14,820 |
Retail (Max) | 13 | 2470 | ₹192,660 |
S-HNI (Min) | 14 | 2,660 | ₹207,480 |
S-HNI (Max) | 67 | 12,730 | ₹992,940 |
B-HNI (Min) | 68 | 12,920 | ₹1,007,760 |
Why invest in Vishal Mega Mart IPO ?
Strong Market Presence:
The company has already established good store locations and customer awareness before the growth in India’s organized retail industry.
Consistent Financial Growth:
The president proposed some options to increase the market share of the company’s products and services that strongly indicates high revenue growth and profitability.
Proprietary Brands as Growth Drivers:
This shows that an in-house brand is viable and encourages innovation and more importantly, to meet consumer demands effectively.
Favorable Market Dynamics:
Increasing urban population, higher per capita income, and changing retailing systems are the major favourable factors.
Experienced Leadership Team:
Another factor is that a team with extensive experience in management leads to the adoption of the right strategic decisions and effective management of the company’s operations.
Future Outlook Vishal Mega Mart Limited IPO SHARES
Vishal Mega Mart Limited is poised for sustained growth, driven by:
Expansion into Untapped Markets: A further rise in penetration especially in second and third-tier cities.
Digital Transformation: Closing the gap through the use of omnichannel retailing to improve customers’ shopping experiences.
Focus on Proprietary Brands: As a continuation of the efforts to consolidate the production of its own products.
Moreover, with the issue proceeds the IPO the company can have the opportunity to invest in strong technologies, open new stores and strengthen up the supply chain.
Conclusion
Growth of Vishal Mega Mart Limited from one hypermarket store to a large group of hypermarkets is possible because of its strategic and effective management. Because of the proposed IPO, the company is in the right place to grab investment opportunities that are triggered by the changing retail environment in India.
To the investors, it means that it is a chance to invest in a business with a successful model of operations with rich experience in performance and growth. For customers, Vishal Mega Mart Limited responds to value and convenience coupled with quality thus customers’ preferred shopping destination across the Vishal Mega Mart Limited country.
When Vishal Mega Mart moves to this stage of its growth the question arises can it sustain this growth and remain suitable for this changing retail market.
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FAQ'S
What is the Vishal Mega Mart Limited IPO GMP ?
The Vishal Mega Mart Limited IPO GMP is a public offering of the company Vishal Mega Mart Limited, through which the company allows investors to purchase its shares and be part of its growth journey.
When will the Vishal Mega Mart IPO open for subscription ?
The exact dates for the Vishal Mega Mart IPO on Wednesday , December 11, 2024 . Stay updated to ensure you don’t miss the opportunity.
Is Vishal Mega Mart Limited IPO a good investment ?
The investment potential of the Vishal Mega Mart Limited IPO depends on the company’s fundamentals and market conditions. Study the prospectus and seek expert advice before investing.
What is the lot size for the Vishal Mega Mart IPO ?
Priced in the range of Rs 74-78 per share, the IPO has a lot size of 190 shares, allowing investors to bid for a minimum of 190 shares or in multiples thereof. The subscription period for the IPO will close on Friday, December 13, 2024.
