Vishal Mega Mart's Rs 8,000-crore IPO opened for public subscription today after garnering Rs 2,400 crore from anchor investors a day earlier on December 10. The highly anticipated public issue of the Gurugram-based supermarket chain is drawing significant attention from investors, with expectations of long-term gains supported by rising per capita income in India and the company's strategic plans to expand into Tier-II cities.
Here is everything you need to know about Vishal Mega Mart IPO before subscribing to the issue:
1) Vishal Mega Mart IPO size, price band: Rs 8,000-crore public issue opened for bidding on December 11, and will close on December 13. The price band for the IPO has been fixed at Rs 74-78 per share.
2) Vishal Mega Mart IPO lot size, bid details: The public issue requires a minimum application size of 190 shares per lot, aggregating to Rs 14,820 for retail investors. The maximum subscription limit for the retail category is at 13 lots, amounting to Rs 192,660. HNIs can bid for a minimum 14 lots totaling Rs 207,480.
3) Vishal Mega Mart IPO OFS: The public issue is entirely an offer-for-sale of 102.56 crore shares by promoter Samayat Services LLP, with no fresh issue of equity shares. Samayat Services LLP -- backed by Kedaraa Capital -- holds 96.55 per cent stake in the Gurugram-based supermart major.
4) About the company: Vishal Mega Mart's product range includes both in-house and third-party brands, covering three key categories -- apparel, general merchandise, and fast-moving consumer goods (FMCG). As of June 30, 2024, it operates 626 Vishal Mega Mart stores across India, along with a mobile app and website.
5) Vishal Mega Mart IPO allotment: Shares of the company are likely to be allotted to the successful bidders on December 16. The official registrar to the issue is KFin Technologies Limited.
6) Vishal Mega Mart listing date: The listing of shares is proposed to take place on both NSE and BSE on December 18.
7) Vishal Mega Mart Key Financials: The company's revenue from operations grew at a robust CAGR of 26.28 percent since FY 2022, with a consistent growth in profitability.
| Year | Revenue from operations |
| FY 2024 | Rs 8,912 crore |
| FY 2023 | Rs 7,586 crore |
| FY 2022 | Rs 5,589 crore |
| Period | EBITDA |
| Apr-Sep 2024 | Rs 668 crore |
| FY 2024 | Rs 1,249 crore |
| FY 2023 | Rs 1,021 crore |
| FY 2022 | Rs 804 crore |
| Period | EBITDA margin |
| Apr-Sep 2024 | 13.27 percent |
| FY 2024 | 14.01 percent |
| FY 2023 | 13.45 percent |
| FY 2022 | 14.38 percent |
| Period | Net profit (after tax) |
| Apr-Sep 2024 | Rs 254 crore |
| FY 2024 | Rs 462 crore |
| FY 2023 | Rs 321 crore |
| FY 2022 | Rs 203 crore |
9) Ongoing investigation by ED: The Enforcement Directorate (ED) has been investigating VMML under the Foreign exchange Management Act (FEMA) and has issued directives to furnish various documents.
10) Key risks: Broking and Investments firm Master Trust highlighted risks including relying entirely on third party vendors for the manufacturing of all products under company’s brands. The report also said that the significant portion of company revenues come from sale of products from stores located in Uttar Pradesh, Karnataka and Assam, and any adverse developments in these states may have an adverse effect on business.
10) Vishal Mega Mart Public Issue Structure
| Investor Category | Allocation |
| QIB | Not more than 50 percent of the offer |
| NII | Not less than 15 percent of the offer |
| Retail | Not less than 35 percent of the offer |
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