The Vishal Mega Mart IPO was one of the most critical and extensively talked about mainboard IPOs of December 2024. The IPO had a huge issue size of 8,000 crore, strong anchor investing and outstanding institutional demand that saw the retail investors, high-net worth (HNIs) and long-term investors of the Indian market take interest in the IPO. The presence of the company in the offline retail, the value-based pricing model, and the growing financial performance were some of the features that made the company an attractive investment case in the organized retail sector in India. The listing performance of Vishal Mega Mart also confirmed the investor confidence with the stock trading with a strong premium above its issue price.
In this article we will discuss Vishal Mega Mart IPO: Allotment Status, Listing Date, Price and More
Vishal Mega Mart Company Overview
Vishal Mega Mart Limited is a company that was founded in 2001, and has become one of the top value oriented chain of retail outlets in India. The company mainly aims at the middle-income and lower-middle-income families, with inexpensive products in several categories of everyday consumption. It has a range of merchandise in the form of apparel, fast moving consumer goods (FMCG), groceries, home goods, kitchenware and general merchandise which has allowed it to act as a one-stop shopping center to price sensitive consumers. In September 2024, Vishal Mega Mart have 645 stores in 414 cities, which means it can be found not only in metros but also in Tier-II and Tier-III towns. This expansive distribution has allowed the company to enjoy increased consumption in semi-urban and rural India where the value retail is still taking off.
Key Business Highlights
| Particular | Details |
| Year of Incorporation | 2001 |
| Business Model | Offline-first value retail |
| Stores (Sep 2024) | 645 |
| Cities Covered | 414 |
| States & UTs | 28 States + 2 UTs |
| Employees | 16,537 |
| Registered App Users | 6.77 million |
| Delivery Service Coverage | 600 stores in 391 cities |
Vishal Mega Mart IPO Overview: Issue Price, Listing Exchanges
Vishal Mega Mart IPO was a book-building issue that was fully an Offer For Sale (OFS). The IPO didn’t issue new shares, and shareholders—not the company—received the proceeds. Although investors often question an OFS-only IPO, Vishal Mega Mart’s case stood out because the company had a strong balance sheet and solid operating cash flows. The company and its investors showed confidence by pricing the IPO at the higher end of the band.
The IPO was priced at the high side of the price band and it was a sign of confidence by both the company and also the market about the demand and valuation.
| IPO Particular | Details |
| IPO Type | Mainboard Bookbuilding IPO |
| Issue Size | ₹8,000.00 Crore |
| Fresh Issue | Nil |
| Offer For Sale | 1,02,56,41,025 shares |
| Face Value | ₹10 per share |
| Price Band | ₹74 – ₹78 |
| Issue Price | ₹78 per share |
| Listing Exchanges | BSE, NSE |
| Registrar | Kfin Technologies Ltd. |
| Lead Manager | Kotak Mahindra Capital Co. Ltd. |
Vishal Mega Mart IPO Dates and Timeline
The IPO had a strict time schedule, and the investors had enough time to apply, check allotment status, and gearing up to be listed.
| Event | Date |
| IPO Open Date | Wed, Dec 11, 2024 |
| IPO Close Date | Fri, Dec 13, 2024 |
| Allotment Finalization | Mon, Dec 16, 2024 |
| Refund Initiation | Tue, Dec 17, 2024 |
| Shares Credited to Demat | Tue, Dec 17, 2024 |
| Listing Date | Wed, Dec 18, 2024 |
| UPI Mandate Cut-off | 5 PM, Dec 13, 2024 |
Vishal Mega Mart IPO Lot Size and Investment Requirement
The IPO has been designed in such a way that it is affordable to retail investors and at the same time appeal to HNIs. The lowest amounts of retail investment were in a reasonable level, thus making participation wide.
| Investor Category | Lots | Shares | Amount |
| Retail (Min) | 1 | 190 | ₹14,820 |
| Retail (Max) | 13 | 2,470 | ₹1,92,660 |
| S-HNI (Min) | 14 | 2,660 | ₹2,07,480 |
| S-HNI (Max) | 67 | 12,730 | ₹9,92,940 |
| B-HNI (Min) | 68 | 12,920 | ₹10,07,760 |
Vishal Mega Mart IPO Reservation Structure
The issue was allocated using standard SEBI guidelines with one half being allotted to the Qualified Institutional Buyers (QIBs), which indicated the institutional interest of the company
| Category | Shares Offered | Percentage |
| QIB | 51,28,20,512 | 50% |
| NII (HNI) | 15,38,46,154 | 15% |
| Retail (RII) | 35,89,74,359 | 35% |
| Total | 1,02,56,41,025 | 100% |
Vishal Mega Mart IPO Anchor Investor Participation
Vishal Mega Mart increased equity by 2,400 crore before the opening of the IPO, which is an indicator of strong belief among the large institutional investors. Anchor investments tend to dictate the general demand, which in this case, helped a lot in creating market optimism.
| Particular | Details |
| Anchor Bid Date | Dec 10, 2024 |
| Shares Allocated | 30,76,92,307 |
| Amount Raised | ₹2,400 Cr |
| 50% Lock-in Ends | Jan 14, 2025 |
| Remaining Lock-in Ends | Mar 15, 2025 |
Vishal Mega Mart IPO Subscription Performance
The IPO was accompanied by a very high level of demand especially among institutional investors. Retail involvement was average and healthy whereas QIB interest was distinctive.
| Category | Subscription (Times) |
| QIB | 85.11x |
| NII | 15.01x |
| Retail | 2.43x |
| Overall | 28.75x |
More than 42 lakh applications were obtained and the bids were much higher than the number of shares offered, which is indicative of a large number of investors showing interest.
Vishal Mega Mart IPO Financial Performance Analysis
Vishal Mega Mart has recorded steady revenue increase and enhanced profitability in the last few years. Its financial results demonstrate discipline in operations, effective use of inventory, and growing contribution of its own-label.
| Period Ended | Total Income | PAT | Net Worth | Assets |
| Sep 30, 2024 | 5,053.42 | 254.14 | 5,923.74 | 9,551.75 |
| Mar 31, 2024 | 8,945.13 | 461.94 | 5,646.59 | 8,506.08 |
| Mar 31, 2023 | 7,618.89 | 321.27 | 5,180.84 | 8,288.91 |
| Mar 31, 2022 | 5,653.85 | 202.77 | 4,849.93 | 8,217.98 |
In FY24, the company recorded revenue an increase of 17.41 percent and PAT an increase of 43.78 percent, which signifies the improvement in the operational leverage.
Valuation and Key Ratios
| KPI | Value |
| ROCE | 68.76% |
| ROE (RoNW) | 8.18% |
| PAT Margin | 5.18% |
| Price to Book | 6.23 |
| EPS (Post IPO) | ₹1.13 |
| P/E (Post IPO) | 69.19x |
Although the valuation is sold at a premium, it is partly supported by good returns ratios and growth clarity.
Promoters and Shareholding Pattern
| Particular | Details |
| Promoters | Samayat Services LLP, Kedaara Capital Fund II LLP |
| Promoter Holding (Pre IPO) | 96.46% |
| Promoter Holding (Post IPO) | 76.02% |
Vishal Mega Mart IPO Listing Day and Market Performance
Vishal Mega Mart presented itself with a great debut and it showed a listing gain of 40 percent.
| Exchange | Open | High | Low | Last Price |
| BSE | ₹110.00 | ₹115.60 | ₹104.92 | ₹111.95 |
| NSE | ₹104.00 | ₹114.40 | ₹104.00 | ₹111.93 |
Risks and Concerns
In spite of its strong points, there are some challenges that Vishal Mega Mart is facing. Some analysts deemed the IPO valuation to be costly especially against the established peers. The retail business is normally run with thin margins and thus profitability is very sensitive to inflation of costs as well as competitive pressure in terms of pricing. The presence of stiff competition between the organized retail players and the regional chains is also a significant threat factor.
Conclusion
The Vishal Mega Mart IPO could be described as a good mainboard IPO that was backed by a strong institutional demand, good financial results, and the proven business model. Although the valuations are still on the more premium end, the size, coverage and the stable growth of the company makes the company viable to medium- to long-term investment prospects, who can withstand short-term fluctuation.
FAQs
Vishal Mega Mart IPO was a mainboard book-building issue valued at 8000 crore and comprised of 1,02,56,41,025 share of equity which was Offer For Sale.
The IPO was valued at 78 per share and minimum number of shares needed by retail investors was 190 attracting an investment of 14820.
Vishal Mega Mart Listing date on December 18, 2024.
The IPO was over subscribed 28.75 times and Qualified Institutional Buyers were heavily subscribed 85.11 times and the retail category was subscribed 2.43 times.
The IPO was purely Offer For Sale i.e. the company did not get fresh capital in the hands of the people due to the public issue.
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