Vishal Mega Mart Limited IPO to Open on December 11, 2024; Price Band Set at ₹74-₹78 Per Share

Vishal Mega Mart IPO: A Blend of Growth, Sustainability, and Inclusivity, Opens December 11

BILKULONLINE

Ahmedabad, Dec 8: Vishal Mega Mart Limited, a leading offline-first diversified retailer, is launching its Initial Public Offering (IPO) on December 11, 2024, with the subscription period closing on December 13, 2024.

The IPO is priced in the range of ₹74 to ₹78 per share, aiming to raise ₹8,000 crores. The allotment of shares is scheduled for December 16, 2024, and the company’s shares will debut on the BSE and NSE on December 18, 2024.

Company Profile

Operating through 645 stores, online apps, and websites, Vishal Mega Mart caters to aspirational middle-income customers across India.

The company leverages an asset-light hub-and-spoke model supported by 19 distribution centers for efficient inventory management. With a focus on sustainability and inclusivity, Vishal Mega Mart employs differently-abled personnel, promotes eco-friendly packaging, and has earned accolades such as the Helen Keller NCPEDP Award (2019) for its inclusive practices.

Financial Highlights

The company reported a revenue of ₹8,945.13 crores in FY2024, a significant increase from ₹7,618.89 crores in FY2023. Profits also surged to ₹461.94 crores in FY2024, up from ₹321.27 crores in FY2023.

Key Details of the IPO

Promoters: Samayat Services LLP and Kedaara Capital Fund II LLP.
Quota Allocation:
- Retail Investors: 35%
- Qualified Institutional Buyers (QIBs): 50%
- High Net-Worth Individuals (HNIs): 15%
Proceeds: The proceeds will benefit the selling shareholders, with the company not receiving any direct proceeds from the Offer for Sale.

Strengths and Risks

Vishal Mega Mart’s nationwide presence, scalable model, and focus on sustainability position it as a strong contender for long-term investment. However, risks include dependency on third-party vendors, regulatory challenges, and shifting consumer preferences, which could affect profitability and operations.

The IPO has drawn attention as a promising investment for long-term growth, backed by robust financial performance and a strong market presence.

The lead managers for the IPO include Kotak Mahindra Capital, ICICI Securities, Jefferies India, and others. Anchor investor bidding opens on December 10

CEO Vishal Mega Mart, Gunender Kapur, Amit Gupta CFO, , Gaurav Singhvi from ICICI Securities Ltd, Shrenik Surana, Intensive Fiscal Services pvt ltd were in Ahmedabad to interact with the media.