Vishal Mega Mart is a leading one-stop destination for middle and lower-middle-income consumers in India. They offer a wide range of merchandise through their portfolio of own brands and third-party brands, catering to the aspirational and daily needs of consumers. The company focuses on variety, affordability, quality, and convenience, offering products in apparel, general merchandise, and fast-moving consumer goods (FMCG). With a pan-India network of 626 stores (as of June 30, 2024) and a mobile application and website, Vishal Mega Mart continues to expand its reach across the country.

The Vishal Mega Mart IPO is a Book Built Issue amounting to ₹8,000 Crores, consisting entirely of an Offer for Sale of 10,256.41 Lakh shares. The subscription period for the IPO opened on December 11, 2024, and will close on December 13, 2024. The allotment is expected to be finalized on December 16, 2024, and the shares will be listed on BSE and NSE, with a tentative listing date set for December 18, 2024.

The price band for the IPO is set at ₹74 to ₹78 per equity share, with a market capitalization of ₹35,168.01 Crores at the upper end of the price band. The lot size is 190 shares, and retail investors are required to invest a minimum of ₹14,820. For High-Net-Worth Individuals (HNIs), the minimum investment is 14 lots (2,660 shares), amounting to ₹2,07,480. The book-running lead managers for the IPO are J.P. Morgan India, Morgan Stanley India, ICICI Securities, Kotak Mahindra Capital, Jefferies India, and Intensive Fiscal Services. Kfin Technologies is the registrar for the issue.

The Grey Market Premium (GMP) for the Vishal Mega Mart IPO is ₹16, suggesting a potential listing gain of 20.84% at the upper price band of ₹78. While the GMP can indicate the demand for the shares, it’s important to note that no real price discovery happens in the grey market. The actual price will be determined when the shares are listed on the exchange.

Vishal Mega Mart IPO Subscription and Anchor Investors
As of December 13, 2024, the IPO was subscribed 27.28 times on its final day of the subscription period. Anchor investors have raised ₹2,400 Crores at the price of ₹78 per share, with a total of 30,76,92,307 equity shares allocated to them.

Vishal Mega Mart IPO Allotment
The allotment date for the Vishal Mega Mart IPO is set for December 16, 2024. Investors can check their allotment status by visiting the registrar’s website. Here’s how to check the status:

• Go to the IPO allotment status page.
• Select Vishal Mega Mart Limited IPO from the dropdown.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to view your allotment status.

Objectives of the IPO
The proceeds from the Offer for Sale will go to the Promoter Selling Shareholders. Vishal Mega Mart will not receive any proceeds from the sale of shares, and the Promoter Selling Shareholder will be entitled to the entirety of the proceeds after deducting related expenses and taxes.

Vishal Mega Mart IPO Review
Vishal Mega Mart has shown impressive financial growth, with revenues from operations of ₹89,451.27 Million for the fiscal year 2024, up from ₹76,188.93 Million in 2023. The company has posted EBITDA of ₹12,817.82 Million and a profit after tax (PAT) of ₹4,619.35 Million for FY 2024. These results reflect the company's solid operational efficiency and growth trajectory.

The pre-issue EPS for Vishal Mega Mart is ₹1.01, and the post-issue EPS is ₹1.02, with the pre-issue P/E ratio at 77.23x and the post-issue P/E ratio at 76.13x. The industry P/E ratio stands at 131x, suggesting that the IPO is reasonably priced relative to industry standards. The company’s Return on Capital Employed (ROCE) for FY24 is 68.76%, and the Return on Equity (RoE) is 8.18%, signaling strong potential for future returns.

Given the company’s robust financial performance, competitive pricing in comparison to its peers, and the strong demand shown by the GMP, we recommend investors to apply for the Vishal Mega Mart IPO for listing gains.

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