The initial public offering (IPO) of Vishal Mega Mart opens for bidding on Wednesday, December 11. The company shall be offering its shares in the range of Rs 74-78 apiece. Investors can apply for a minimum of 190 equity shares and its multiples thereafter. Bidding for the issue concludes on Friday, December 13.
Incorporated In 2018, Vishal Mega Mart is a hypermarket chain that sells a wide range of products like apparel, groceries, electronics, and home essentials. The Gurugram-based company owns its brands and third-party brands to meet the everyday needs of consumers.
Vishal Mega Mart is looking to raise a total of Rs 8,000 crore via its IPO, which is entirely an offer-for-sale (OFS) of up to 1,025.64 crore equity shares by its promoter Samayat Services. The company will not receive any proceeds from the issue. Anchor book for the issue opens on Tuesday, December 10.
Vishal Mega Mart offers a wide range of products across apparel, general merchandise, and FMCG, including its brands for clothing, home furnishings, travel accessories, kitchen appliances, food, non-food items, and staples. It operates an asset-light business model, leasing all its distribution centers and stores, while its products are manufactured by third-party vendors.
The company targets middle and lower-middle-income people, through a Pan India network of 645 Vishal Mega Mart stores (as of September 30, 2024) and their Vishal Mega Mart mobile app and website. As of September 30, 2024, the company has a presence across 414 cities in 28 states and two union territories.
For the period ended on September 30, 2024, Vishal Mega Mart reported a net profit of Rs 254.14 crore with a revenue of Rs 5,053.42 crore. The company's net profit came in at Rs 461.94 crore with a revenue of Rs 8,945.13 crore for the financial year 2023-24.
Vishal Mega Mart has reserved 50 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation. Retail investors will have 35 per cent of reservation in the IPO. The total market capitalization of Vishal Mega Mart shall stand slightly above Rs 35,000 crore.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India and Morgan Stanley India Company are the book running lead managers of the Vishal Mega Mart IPO, while Kfin Technologies is the registrar for the issue. Shares of Vishal Mega Mart shall be listed at both BSE and NSE on December 18, Wednesday.