Overview of the Company
Vishal Mega Mart Limited caters primarily to India’s middle and lower-middle-income groups, providing a diverse selection of products that fulfill both daily needs and aspirational desires. The company's product portfolio combines offerings under its own labels with merchandise sourced from third-party brands.
Following an asset-light strategy, the company leases its retail stores and distribution centres, relying on external manufacturers and suppliers for its inventory.
The product range spans three major categories:
- Apparel – Includes clothing and home furnishings.
- General Merchandise – Covers items like travel accessories, kitchenware, and home appliances.
- Fast-Moving Consumer Goods (FMCG) – Comprises food products, essential non-food items, and staples.
As of September 30, 2024, the company manages 645 stores across India, complemented by an online presence via its mobile application and website. Its supply chain is supported by a central distribution hub, a primary distribution centre, and 17 regional centres strategically located near high-demand regions.
Objectives of the IPO
Since this offering is solely an Offer for Sale (OFS), the company itself will not receive any direct financial benefit from the proceeds. Instead, the entire amount raised will go to the selling shareholders, proportionally allocated based on the shares each shareholder sells in the offering.
Promoter Details
The company’s promoters are Samayat Services LLP and Kedaara Capital Fund II LLP. Together, they currently hold a dominant pre-IPO ownership of 96.46% in the company.
Summary of Financial Information:
| Period Ended | 30-Sep-24 | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
|---|---|---|---|---|
| Assets | 9,551.75 | 8,506.08 | 8,288.91 | 8,217.98 |
| Revenue | 5,053.42 | 8,945.13 | 7,618.89 | 5,653.85 |
| Profit After Tax | 254.14 | 461.94 | 321.27 | 202.77 |
| Net Worth | 5,923.74 | 5,646.59 | 5,180.84 | 4,849.93 |
| Reserves and Surplus | 1,390.27 | 1,113.12 | 649.5 | 321.88 |
| Total Borrowing | - | - | 133.5 | 497.41 |
Comparison with Listed Peers:
| Company Name | P/E | P/B | RoE (%)* |
|---|---|---|---|
| Vishal Mega Mart Ltd | 71.00 | 6.00 | 9.00 |
| Avenue Supermarts Ltd | 93 | 12.00 | 15.00 |
| Trent Ltd | 136 | 53 | 44 |
Key IPO Details:
- IPO Dates: 11 to 13 December, 2024
- Price Band: Rs. 74 to Rs. 78 per share
- Lot Size: 190 shares
- Issue Size: Rs. 8000 Crores (100% OFS)
- Retail Quota: 35%
- Listing Date: 18th Dec, 2024
- GMP: 17%+ (for informational purposes only)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
