Vishal Mega Mart IPO was subscribed to a total of 28.75 times on the last day i.e. December 13. The company raised a sum of Rs 8,000 crore from the primary market. The retail investors booked the issue 2.43 times. The allotment of shares was finalised on December 16 by the registrar, Kfin Technologies.
Vishal Mega Mart IPO was opened on December 11. The listing is expected to be on BSE and NSE on December 18. The company’s IPO price band ranged from Rs 74 to Rs 78 per equity share. Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, J.P. Morgan India, and Morgan Stanley India Company are the book-running lead managers of the IPO.
Vishal Mega Mart IPO Allotment Live Updates: About the company
Founded in 2001, Vishal Mega Mart is a hypermarket chain offering a wide variety of products, including apparel, groceries, electronics, and home essentials. The company sells both its own brands and third-party brands to cater to everyday consumer needs. Its product range includes clothing, home furnishings, travel accessories, kitchen appliances, food, non-food items, and staples. Targeting middle and lower-middle-income groups, Vishal Mega Mart operates 645 stores across India (as of September 30, 2024) and reaches customers through its mobile app and website. The company has a presence in 414 cities across 28 states and two union territories.
Vishal Mega Mart IPO Allotment Live Updates: Vishal Mega Mart IPO basic details
The price band for the Vishal Mega Mart IPO has been set at Rs 74 to Rs 78 per share. The minimum lot size for retail investors is 190 shares, requiring an investment of Rs 14,820. For small non-institutional investors (sNII), the minimum investment is 14 lots (2,660 shares), totaling Rs 2,07,480, while for big non-institutional investors (bNII), the minimum is 68 lots (12,920 shares), amounting to Rs 10,07,760.
Vishal Mega Mart IPO Allotment Live Updates: Book running lead managers and registrar for the issue
The book running lead managers for the Vishal Mega Mart IPO are Kotak Mahindra Capital Company Limited, ICICI Securities Limited, Intensive Fiscal Services Private Limited, Jefferies India Private Limited, J.P. Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd. Kfin Technologies Limited is the registrar for the issue.
Vishal Mega Mart IPO Allotment Live Updates: Vishal Mega Mart IPO share allocation
The Vishal Mega Mart IPO offers a total of 71.79 crore equity shares. The issue is divided into different categories, with 35.90 crore shares allocated to retail investors, 20.51 crore shares to qualified institutional buyers (QIB), and 15.38 crore shares to non-institutional investors (NII). Of the NII category, 10.26 crore shares are for bids above Rs 10 lakh (bNII) and 5.13 crore shares for smaller bids (sNII). The anchor investor portion includes 3.08 crore shares, amounting to 30% of the total issue. The overall issue size is Rs 8,000 crore, with the retail category accounting for 35% of the total shares offered.
Vishal Mega Mart IPO Allotment Live Updates: Vishal Mega Mart IPO financials
Vishal Mega Mart, a prominent player in India’s value retail segment, operates 645 stores across 11.49 million sq. ft. of retail space. The company has shown strong growth, with a revenue CAGR of 26 per cent from FY22 to FY24, steady EBITDA margins of 14 per cent, and a balanced product mix: Apparel (44 per cent), FMCG (27 per cent), and General Merchandise (29 per cent).
Vishal Mega Mart IPO Allotment Live Updates: GMP update
As per the latest trends, the company’s shares were trading at a premium of 23.72% in the grey market, indicating a listing at a price of around Rs 96.5 on the bourses. The grey market is an unofficial place to trade shares ahead of listing.
Vishal Mega Mart IPO Allotment Live Updates: Company's financials
Vishal’s revenue grew from Rs 5,588 crore in FY22 to Rs 8,911 crore in FY24 with a CAGR of 26.3%, primarily due to an increase in revenue from existing and new stores. The number of stores has increased to 611 at a CAGR of 10% during the same period.
Vishal Mega Mart IPO Allotment Live Updates: Mehta Equities on IPO
"By looking at the financials showcased a strong growth in Revenue from operations and net profit, as revenue from operations grew by 36% in FY 2023 and 17% in FY 2024 and net profit increased by 58% in FY 2023 and 44% in FY 2024. On valuation parse at the upper band of Rs 78, the issue is asking for a market cap of Rs 35,168 crore. Based on annualised FY 2024 earnings and fully diluted post – IPO paid-up capital, the company is asking a PE of 69.19x which seems the valuations are reasonable looking at its listed peers which are trading at an average 90x-100x," said Rajan Shinde, Research Analyst at Mehta Equities.
Vishal Mega Mart IPO Allotment Live Updates: Objectives of IPO
The company will not receive any proceeds of the offer for sale by the promoter selling shareholder. The promoter selling shareholder will be entitled to the entirety of proceeds of the offer for sale after deducting its portion of the offer related expenses and the relevant
taxes thereon.
Vishal Mega Mart IPO Allotment Live Updates: Motilal Oswal's take on VMML IPO
"Vishal Mega Mart, the 2nd largest offline-first diversified retailer, is well placed to capitalize on the growing middle class population in India. Extensive expansion plans along with focus on diversification, high margin products and operating leverage is likely to bolster revenue growth," said Motilal Oswal in an IPO note.
Vishal Mega Mart IPO Allotment Live Updates: Key strength
The company is a one-stop destination for middle and lower-middle-income India. The number of middle- income households in India has increased from approximately 201 million in Calendar Year 2018 to approximately 225 million households (approximately 945 million individuals) in Calendar Year 2023, driven by rapid economic development, growing formalization of employment, and a structural shift from an agrarian-based economy towards manufacturing and services.
Vishal Mega Mart IPO Allotment Live Updates: Key weakness
Regional Revenue Dependence: A large share of revenue is concentrated in just three states—Uttar Pradesh, Karnataka, and Assam—limiting geographic diversification. Reliance on Price-Sensitive Consumers: With a focus on the lower-income segment, the company's target audience has constrained discretionary spending, making its revenue highly susceptible to economic fluctuations.
Vishal Mega Mart IPO Allotment Live Updates: Lead managers
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, J.P. Morgan India, and Morgan Stanley India Company worked as the lead book-runners of the issue.
Vishal Mega Mart IPO Allotment Live Updates: Anand Rathi on IPO
At the upper price band, the company is assessing its value at a P/E ratio of 67.83x, with an EV/EBITDA of 28.1x and a market capitalisation of Rs 3,516.80 crore following the equity share issuance, resulting in a return on net worth of 8.18%. "We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO," said Anand Rathi Research in an IPO note.
Vishal Mega Mart IPO Allotment Live Updates: Subscription details
The IPO of Vishal Mega Mart was subscribed to a total of 28.75 times. The retail investors booked the issue 2.43 times and NIIs 15 times. The QIBs dominated the subscription race, booking it by more than 85 times.
Vishal Mega Mart IPO Allotment Live Updates: GMP update
The company's shares were fetching a premium of more than 26% in the grey market, indicating a listing at a price of around Rs 98.5 on the bourses. The grey market is an unofficial place to trade shares ahead of listing.
Vishal Mega Mart IPO Allotment Live Updates: About the company
Founded in 2001, Vishal Mega Mart is a hypermarket chain offering a wide range of products including apparel, groceries, electronics, and home essentials. With 645 stores across 414 cities in India (as of September 30, 2024), the company caters to middle and lower-middle-income consumers through its stores, mobile app, and website. It offers both its own and third-party brands in various categories such as clothing, home furnishings, food, and FMCG.
Vishal Mega Mart IPO Allotment Live Updates: Anchor investor details
Vishal Mega Mart's IPO has raised Rs 2,400.00 crore from anchor investors, with the anchor bid date set for December 10, 2024. A total of 30,76,92,307 shares have been offered to anchor investors, with the anchor portion size amounting to Rs 2,400 crore. The lock-in period for 50% of the anchor shares will end on January 15, 2025, while the lock-in period for the remaining shares will conclude on March 16, 2025.
Vishal Mega Mart IPO Allotment Live Updates: Minimum investment to bid
The Vishal Mega Mart IPO allows investors to bid for a minimum of 190 shares, with additional bids in multiples of 190. Retail investors can apply for a minimum of 1 lot (190 shares) for Rs 14,820, and a maximum of 13 lots (2,470 shares) for Rs 1,92,660. For Small HNIs (S-HNI), the minimum bid starts at 14 lots (2,660 shares) for Rs 2,07,480, with a maximum bid of 67 lots (12,730 shares) for Rs 9,92,940. Large HNIs (B-HNI) can apply for a minimum of 68 lots (12,920 shares) for Rs 10,07,760.
Vishal Mega Mart IPO Allotment Live Updates: Basic details of Vishal Mega Mart IPO
The Vishal Mega Mart IPO, which was open for subscription from December 11 to December 13, 2024, is now in the post-issue phase. The face value of each share is Rs 10, and the price band was set between Rs 74 and Rs 78 per share. The lot size for the IPO was 190 shares, with a total issue size of 1,02,56,41,025 shares, aggregating up to Rs 8,000 crore. The entire issue was an offer for sale of 1,02,56,41,025 shares, also aggregating up to Rs 8,000 crore. The IPO is a book-built issue, and the shareholding pre and post-issue will remain unchanged at 4,50,87,19,493 shares.
Vishal Mega Mart IPO Allotment Live Updates: Tentative Schedule
The Vishal Mega Mart IPO is opened on Wednesday, December 11, 2024, and closed on Friday, December 13, 2024. The basis of allotment to be finalized on Monday, December 16, 2024, followed by the initiation of refunds and credit of shares to Demat accounts on Tuesday, December 17, 2024. The listing of shares on the stock exchange is scheduled for Wednesday, December 18, 2024. Investors should note that the cut-off time for UPI mandate confirmation is 5 PM on December 13, 2024.
Vishal Mega Mart IPO Allotment Live Updates: GMP status
Vishal Mega Mart shares are currently trading at Rs 19, pointing out a grey market premium (GMP) of Rs 97, which is a 24.36 per cent increase from the upper end of the IPO price band of Rs 78.
Vishal Mega Mart IPO Allotment Live Updates: IPOs to debut on December 18.
The mainboard IPOs set to list on the BSE on December 18 include Sai Life Sciences, MobiKwik, and Vishal Mega Mart. Additionally, SME IPOs such as Purple United Sales and Supreme Facility Management will also be listed on the same day.
Vishal Mega Mart IPO Allotment Live Updates: 13 IPOs to Open and Debut This Week
As the year wraps up, the primary market is gearing up for a bustling week, with 13 IPOs slated to open between December 16 and December 20. This week will also see several IPOs making their much-anticipated debut on Indian stock exchanges including Vishal Mega Mart, Mobikwik, and Sai Life Sciences
Vishal Mega Mart IPO Allotment Live Updates: Kedaara Capital to reduce stake by 23%
The IPO worth Rs 8,000 crore comprises entirely of an offer for sale. The promoter selling shareholder, Samayat Services (Kedaara Capital) will be offloading 23% of its holding, reducing its stake to 76% post-IPO in the company.
Vishal Mega Mart IPO Allotment Live Updates: Online presence negligible
"Vishal Mega Mart has enabled 600 of its stores for hyperlocal deliveries in 2 hours within an 8-10km radius. The contribution from the online channel is currently negligible, but initial signs have been encouraging, with top-up purchases happening online," said Motilal Oswal in an IPO note.
Vishal Mega Mart is focused on serving a large and fast growing section of the Indian population with a consumer-centric approach resulting in a loyal consumer base and a diverse and growing portfolio of own brands with a pan-India presence along with technology-enabled, systems-driven operations.
Vishal Mega Mart IPO Allotment Live Updates: Bajaj Broking on IPO
"If FY25 annualized earnings are attributed to its post-IPO fully diluted paid-up equity capital, the asking price corresponds to a P/E of 69.03. Based on FY24 earnings, the P/E stands at 75.73, indicating that the issue is aggressively priced," said Bajaj Broking in an IPO note.
Vishal Mega Mart IPO Allotment Live Updates: Anand Rathi Research on IPO
"At the upper price band company is valuing at P/E of 67.83x, with an EV/EBITDA of 28.1x and market cap of Rs 3,516.80 crore post issue of equity shares and return on net worth of 8.18%. We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO," said Anand Rathi Research in a research note.