Vishal Mega Mart IPO

About Vishal Mega Mart IPO

The Initial Public Offer (IPO) comprising of 1,025,641,025 equity shares of ₹10 each (Equity Shares) which is an offer for sale aggregating to ₹8000 crores (the offer). There is no fresh issue in this IPO. The bid opens on Dec 11, 2024 and ends on Friday 13, 2024. The anchor bidding will happen on Dec 10, 2024. The equity shares will be listed on Dec 18, 2024 and refunds will be initiated on Dec 17, 2024.

Objectives of the Vishal Mega Mart IPO

• The primary objective of the IPO is to enable the Promoter Selling Shareholder, Samayat Services LLP, to divest a portion of its shareholding.

• The listing of equity shares is also expected to enhance the company's visibility and brand image.

Anchor investors:

The Anchor Investor Bid/Offer Period shall be one working day before the Bid/Offer Opening Date, i.e., on Tuesday, December 10, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.

Book running lead managers:

Lead Managers to the Issue The Book Running Lead Managers (BRLMs) of the 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
• Morgan Stanley India Company Pvt Ltd

Registrar for the IPO: Kfin Technologies Limited

Industry Overview:

The Indian retail industry, as exemplified by Vishal Mega Mart's operations, is characterized by a shift towards organized retail within the ₹68-72 trillion aspirational retail market, expected to grow at a 9% CAGR to ₹104-112 trillion by 2028. Drivers include growing consumer preference for quality, wider product assortments, and competitive pricing. The sector is supported by urbanization and increasing consumer incomes, with companies leveraging a mix of proprietary and third-party brands to meet diverse consumer needs.

About Vishal Mega Mart Company:

Headquartered in Nalagarh, India, Vishal Mega Mart Limited is a value retail company for the masses. Background:The brand is an Indian fashion retail store founded in 2001, operating a chain of hypermarkets and supermarkets. They have a large variety that includes FMCG, apparel, general merchandise and what not! They cater to the middle and lower-middle income of Indian population looking for value for money brands.

Brief Background of Vishal Mega Mart:

A brief background of Vishal Megamart, its business model, growth trajectory, and market position.

Vishal Mega Mart Strengths

• Strong Brand identity
  By the leveraging of value-conscious consumer base and a trusted store, Vishal MegaMart has created strong brand signatures. They have earned loyalty by reliably stocking inexpensive, quality products and, in the process, ensuring you buy it from them.

• Massive Store Network
  This wide network of many hypermarkets and supermarkets in different areas will help push them ahead with their broad market reach. They can also take advantage of economies of scale and streamline supply chain operations.

• Seasoned Management Team
  Based on the seasoned management team that has extensive knowledge of and experience in the retail sector, their qualities are perfect for this late-stage venture. They have a great insight into the market dynamics and consumer behaviour which guides them to take strategic calls.

Business Model

• Products sales through their physical store network (Primary revenue): Hypermarkets and supermarkets that retails chain across the country.
• Online Sales: They also run an online e-commerce platform to cater amongst other things tothe growing trend of sales shifting online.
• Private label brands — The company has introduced its own private labels across categories which have a higher gross margin in comparison to third-party brands.

Growth Trajectory: Vishal Megamart has shown solid growth in the last year. Revenue for the financial year 2023-24 was ₹8,945.13 crore, up from ₹7,586 crore in 2022-23. Profit before tax was ₹621 crore in 2023-24, up from ₹431 crore in FY2022-23. As of June 2024, the company operated 626 stores, up from the 611 stores in March 2024.

Market Position: Vishal Mega Mart Limited positions itself as a leading player in the value retail segment, catering to the aspirational needs of middle and lower-middle-income India. They have a strong presence in Tier-2 and Tier-3 cities, where organized retail penetration is still relatively low. The company leverages its vast store network, diverse product portfolio, and value pricing strategy to attract a wide customer base. They face competition from both organized retail players like D-Mart and Reliance Retail, as well as traditional unorganized retail formats.

How to check allotment status?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar — Link InTime India Pvt Ltd. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Vishal Mega Mart Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the LinkIntime website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Vishal Mega Mart Ltd from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status