Vishal Mega Mart IPO opens on 11 Dec. Should you subscribe? Know more here.                               The Grey Market Premium of Vishal Megamart IPO is Rs. 13-14. Kostak Price is Rs. 800 and Subject to Sauda is Rs. 1600 Know more.                               Mobikwik IPO opens on 11 Dec. Should you subscribe? Know more here.                               The Grey Market Premium of Mobikwik IPO is Rs. 64-65. Know more.                              

Vishal Mega Mart IPO - Grey Market, GMP & Reviews

IPO Details

Issue Date 11 Dec 2024 - 13 Dec 2024
Issue Size ₹8000 Cr
Issue Price ₹74-78
Market Lot 190 Shares
Shares on Offer 1,025,641,025
Registrar KFintech
GMP ₹13-14
Kostak ₹800
Subject to Sauda ₹1600
Listing Date 18 Dec 2024
Listing Price N/A
Listing Gain% N/A

About Vishal Mega Mart Limited

The Initial Public Offering (IPO) of Vishal Mega Mart is set to open for subscription between December 11 and December 13, 2024, with a price band of ₹74 to ₹78 per share. This IPO involves an Offer for Sale (OFS) worth ₹8,000 crore, making it one of the largest share sales of the year. The listing is expected on December 18, 2024, with shares allocated to anchor investors on December 10 and other allotments finalized by December 16​

In terms of the Grey Market Premium (GMP), it is an unofficial indicator of investor sentiment regarding an IPO before its listing. The GMP for Vishal Mega Mart has shown fluctuations, indicating moderate investor interest. The GMP is influenced by factors like company fundamentals, market conditions, and demand-supply dynamics in the grey market​

The company operates a successful hypermarket chain with a diverse product portfolio ranging from groceries and apparel to home essentials. Its financial performance has been strong, with a 43.78% growth in profit after tax (PAT) and a 17.41% increase in sales for FY2024 compared to the previous year. These factors have drawn comparisons to industry peers such as Avenue Supermarts and Trent, known for their strong retail market positions​

The Vishal Mega Mart IPO has garnered attention for its substantial size, strong business model, and financial performance. With an offer size of ₹8,000 crore, it stands as the fourth-largest IPO of 2024, emphasizing its importance in the Indian capital market landscape. The issue price range of ₹74 to ₹78 per share, with a market capitalization of approximately ₹36,120 crore at the upper price band, reflects the company's valuation and investor interest​

Business Overview and Competitive Edge

Vishal Mega Mart operates as a prominent hypermarket chain in India, providing a wide array of products including groceries, apparel, home essentials, and electronics. It has built a reputation for catering to budget-conscious consumers while maintaining a broad assortment of offerings. This dual focus on affordability and variety has made it a preferred destination for Indian shoppers. The company's ability to balance private labels with third-party brands further strengthens its market positioning, allowing it to cater to diverse consumer preferences​

In terms of financials, Vishal Mega Mart has shown robust growth. Its revenue increased by 17.41% and profit after tax (PAT) surged by 43.78% in FY2024, compared to FY2023. This financial performance highlights the company’s efficiency in capitalizing on the retail sector's growth in India. The company’s P/E ratio ranges between 73.27x and 77.23x, which, while high, aligns with its peers such as Avenue Supermarts (P/E of 98.23x) and Trent (P/E of 163.59x)​

Grey Market Premium Analysis

The Grey Market Premium (GMP) for the Vishal Mega Mart IPO has shown moderate activity, reflecting cautious optimism among investors. GMP is an unofficial metric that gauges the demand and expected premium for IPO shares before their official listing. For Vishal Mega Mart, the GMP trends indicate a potential for modest listing gains, although fluctuations suggest mixed investor sentiment​

Investors use GMP as a barometer to predict listing performance, but it is crucial to understand its limitations. Factors influencing the GMP include market sentiment, the company's fundamentals, and the demand-supply equation in the grey market. While the GMP offers an early glimpse into market reception, it does not guarantee post-listing success​

Risk Factors and Investment Considerations

Despite its strong financials and market presence, Vishal Mega Mart’s IPO comes with certain risks. The company operates in a highly competitive retail sector, facing challenges from both organized players like Reliance Retail and e-commerce giants like Amazon and Flipkart. Furthermore, the high P/E ratio suggests that the stock is priced optimistically, which may pose risks if the company fails to meet growth expectations.

The IPO consists entirely of an Offer for Sale (OFS), meaning that proceeds will go to the selling shareholders rather than being used for business expansion or debt reduction. This could limit the company's ability to use IPO proceeds for growth-focused initiatives, a point that investors might consider cautiously​

The Vishal Mega Mart IPO represents an intriguing opportunity for investors, combining the allure of a large-scale retail operation with strong financial growth. However, the high valuation, competitive landscape, and reliance on an OFS structure warrant careful analysis. For retail investors, the IPO's allocation breakdown ensures accessibility, with 35% reserved for this category, compared to 50% for Qualified Institutional Buyers (QIBs) and 15% for Non-Institutional Investors (NIIs). As the listing date approaches, the IPO's reception in the market will depend heavily on broader market sentiment and investor confidence in the company’s long-term prospects​

Company Promoters

Samayat Services LLP and Kedaara Capital Fund II LLP are the promoters of the Company.

Company Financials

Particulars 31-Mar-24 31-Mar-23 31-Mar-22
Total Assets (In ₹ Millions) 8,506.08 8,288.91 8,217.98
Total Revenue (In ₹ Millions) 8,945.13 7,618.89 5,653.85
Profit After Tax (PAT) (In ₹ Millions) 461.94 321.27 202.77

Grey Market Premium Updates

Date GMP Kostak Subject to Sauda
07 Dec 2024 ₹13-14 ₹800 ₹1600

Strengths & Weaknesses

Strength
Weakness

Vishal Mega Mart Limited IPO Reviews

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Subscription Details

Date & Time QIB NII RII Total
Day 1 - 11 Dec 2024
Day 2 - 12 Dec 2024
Day 3 - 13 Dec 2024

Allotment Status

Please click the link below to check the IPO allotment status.

IPO Allotment Status

Vishal Mega Mart Limited IPO FAQs

  1. When will Vishal Mega Mart Limited IPO open?

    Vishal Mega Mart Limited IPO will open on 11 Dec 2024 and close on 13 Dec 2024.

  2. What is the listing date of Vishal Mega Mart Limited IPO?

    Vishal Mega Mart Limited IPO will list on 18 Dec 2024.

  3. What is the offer price of Vishal Mega Mart Limited IPO?

    The offer price of Vishal Mega Mart Limited IPO is ₹74-78.

  4. What is the lot size of Vishal Mega Mart Limited IPO?

    The lot size of Vishal Mega Mart Limited IPO is 190.

  5. What is the Grey Market Premium (GMP) price of Vishal Mega Mart Limited IPO?

    The Grey Market Premium (GMP) price of Vishal Mega Mart Limited IPO is ₹13-14.

  6. What is the Kostak price of Vishal Mega Mart Limited IPO?

    The Kostak price of Vishal Mega Mart Limited IPO is ₹800.

  7. What is the Subject to Sauda price for Vishal Mega Mart Limited IPO?

    The Subject to Sauda price for Vishal Mega Mart Limited IPO is ₹1600.

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