Vishal Mega Mart Limited IPO

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The are a leading diversified retailer catering to middle and lower-middle-income households in India. With a focus on affordability and quality, they curate a wide range of merchandise through a mix of in-house and third-party brands, meeting both the aspirational and daily needs of their customers. Their offerings span three key product categories: apparel, general merchandise, and fast-moving consumer goods (FMCG).

These products are distributed via a robust pan-India network of 645 Vishal Mega Mart stores (as of September 30, 2024) as well as through our mobile application and website.

Industry Trends

The retail market is witnessing a significant shift toward organized retail due to:
i. Higher quality benchmarks.                               ii. Wider product assortments.
iii. Competitive pricing.                                          iv. Increased urbanization.
v. Unexplored opportunities in the organized retail segment.

Consumer-Centric Approach

Their business focuses on meeting the evolving needs of consumers by offering:
i. Variety: A diverse product range that fulfills daily and aspirational needs.
ii. Affordability: Products priced to suit middle and lower-middle income households.
iii. Quality: Emphasis on high standards to meet consumer expectations.
iv. Convenience: Accessible through a widespread physical network and digital platforms.

By combining strategic market positioning with a focus on affordability, quality, and convenience, they aim to remain a preferred destination for aspirational and daily shopping needs across India.

Objects of the Vishal Mega Mart Limited 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.
DRHP of Vishal Mega Mart Limited IPO
RHP of Vishal Mega Mart Limited IPO

Vishal Mega Mart Limited IPO Details:

Open Date: Dec 11 2024
Close Date: Dec 13 2024
Total Shares: 1,025,641,025
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 8,000.00 Cr.
Lot Size: 190 Shares
Issue Price: ₹ 74 - 78 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 18 2024

Promoters And Management:

Gunender Kapur serves as the Managing Director and CEO of the Company. He holds a Bachelor’s degree in Engineering with honors from BITS Pilani and an MBA from the University of Delhi. With over 40 years of experience in management and investments in the consumer and retail sectors, he has held key roles at Hindustan Lever Limited, Unilever Nigeria PLC, Reliance Industries Limited, and TPG Capital. He joined our Board on September 22, 2020. Neha Bansal is the Chairperson and Independent Director of the Company. A commerce graduate from Gargi College, University of Delhi, she is a Chartered Accountant with additional qualifications in valuation and information systems audit. With over 16 years of experience in finance and business administration, she is also the co-founder of Lenskart and was previously associated with Vinod Kumar and Associates. She joined the Board on February 25, 2022. Soumya Rajan is the Independent Director of the Company. A mathematics graduate with honors from St. Stephen’s College, University of Delhi, she brings over 29 years of experience in strategy, finance, and operations. She is the founder and CEO of Waterfield Advisors Private Limited and has previously worked with Standard Chartered Bank. She joined the Board on May 31, 2024.

Financials of Vishal Mega Mart Limited IPO:

Particulars ( in cr ) FY22 FY23 FY24
Number of stores 501 557 611
Same-store sales growth (%) 11.89 25.16 13.57
Revenue 5588 7586 8911
Profit for the year 202 321 461
EBITDA 803 1020 1248
EBITDA margin (%) 14.37% 13.45% 14.01%
Net cash flow from operation 657 635 829
ROCE (%) 156.34 92.16 70.95
Free cash flow 2221.51 2794.29 1770.64
 

Comparison With Peers:

Particulars Trent Limited Avenue Supermarts (DMart) Vishal Mega Mart
Number of Stores (FY24) 787 (559 Zudio, 228 Westside) 365 611
Revenue (₹ Cr) (FY24) 12,375 50,789 8,911
Profit After Tax (₹ Cr) (FY24) 1477 2,536 461
Cash Flow from Operations (FY24 )(₹ Cr) 1349 2746 829
Market Capitalization (₹ Cr) 2,43,500 2,47,640 35000
Price-to-Earnings (P/E) Ratio 183 92.2 75
ROE 27.20% 14.50% 8.20%
 

Recommendation on Vishal Mega Mart Limited IPO:

Review and Recommendation of Vishal Mega Mart IPO by team IZ is 5/10.

Lead Manager of Vishal Mega Mart Limited IPO:

  1. ICICI Securities Limited
  2. Intensive Fiscal Services Private Limited
  3. J.P. Morgan India Private Limited
  4. Jefferies India Private Limited
  5. Kotak Mahindra Capital Company Limited
  6. Morgan Stanley India Company Private Limited

Registrar of Vishal Mega Mart Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Vishal Mega Mart Limited Plot No. 184, Fifth Floor Platinum Tower, Udyog Vihar Phase-1 Gurugram 122016 Phone: +91 124 - 4980000 Email: secretarial@vishalwholesale.co.in Website: https://www.aboutvishal.com/

Discussion on Vishal Mega Mart Limited IPO:

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