Vishal Mega Mart IPO opens today, Vishal Mega Mart IPO GMP Live Updates: Vishal Mega Mart’s ₹8,000-crore initial public offering (IPO) opens today at a price band of ₹74-78 per share, closing on December 13. The IPO is a 100% Offer For Sale (OFS) by promoter Samayat Services LLP, which currently holds a 96.55% stake. As an OFS, no proceeds will go to the company. The issue reserves 50% for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs). Ahead of the IPO, Vishal Mega Mart raised ₹2,400 crore from marquee anchor investors, including global funds such as JP Morgan, BlackRock, and Government Pension Fund Global, alongside domestic institutions like SBI MF, HDFC MF, and Kotak Mahindra AMC. With 626 stores across India and a strong digital presence, the supermart reported a net profit of ₹254 crore on revenue of ₹5,032.5 crore for the six months ending September 2024. Leading managers include Kotak Mahindra Capital, ICICI Securities, and Morgan Stanley India.
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- December 11, 2024 09:14
Vishal Mega Mart IPO: Emkay Global Research says the company leads with strong moats in a growing industry
Leader with strong moats in a growing industry – Emkay Global Research
Vishal Mega Mart (VMML) caters to a large and fast-growing TAM (USD430bn; ~10% CAGR), by affordably addressing aspirations of the middle-/lower-income India. Variety and Affordability are key moats, as VMML is a one-stop-shop for Apparel/FMCG/General Merchandise categories, and offers the best affordability with high share of own brands (~72%). VMML aspires to continue delivering strong double-digit growth, mainly helped by low-teen SSG trends and partly via store additions. VMML expects to see retail space CAGR of ~10%, as it currently caters to ~400 cities vs a huge potential of ~1,300 cities (with population above 50K). VMML also has potential to go deeper in existing cities. High store-throughput and lower WC needs ensure best-in-class payback (18-20 months) and generate sufficient cash-flows for pursuing growth. IPO of Rs80bn is entirely OFS, with post-IPO market cap of Rs352bn.
Key risks: Supply overhang on big PE ownership and potential ESOP dilution (4-5%).
- December 11, 2024 08:51
IPO Watch: Vishal Mega Mart’s ₹8,000-cr IPO opens today at ₹74-78
Vishal Mega Mart is all set to launch its ₹8,000 crore IPO today for public at a price band of ₹74-78. The IPO will close on December 13 and the market lot is 190 shares.
The proposed IPO is entirely an Offer For Sale (OFS) of shares by promoter Samayat Services LLP, with no fresh issue of equity shares. Currently, Samayat Services LLP holds 96.55 per cent stake in the Gurugram-based supermart major. As the IPO is an OFS, the company will not receive any fund from IPO proceeds.
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Published on December 11, 2024
