Much-awaited Vishal Mega Mart IPO scheduled to open on 11th December 2024. It has been proposed for ₹8,000 cr issue size. The much-awaited Vishal Mega Mart IPO to open for public subscription through December 13. Check out here for an investment chance in one of India’s leading supermart chains: everything you need to know about this important market event.
The Vishal Mega Mart IPO is an Offer for Sale (OFS) by the promoter, Samayat Services LLP. That means no fresh equity shares are being issued, and the proceeds from the IPO will go directly to the selling shareholder. Samayat Services LLP currently holds a 96.55% stake in Vishal Mega Mart, making this a significant move to monetize its holdings.
Important Dates
Anchor Investor Bidding: December 10, 2024
Public Subscription: December 11-13, 2024
Allotment Basis: December 16, 2024
Listing on NSE and BSE: December 18, 2024
The IPO’s price band is yet not announced and market people are waiting for more details about the same.
About Vishal Mega Mart
Image Source – Google / Image By – The Economic Times
Vishal Mega Mart is a huge retailer which operates majorly on the middle and lower-middle-class income brackets of India. It was developed as one-stop shopping destination. The company has three significant categories but operates in a massive array of products under all three: –
Apparel
General Merchandise
FMCG
Retail Footprint
Vishal Mega Mart operates the following as of June 30, 2024:
626 stores in India
Mobile application and website user-friendly
This robust network has made Vishal Mega Mart a household name in India, catering to the everyday needs of millions of consumers.
Indian Retail Market: An Emerging Opportunity
Redseer report indicates that India’s aspirational retail market was at ₹68-72 trillion in 2023. In terms of growth, this is expected to increase with a CAGR of 9% and reach ₹104-112 trillion in 2028. Some of the growth drivers are:
Increasing urbanization
Rising demand for quality products
Organised retail growth, particularly in FMCG and apparel business verticals
Vishal Mega Mart is well placed to benefit from the growth opportunity as it enjoys wide spread and pricing advantage.
Lead Managers to the Issue
The issue of Vishal Mega Mart IPO is managed by a team of highly experienced book-running lead managers comprising of :
Kotak Mahindra Capital Company Ltd
Morgan Stanley India Company Pvt Ltd
Intensive Fiscal Services Pvt Ltd
Jefferies India Pvt Ltd
ICICI Securities Ltd
JP Morgan India Pvt Ltd
It will have KFin Technologies as the registrar for the IPO. It will bring in proper allotment and listing process.
Offer for Sale (OFS): What It Means for Investors
Since the IPO is purely an Offer for Sale, no new funds will be infused into the company. The entire proceeds will be paid out to the promoter, Samayat Services LLP. It is a chance for investors to take a stake in an existing retail brand without equity dilution by way of issuance of new shares.
Regulatory Timeline and Confidential Filing Process
The IPO has undergone a very strict regulatory process:
July 2024: Vishal Mega Mart filed its confidential Draft Red Herring Prospectus (DRHP) with SEBI using the pre-filing route.
September 25, 2024: SEBI approved the confidential DRHP.
October 2024: The updated DRHP (UDRHP-I) was filed, incorporating SEBI’s comments and opened for public review.
Final Step: The UDRHP-II was filed after addressing public comments, paving the way for the IPO launch.
Why Invest in Vishal Mega Mart?
Good Market Footprint: A brand name with 626 stores and a strong online platform.
Range of Products: Consists of essentials and discretionary spends
In-line With Markets Growth Curve: Positioned well in an improving retail environment along with asymptotic consumers upwards
Scalable Business Model: Business model has as yet untouched geographies.
Major Risks
No Fresh Funds: The IPO being an OFS, there would not be any proceeds going into further expanding the business.
Market Competition: Escalating competition from organized and internet players.
Economic Vulnerability: Being a mid-income retailer, its very revenue is susceptible to impact of slowdowns in economics.
Investing in the Vishal Mega Mart IPO will give the investor a stake in one of India’s leading retail chains. In lieu of the fresh issue aversion that calls for lesser direct benefit to the company, the IPO would give public investors a share in a fast-emerging market space. In consideration of the brilliant brand reputation and huge reach, Vishal Mega Mart is well-poised for giving long-term value.
Investors should be cautious about the final price band and must advise their financial advisors to provide their choices of investment to be in accordance with personal goals.
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