Vishal Mega Mart IPO-Complete Overview

The Vishal Mega Mart IPO, a Mainboard IPO with a book-built issue size of ₹8,000 crore, is scheduled from December 11-13, 2024. Founded in 2018, Vishal Mega Mart operates 645 stores across 414 cities in 28 states and 2 union territories, catering primarily to middle- and lower-income groups. The IPO share price is set at ₹74-₹78, and it will be listed on BSE and NSE on December 18, 2024.

Business Model
Vishal Mega Mart adopts an asset-light model, leasing its distribution centers and sourcing products from third-party vendors. Its diverse offerings include apparel, FMCG products, electronics, and home essentials under proprietary and external brands.

Financials
The company’s revenue grew 17.41%, and PAT surged by 43.78% from FY2023 to FY2024. For FY2024, the company reported:

• Total Revenue: ₹8,945.13 Cr

• PAT: ₹461.94 Cr

• Net Worth: ₹5,923.74 Cr

Strengths

• Pan-India presence with a loyal customer base.

• Asset-light model enabling cost efficiency.

• Strong revenue and profit growth.

Weaknesses

• Dependency on third-party vendors.

• Potential risks in vendor contracts and supply chain disruptions.

IPO Details

• Lot Size: 190 shares (₹14,820 minimum investment).

• Lead Managers: Kotak Mahindra, ICICI Securities, Jefferies, and more.

• Reservation: QIB (50%), Retail (35%), NII (15%).

Conclusion
Vishal Mega Mart’s IPO is an opportunity for investors seeking growth potential in the retail sector. While its financials and extensive network are strengths, reliance on third-party vendors poses risks. Investors should assess market conditions before investing.