Vishal Mega Mart is preparing for its initial public offering (IPO), set to open for subscription on December 11, 2024, with an aim to raise approximately ₹8,000 crores. This IPO will be entirely an offer for sale by its promoter, Samayat Services LLP, which currently holds a 96.55% stake in the company. Vishal Mega Mart operates a vast network of 645 stores across India, catering primarily to middle and lower-middle-income consumers with a diverse range of products, including apparel, general merchandise, and fast-moving consumer goods (FMCG).
₹15
₹78
₹104
Expert Opinions
Market sentiment for the Vishal Mega Mart IPO is positive, reflecting increasing investor interest in the retail sector as consumer spending rebounds. Company strengths include a robust operational model with 645 stores across 414 cities, offering a wide range of products from apparel to groceries, which caters to middle and lower-middle-income groups. However, risks and challenges involve intense competition from both traditional retailers and e-commerce platforms, which could pressure margins.
The valuation analysis places the IPO price between ₹74 and ₹78 per share, suggesting a market capitalization of approximately ₹35,000 crores, which appears reasonable given its revenue of ₹8,945 crores for FY24. From a long-term investment perspective, Vishal Mega Mart is well-positioned to benefit from the ongoing growth in organized retail in India.
Investor Considerations
Investors considering the Vishal Mega Mart IPO should assess several critical factors. Company performance and fundamentals are strong, with FY24 revenues of ₹8,912 crore and a net profit of ₹462 crore, indicating robust growth and operational efficiency. The sector outlook for organized retail in India is promising, driven by increasing consumer spending and the expansion of retail networks in tier-2 and tier-3 cities. The IPO valuation is set between ₹74 and ₹78 per share, translating to a market capitalization of approximately ₹35,000 crore.
Growth prospects are enhanced by plans for store expansion and digital transformation initiatives. However, risk factors include intense competition from established players like Reliance Retail and potential economic downturns affecting consumer spending. A long-term investment horizon is advisable, as Vishal Mega Mart is well-positioned to capitalize on the ongoing growth in India’s retail sector, making it an attractive option for investors seeking exposure to this dynamic market.
| Date | GMP | Trend |
|---|---|---|
| 17 Dec 2024 12.09 | ₹15 | --- |
| 16 Dec 2024 17.54 | ₹15 | --- |
| 15 Dec 2024 13.22 | ₹15 | --- |
| 14 Dec 2024 17.12 | ₹15 | --- |
| 13 Dec 2024 11.26 | ₹15 | Down |
| 12 Dec 2024 12.34 | ₹25 | --- |
| 11 Dec 2024 10.50 | ₹25 | --- |
| 10 Dec 2024 11.19 | ₹25 | --- |
| 09 Dec 2024 16.32 | ₹25 | Up |
| 06 Dec 2024 18.31 | ₹15 | Up |
| 05 Dec 2024 15.53 | ₹10 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Vishal Mega Mart’s listing performance. While the GMP of ₹15 predicted a modest premium of 19.23% over the issue price, the stock delivered a stronger gain of 33.33%. With a prediction error of 11.83%, the GMP correctly predicted the positive listing direction but underestimated the magnitude of gains, demonstrating partial reliability as a directional indicator in this case.
Vishal Mega Mart IPO Current GMP is ₹15.
Vishal Mega Mart IPO Expected Returns is 19.23%.
Vishal Mega Mart IPO estimated listing price is ₹93.