Vishal Mega Mart IPO: Price band set at ₹74-78 per share; check issue details, key dates, more

Vishal Mega Mart IPO price band: The Vishal Mega Mart IPO price band has been fixed in the range of ₹74 to ₹78 per equity share of the face value of ₹10. The Vishal Mega Mart IPO date of subscription is scheduled for Wednesday, December 11, and will close on Friday, December 13. The allocation to anchor investors for the Vishal Mega Mart IPO is scheduled to take place on Tuesday, December 10.

The floor price and the cap price are 7.40 times and 7.80 times the face value of the equity shares. The price to earnings ratio (P/E) based on diluted EPS for fiscal 2024 for the company at the upper end of the price band is 77.23 times and at the lower end of the price band is 73.27 times. The Vishal Mega Mart IPO lot size is 190 equity shares and in multiples of 190 equity shares thereafter.

Vishal Mega Mart IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Vishal Mega Mart IPO basis of allotment of shares will be finalised on Monday, December 16, and the company will initiate refunds on Tuesday, December 17, while the shares will be credited to the demat account of allottees on the same day following refund. Vishal Mega Mart share price is likely to be listed on BSE and NSE on Wednesday, December 18.

Established in 2018, Vishal Mega Mart is a hypermarket chain offering a diverse array of products, including apparel, groceries, electronics, and home essentials.

The company features both its own brands and third-party brands to fulfill the everyday needs of consumers. Its extensive product range includes clothing, general merchandise, and fast-moving consumer goods (FMCG), with offerings in home furnishings, travel accessories, kitchen appliances, food items, non-food products, and staples.

As per the red herring prospectus (RHP), the company’s listed peers are Avenue Supermarts Ltd (with a P/E of 98.23 times), and Trent Ltd (with a P/E of 163.59).

Between the fiscal year that ended on March 31, 2024, and the fiscal year that ended on March 31, 2023, Vishal Mega Mart’s sales grew by 17.41% and its profit after tax (PAT) increased by 43.78%.

Vishal Mega Mart IPO details

The initial public offering (IPO) consists entirely of an offer for sale (OFS) amounting to ₹8,000 crore by Samayat Services LLP, the promoter that holds a 96.46 percent stake in Vishal Mega Mart. At the upper price band of ₹78, the company is expected to have a market capitalization of around ₹36,120 crore.

The lead managers for this IPO include Kotak Mahindra Capital, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India.

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