The shares of leading players in the retail industry gained up to 2.4 percent after foreign institution investors, Nomura India Investment Fund Mother Fund acquired 3 crore equity shares in the company.
With a market capitalization of Rs 49,483.20 crore, the shares of Vishal Mega Mart Ltd were trading at Rs 109.57 per share, decreasing around 2 percent as compared to the previous closing price of Rs 111.95 apiece.
Reason for rise:-
According to the NSE deal, foreign institution investors, Nomura India Investment Fund Mother Fund acquired 3 crore equity shares at an average price of Rs 108.32 per share in the company, amounting to Rs 324.96 crore.
Footprint:-
With over 560 locations in 129 cities, it provides clients with an accessible and complete shopping experience throughout the country. Vishal Mega Mart’s product assortment includes fashion, home items, technology, and fast-moving consumer products, all of which are meticulously picked to meet the different demands of its customers. Its storefronts, which average 25,000 to 30,000 square feet, are intended to give a pleasant one-stop shopping experience.
IPO Launched:-
Vishal Mega Mart Limited launched its Initial Public Offering (IPO) recently. This IPO is entirely an Offer for Sale (OFS) worth Rs. 8,000 crores. The shares will be listed on the NSE and BSE.
Objectives of the Offer;-
The offer aims to list equity shares on stock exchanges, enhance brand visibility, and provide a public market. Proceeds from the Rs. 8,000 crore offer for sale will entirely benefit the promoter-selling shareholder, with no funds allocated to the company.
Financial analysis:-
The company has observed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 5,588.51 crore in FY22 to Rs 7,586.04 crore in FY23 to Rs 8,911.95 crore in FY24. PAT increased from Rs 202.77 crore in FY22, to Rs 321.27 crore in FY23 to Rs 461.93 crore in FY24.
The EPS stood at Rs. 0.56 in FY24, improved from Rs. 0.43 in FY23, a 30% increase. Despite debt coming down marginally for the last 3 years, debt is still hovering around the Rs. 1,000 crore mark.
Company Profile:-
Vishal Mega Mart is a supermarket brand that provides products across three main categories: apparel, general merchandise, and fast-moving consumer goods (FMCG). These products are available through its network of Vishal Mega Mart stores as well as its mobile application and website.
Written by:- Abhishek Singh
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