Vishal Mega Mart IPO Subscribed 1.54 Times On Day Two
The price band for the Vishal Mega Mart IPO has been set in the range of Rs 74 to Rs 78 per share.
Vishal Mega Mart Ltd.'s initial public offering was fully subscribed on its second day, led by demand from non-institutional investors. The issue opened for bidding on Wednesday as the hypermarket chain aims to raise Rs 8,000 crore.
The offering comprises only of the offer-for-sale component of Rs 8,000 crore, solely offloaded by promoter Samayat Services LLP. The maiden issue will close on Dec. 13, 2024.
The price band for the IPO has been set in the range of Rs 74 to Rs 78 per share. The market value at the upper end of the price band is Rs 35,168 crore. The company raised nearly Rs 2,400 crore via allocations to anchor investors, a day before the public offering began for retail investors.
Bids can be made for a minimum lot of 190 shares or in multiples thereof. The shares will be listed on both the National Stock Exchange and the Bombay Stock Exchange.
The issue will be managed by book-running lead managers, including Kotak Mahindra Capital Co., ICICI Securities Ltd., Intensive Fiscal Services Pvt., Jefferies India Pvt., JP Morgan India Pvt., and Morgan Stanley India Co., with KFin Technologies serving as the registrar.
As the Vishal Mega Mart IPO is entirely an OFS, proceeds from the offer will go directly to the selling shareholders.
Vishal Mega Mart Issue Details
Issue opens: Dec. 11.
Issue closes: Dec. 13.
Issue price: Rs 74–78.
Offer for sale: Rs 8,000 crore.
Fresh issue: Nil.
Total issue size: Rs 8,000 crore.
Lot size: Minimum 190 shares, and then in multiples thereof.
Business
Vishal Mega Mart is a fashion-led hypermarket chain, which is supported by Kedaara Capital and Partners Group. The company offers apparel, general merchandise and fast-moving consumer goods through a pan-India network, and Vishal Mega Mart mobile application and website. It particularly caters to middle and lower-middle-income households.
It has a portfolio of its own brands across apparel, general merchandise and FMCG products, and operates a hub-and-spoke distribution model to manage in-store inventory.
In the first half of the current fiscal, the company's revenue jumped 19% to Rs 5,033 crore. Operating income stood at Rs 668 crore, a 17% year-on-year increase, and its margin against the top line fell 26 basis points to 13.27%. Its profit rose 30% to Rs 254 crore.
Vishal Mega Mart IPO Subscription Status: Day 2
The IPO was subscribed 1.54 times, as of 5:00 p.m. on Thursday.
Qualified institutional buyers: 0.48 times or 48%.
Non-institutional investors: 3.84 times.
Retail investors: 1.16 times.
Vishal Mega Mart IPO GMP
The grey market premium of Vishal Mega Mart IPO was Rs 17 as of 3:02 p.m. on Thursday, according to InvestorGain. This implies shares of the company will likely list at Rs 95 apiece, indicating a 21.79% premium to the upper end of the price band.
It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids
