Vishal Mega Mart Shares Debut At 41% Premium Over Issue Price
The Vishal Mega Mart IPO comprised only of an offer-for-sale component of shares worth Rs 8,000 crore.
The share price of Vishal Mega Mart Ltd. listed on the BSE on Wednesday at Rs 110 apiece, a premium of 41.03% over the issue price of Rs 78 apiece. The stock listed at Rs 104 per share on the National Stock Exchange, marking a premium of 33.33%.
The issue opened for bidding on Dec. 11 as the hypermarket chain aims to raise Rs 8,000 crore. The offering comprised only of an offer-for-sale component, solely offloaded by promoter Samayat Services LLP. The issue closed on Dec. 13.
It was subscribed 27.28 times on its final day after the maiden issue was fully subscribed on its second day, led by demand from non-institutional investors.
The price band for the IPO was 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.
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.
