The initial public offering (IPO) of Vishal Mega Mart Limited, a popular hypermarket chain, is now open for subscription. The IPO has launched on the Indian stock market today, December 11, 2024, and will be available for bidding until December 13, 2024. Here’s a quick guide to everything you need to know about this IPO.
Key Details of Vishal Mega Mart IPO
- Price Band: Price Range: The company has determined a price range of ₹74 to ₹78 per share for its IPO. Investors can place their bids within this range.
- Size of the IPO: Vishal Mega Mart plans to raise ₹8,000 crore through this IPO. The entire issue will be an Offer for Sale (OFS), meaning the company’s existing shareholders will sell their shares in the market, and no fresh capital will be raised.
- Lot Size: Lot Size: Investors have the option to apply for the IPO in specified lot sizes. Each lot will consist of 190 shares of Vishal Mega Mart. This means the minimum amount an investor needs to apply is for 190 shares.
- Subscription Status: Subscription Update: On the first day of bidding, the IPO was subscribed 0.18 times. This means that for every 1 share available for sale, 0.18 shares have been requested. In particular, both the Retail Investors and Non-Institutional Investors (NII) sections have been subscribed 0.25 times each. However, the Qualified Institutional Buyers (QIB) section has not received any bids yet.
- Grey Market Premium (GMP): The grey market premium (GMP) of Vishal Mega Mart’s IPO is currently ₹26. This indicates that the shares are trading at a premium in the grey market. This suggests that investors are willing to pay more for the shares than the issue price, which often signals strong investor interest and potential positive listing gains.
Important Dates to Remember
- IPO Opening Date: December 11, 2024
- IPO Closing Date: December 13, 2024
- Allotment Date: The most likely date for share allotment is December 14, 2024. However, if there is a delay, it may be announced on December 16, 2024.
- Listing Date: The IPO is expected to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 18, 2024.
Investors who are interested in the IPO must apply in lots of 190 shares. The IPO is available for Retail Investors, Non-Institutional Investors (NII), and Qualified Institutional Buyers (QIB). Retail investors, who are individuals applying for less than ₹2 lakh worth of shares, have a separate quota.
Why Should You Consider Applying for the IPO?
Vishal Mega Mart is a well-known brand in India with a large network of hypermarkets. The company has established a strong presence in the retail market, which is expected to continue growing in the coming years. This could be a good opportunity for investors who believe in the potential of the retail sector.
Additionally, the strong grey market premium suggests that the IPO might generate good returns for investors once it is listed on the stock exchanges.
Vishal Mega Mart’s IPO has generated a lot of interest, with a promising grey market premium and a solid brand presence in the retail sector. However, investors should carefully evaluate the IPO’s valuation, the potential risks in the retail market, and their own investment goals before making a decision.
For those who are unsure, it is always a good idea to consult with a financial advisor to make an informed choice.
