The Vishal Mega Mart IPO has made its debut in the Indian stock market, becoming available for subscription starting Wednesday, December 11, 2024. This eagerly awaited public offering will be open for bids until Friday, December 13, 2024.
IPO Price Band and Size
Vishal Mega Mart has set the IPO price band between ₹74 and ₹78 per share. The company aims to raise ₹8,000 crore through this IPO, which is entirely an Offer for Sale (OFS). This means the existing shareholders are selling their stakes, and no fresh capital will be raised.
IPO Lot Size
For those interested in applying, the IPO requires bidders to place orders in lots of 190 shares. This makes the minimum investment for one lot range between ₹14,060 and ₹14,820, depending on the final price.
IPO Subscription Status
By the end of the second day, the IPO received subscriptions amounting to 0.89 times its offered shares. The Retail Investor category saw a subscription of 0.80 times, while the Non-Institutional Investors (NII) segment showed strong interest, with bids reaching 2.22 times the reserved shares. However, the Qualified Institutional Buyers (QIBs) segment has been less enthusiastic so far, with just 0.04 times subscription.
The grey market is witnessing significant interest in Vishal Mega Mart shares. Market analysts report that the shares are trading at a ₹20 premium above the upper price band of ₹78. This indicates a possible listing gain of over 25% if the GMP trends remain consistent until the shares are listed on the stock exchanges.
Key Dates to Remember
Here are some important dates to keep in mind for the Vishal Mega Mart IPO:
- IPO Closing Date: Friday, December 13, 2024.
- Share Allotment Date: Tentatively Saturday, December 14, 2024. If delayed, it may extend to December 16, 2024.
The shares are scheduled to be listed on the BSE and NSE on Tuesday, December 18, 2024.
Vishal Mega Mart is a leading hypermarket chain in India with a strong presence across the country. Its diverse revenue streams from groceries, general merchandise, and electronics make it an attractive player in the retail market. However, there are some risks to consider, including high competition from big players like Reliance Retail and D-Mart, and the company’s high debt levels, which could affect its profitability.
While the grey market premium suggests potential gains, it is essential to consider your financial goals and risk tolerance before investing. The retail sector has growth potential, but the competition and financial challenges faced by Vishal Mega Mart cannot be ignored.
The Vishal Mega Mart IPO has gained traction in some investor categories, especially NIIs, while QIBs remain cautious. With its affordable price band and strong brand presence, the IPO might appeal to retail investors looking for listing gains. However, investors should do thorough research and consult a financial advisor before making a decision.
