Written by Shehnaz Shaikh
December 12, 2024
The Vishal Mega Mart IPO, a highly anticipated public offering by India’s leading hypermarket chain, entered its second day of bidding today. Backed by Kedaara Capital, the IPO has already garnered significant attention, with a 51% subscription on Day 1. Here’s a detailed breakdown of subscription status, grey market premium (GMP), and other key details.
Vishal Mega Mart IPO Subscription Status (Day 2)
The Vishal Mega Mart IPO continued to garner significant interest on its second day. Here’s a detailed breakdown of the subscription status:
Subscription Status
- Qualified Institutional Buyers (QIBs):
Subscribed 1.2 times, reflecting a growing interest from institutional investors as the IPO progresses. - Non-Institutional Investors (HNIs):
Subscribed 1.5 times, showcasing strong participation from high-net-worth individuals. - Retail Investors:
Subscribed 2.4 times, indicating robust demand and excitement among retail investors. - Overall Subscription:
The IPO has been subscribed 1.8 times across all categories, signaling a positive response from the market.
Day 2 Analysis
The retail segment continues to lead with overwhelming participation, while interest from institutional and HNI segments is building momentum. This highlights the broad-based appeal of Vishal Mega Mart’s IPO offering.
Key Details: Vishal Mega Mart IPO
| Parameter | Details |
|---|---|
| Price Band | ₹74-78 per share |
| IPO Size | ₹8,000 crore (Offer for Sale) |
| Minimum Lot Size | 190 shares (₹14,820 investment) |
| Anchor Investor Window | Opened December 10 |
| Allotment Date | December 16 |
| Listing Date | December 18 |
Grey Market Premium (GMP)
As of today, Vishal Mega Mart’s GMP stands at ₹21, suggesting a robust listing price of approximately ₹99 per share—26.92% higher than the upper price band of ₹78.
GMP Trends
- Lowest GMP: ₹13
- Highest GMP: ₹25
- Current GMP: ₹21
The consistent rise in GMP over the last eight sessions reflects strong investor confidence and demand.
Vishal Mega Mart IPO Reviews
Brokerage firms have expressed a positive outlook, highlighting the company’s competitive edge and growth potential:
- Choice Brokerage: Recommends subscribing with a long-term view, citing the company’s strong presence in Tier-2 cities.
- AUM Capital: Highlights Vishal Mega Mart’s robust financials and market position as reasons to invest.
- Master Capital Services: Suggests a long-term buy for its dominance in the retail sector targeting middle- and lower-middle-income groups.
- Bajaj Broking: Acknowledges strong fundamentals but warns that the IPO is priced aggressively.
- Swastika Investmart: Suitable for high-risk investors due to valuation concerns.
About Vishal Mega Mart
Vishal Mega Mart (VMM) is one of India’s largest hypermarket chains, catering primarily to middle- and lower-middle-income consumers.
- Stores: 645 across 414 cities in 30 states and union territories
- Retail Space: 11.5 million square feet
- FY24 Revenue: ₹8,900 crore
The company offers a mix of in-house and third-party brands in apparel, general merchandise, and FMCG categories, making it a preferred shopping destination for value-conscious consumers.
Key Takeaways for Investors
Pros
- Strong market position with a wide consumer base
- Consistent revenue growth and market expansion
- Rising GMP reflects robust listing expectations
Cons
- Entire IPO proceeds are an Offer for Sale (OFS), benefiting selling shareholders rather than the company.
- Aggressive pricing in terms of P/E ratio
FAQs
1. What is the price band for Vishal Mega Mart IPO?
The price band is set at ₹74-78 per share.
2. What is the minimum investment for retail investors?
Retail investors must bid for at least 190 shares, requiring an investment of ₹14,820.
3. When will Vishal Mega Mart shares be listed?
The listing date is scheduled for December 18, 2024.
4. What does the grey market premium (GMP) indicate?
The current GMP of ₹21 suggests a listing price of ₹99 per share, reflecting a 26.92% premium over the issue price.
Final Thoughts
The Vishal Mega Mart IPO presents an attractive opportunity for long-term investors, backed by its strong market position, robust growth prospects, and rising GMP. However, potential investors should weigh the risks of aggressive valuations and the nature of the Offer for Sale (OFS) before making decisions.
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