Vishal Mega Mart IPO Opens: Price, GMP, Subscription Status, Allotment Details; Should You Apply Or Avoid?

Vishal Mega Mart IPO: The Rs 8,000 crore IPO is now open for bidding for investors from December 11. The IPO will close on December 13. Ahead of the IPO, the company garnered up to Rs 2,400 from anchor investors on December 10. The latest GMP signals at double-digit premium listing on BSE and NSE for Vishal Mega Mart.

Vishal Mega Mart IPO Subscription Status:

In less than half an hour of opening on December 11, the IPO received bids of 1,71,95,760 equity shares, which are 2% of the offered size of 75,67,56,757 equity shares. Retail and non-institutional investors category received 4% and 3% subscriptions of the allocated portion to them. The demand from institutional buyers was slow.

Vishal Mega Mart IPO Details:

The IPO is a 100% book building and will open on December 11. The bidding will close on December 13. The price band for the IPO is fixed at Rs 74 to Rs 78 per share. While the bid lot size is 190 Equity Shares and in multiples thereof. The IPO is an entirely offer for sale (OFS) worth Rs 8,000 crore.

The promoter & promoter group and the non-promoter & non-public are participating in the OFS and offloading 102.56 - 108.11 crore of shares. Post-IPO, the P&PG and public shareholders will have 76.02% and 23.98% stake in the company, respectively.

Since the IPO is an OFS, Vishal Mega Mart cannot utilise the proceeds and will be given to selling shareholders.

Vishal Mega Mart IPO GMP Today:

As per Investor Grain, Vishal Mega Mart IPO's last GMP is ₹19, last updated Dec 11th 2024 08:31 AM. With a price band of 78.00, Vishal Mega Mart IPO's estimated listing price is ₹97 (cap price + today's GMP). The expected percentage gain/loss per share is 24.36%.

Vishal Mega Mart IPO Anchor Investors:

On December 10, when bidding for anchor investors was opened, many global and domestic investors bought Vishal Mega IPO for Rs 2,400 crore. A total of 30.76 crore equity shares were allocated to anchor investors.

Among domestic investors, Tata MF, Max Life Insurance, Bajaj Holdings, UTI MF, Bajaj Allianz General Insurance, Baroda BNP Paribas MF, Kotak Mahindra Life Insurance, SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mahindra AMC, Nippon Life India, Axis Mutual Fund, Aditya Birla Sun Life Trustee, Franklin, Mirae Asset, HDFC Life Insurance, SBI Life Insurance, Canara Robeco MF, Invesco and others received shares of Vishal Mega Mart.

In the case of global investors, the renowned companies that liked Vishal Mega Mart IPO are - the Government of Singapore, Monetary Authority of Singapore, JP Morgan, Custody Bank of Japan, Nomura, Blackrock, Government Pension Fund Global, Schroder International Selection Fund, HSBC Global, TIMF Holdings, CLSA Global, and Prudential Hong Kong.

Should You Subscribe to Vishal Mega Mart IPO Or Not?

Sharekhan On Vishal Mega Mart IPO:

VML is one of the largest organized retail players with a large presence in tier-2 and tier-3 Indian towns in India. At the lower and upper price band, the stock is trading at 28x and 29x its FY2024 EV/EBITDA, respectively, which is at a discount to close peers and large retailers in the value retail space. Aggressive store expansion plans and strategies are in place to improve same-store sales growth will drive revenue growth in the coming years.

An increase in the share of private brands and store level efficiencies will aid in improving margins. Efficient working capital management will lead to strong cash flow generation and help maintain a healthy balance sheet.

Ventura Securities On Vishal Mega Mart IPO:

Giving a SUBSCRIBE rating, Ventura's note said, that Vishal Mega Mart's in-house brand portfolio spans key categories to meet diverse consumer needs. Its technology-driven operations and systematic processes ensure smooth and efficient business functioning. Backed by an experienced and professional management team, the company has consistently delivered revenue growth, profit expansion, and capital efficiency, securing its position as one of India's top offline-first
diversified retailers.

SMIFS On Vishal Mega Mart IPO:

Vishal's strategy includes leveraging technology and data from its loyalty program to drive sales through personalized recommendations and promotions, expanding its product portfolio with new high-margin branded products, and enhancing in-store experiences with improved visual merchandising and checkout processes. The company's hyperlocal delivery service, which has garnered 6.77 million registered users, further supports this growth. Notably, Vishal's efficient new store rollout model, with an average payback period of 19 months for stores opened in FY24, underpins its profitable expansion strategy.

This comprehensive approach, coupled with a robust market outlook, positions Vishal for sustained growth and increased market share in India's organized retail sector. We recommend subscribing to the issue as a long term investment as the expansion into Tier II cities and hyperlocal delivery service aids growth coupled with rising per capital income in the country. While some risk could emanate from the diversification into the Western parts of the country.

Vishal Mega Mart is a one-stop destination for middle and lower-middle income India. Vishal curates a diverse range of merchandise through its portfolio of own brands and third-party brands to fulfil the aspirational and daily needs of consumers.