December 18, 2024
New Delhi, India
Vishal Mega Mart IPO
Vishal Mega Mart Limited made an impressive stock market debut on Wednesday, December 18, 2024, listing at ₹110 on the BSE, a 41% premium over its issue price of ₹78. On the NSE, the shares opened at ₹104, reflecting a 33.33% premium.
The ₹8,000-crore IPO of Vishal Mega Mart received overwhelming interest, with an overall subscription of 27 times. Qualified Institutional Buyers (QIBs) led the demand, subscribing 80.75 times their reserved quota. Non-Institutional Investors (NIIs) and retail investors subscribed 14.24 times and 2.31 times, respectively.
Key Listing Details:
- IPO Price Band: ₹74-78 per share
- BSE Listing Price: ₹110 (41% premium)
- NSE Listing Price: ₹104 (33.33% premium)
- Total IPO Subscription: 27 times
- Market Capitalisation Post Listing: ₹46,891 crore
Business Overview:
Gurugram-based Vishal Mega Mart operates 645 stores nationwide, catering to middle- and lower-middle-class consumers. Known for its affordable offerings such as ₹99 apparel and low-cost groceries, the company has carved a niche in smaller cities, where competition from quick-commerce platforms remains limited.
The company reported robust financial growth, with revenue increasing at a CAGR of 26.3% to ₹8,912 crore in FY24. EBITDA stood at ₹1,249 crore, and net profit reached ₹462 crore during the same period.
Investor Insights:
A significant portion of the IPO proceeds, ₹2,400 crore, came from anchor investors such as SBI Mutual Fund, Government of Singapore, and HDFC Mutual Fund. While the IPO was entirely an offer for sale by Samayat Services LLP, backed by Kedara Capital, analysts remain optimistic about Vishal Mega Mart’s long-term prospects.
Experts advise cautious investors to book profits after the listing gains, while those with a long-term outlook may hold the stock given its growth potential and focus on underserved markets.
As of writing this news Vishal Mega Mart shares were trading 109.92 up 40.91% by 11:50 AM IST today.
Also Read: Mobikwik IPO Makes a Grand D-Street Debut, Shares Surging Over 50% on Listing Day
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