Vishal Mega Mart IPO Latest News:The initial public offering (IPO) of supermart company Vishal Mega Mart has been subscribed 1.40 times till 4 pm on its second day. Investments can be made in this IPO till 13 December 2024. There has also been an increase in activity in the gray market regarding IPO. The size of the IPO is around Rs 8000 crore. The company has fixed the price band for the IPO at Rs 74-78 per share. Brokerage houses are looking positive about this. Shares will be allotted on 16 December 2024, while the company’s shares will be listed on BSE and NSE on 18 December 2024.
Vishal Mega Mart IPO GMP
The craze in the gray market has increased regarding the IPO of Vishal Mega Mart. The unlisted stock of the company is trading at a premium of Rs 22 in the gray market. In terms of upper price band Rs 78, this premium is 28 percent. Whereas a day ago its premium had come down to around 20 percent. This premium is indicating that the company’s stock may be listed at Rs 100 compared to its issue price of Rs 78.
Vishal Mega Mart IPO Subscription
Vishal Mega Mart’s IPO has been subscribed 1.40 times or 140 percent till 4 pm on the second day. 35 percent of the IPO is reserved for retail investors and so far it has been filled 1.15 times or 115 percent. There is a reserve of 15 per cent in the IPO for Non-Institutional Investors (NII) and till now it has been filled 3.32 times or 332 per cent. Whereas 75 percent of the share is reserved for Qualified Institutional Buyers (QIB) and till now 41 percent of it has been filled.
Vishal Mega Mart: What is the strength of the company?
• Providing service to a large and growing section of the Indian population.
• Due to consumer-centric approach, a large and loyal consumer base has been created
• Diverse and rapidly growing portfolio of own brands across product categories
• Pan India presence with a track record of consistent store growth
• Technology enabled and system driven operations
• Professional and experienced management team
• Track record of delivering revenue, profit growth and capital efficiency
Vishal Mega Mart: Risks and concerns
• General slowdown in global economic activity
• Dependence on third party vendors to manufacture products sold in your stores
• Changing consumer preferences.
• Revenue concentration from stores in Uttar Pradesh, Karnataka and Assam.
• Risks associated with leasing real estate for its operations.
• Increasing competition in the sector
(Source: Brokerage house Choice Broking)
Rating: Recommended to subscribe
Brokerage house Choice Broking has advised to subscribe for long term in Vishal Mega Mart’s IPO. The brokerage says that Vishal Mega Mart is a one-stop destination, which caters to middle and lower middle income consumers in India. It offers a curated range of apparel, general merchandise and FMCG products through 645 stores across the country. The store has its own and third party brands to meet the everyday needs of consumers. Most of the company’s revenue (70%) comes from its own brands. As of FY24, a major portion of the company’s stores are in North India, followed by East India and there are plans to expand into West and South India in the future. In the last few years, the top and bottom line of the company has been continuously growing. The company primarily targets tier-2 cities, which are expected to grow their diversified retail sector at 32% CAGR between CY23 and CY28.
Brokerage house AUM Capital has advised to subscribe to the IPO of Vishal Mega Mart. The brokerage says that Vishal Mega Mart Limited is one of the fastest growing supermarket retail chain stores in India. Rising disposable income and preference for quality and hygienic products among the population gives established companies like Vishal Megamart an edge over the unorganized sector. It also emerges as a strong competitor to other established branded retail chains like Spencer’s and Reliance Smart Bazaar. Healthy financial position and debt free status encourages this.
About the company
Vishal Mega Mart, which offers products across apparel, general merchandise and FMCG categories through its 626 stores and Vishal Mega Mart mobile application and website. Vishal Mega Mart competes in the market with Mukesh Ambani’s Reliance Retail, Tata Group’s Trent and grocery retailer Avenue Supermarts. The retailer’s financial performance has been strong over the years. The company’s profit for the financial year ending March 2024 has increased by about 44 percent on an annual basis to Rs 461.9 crore. Whereas the revenue increased by 17.5 percent to Rs 8911.9 crore as compared to the last financial year.
(Disclaimer: The view or advice on the share is given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
