Vishal Mega Mart IPO Day 2: Subscription reaches 0.73x, GMP zooms 27%

Vishal Mega Mart IPO Day 2: Vishal Mega Mart has received a subdued response from investors for its initial public offering (IPO) that opened for subscription on Wednesday, December 11, 2024. The Rs 8,000 crore offering by the retail store chain operator has been subscribed 0.73 times as of 11:42 AM on Thursday, December 12, 2024, according to data available on the National Stock Exchange (NSE).

 

Non-Institutional Investors (NIIs) have led the demand for the Vishal Mega Mart IPO, subscribing to their reserved quota 1.71 times. Retail investors followed with a subscription of 0.71 times. Notably, Qualified Institutional Buyers (QIBs) have shown minimal interest so far, subscribing to their reserved category by just 0.03 times.

 

Meanwhile, shares of Vishal Mega Mart are commanding a decent premium in the grey market on Thursday. Sources tracking unofficial market activities revealed that Vishal Mega Mart shares were trading at Rs 99 apiece, reflecting a grey market premium (GMP) of Rs 21 or 26.92 per cent per share over the upper end of the IPO price band of Rs 78. 

 

Available at a price band of Rs 74–78 per share, the Vishal Mega Mart IPO comprises a complete offer for sale (OFS) of 1,025,641,025 shares. The company has set the lot size at 190 shares, allowing investors to bid for a minimum of 190 shares or multiples thereof. Accordingly, a retail investor would require a minimum of Rs 14,820 to bid for one lot (190 shares) and Rs 1,92,660 to bid for a maximum of 13 lots, totaling 2,470 shares.

 

The Vishal Mega Mart IPO subscription window is set to close on Friday, December 13, 2024. After the closure of the subscription window, the basis of allotment of shares will be finalised on Monday, December 16, 2024. Successful allottees will receive the shares in their demat accounts by Tuesday, December 17, 2024.

 

Shares of Vishal Mega Mart are expected to list on the BSE and NSE on Wednesday, December 18, 2024.

 

As the IPO comprises an entire offer for sale, Vishal Mega Mart will not receive any proceeds from the issue. The promoter selling shareholder will receive the entirety of the proceeds after deducting its portion of the offer-related expenses and relevant taxes, as outlined in the Red Herring Prospectus (RHP) filed by the company.

 

Vishal Mega Mart IPO review

The IPO has received reviews from several brokerages, including Bajaj Broking, Swastika Investmart, Master Capital Services, Choice, and AUM Capital. Market analysts remain optimistic about the public offering from a long-term perspective. READ MORE

 

About Vishal Mega Mart

Established in 2001, Vishal Mega Mart is a hypermarket chain offering a wide range of products, including apparel, general merchandise, and FMCG. The company operates an asset-light business model, leasing its distribution centers and stores.