The initial public offering (IPO) of Vishal Mega Mart Limited has garnered significant attention as it moves into its final day of bidding. With a price band set between ₹74 to ₹78 per equity share, the company aims to raise an impressive ₹8,000 crore through this offer for sale (OFS).
Current Grey Market Premium (GMP)
As of today, the Grey Market Premium (GMP) for Vishal Mega Mart shares stands at ₹22, reflecting a positive sentiment among investors. This marks an increase from the previous day’s GMP of ₹17, indicating growing confidence in the stock ahead of its market debut. The uptick in GMP suggests that investors are optimistic about the company’s potential performance post-listing.
Subscription Status
By 10:18 AM on Day 3 of the bidding process, the IPO had been subscribed 1.85 times overall. Here’s a breakdown of the subscription status:
- Retail Portion: Subscribed 1.31 times
- Non-Institutional Investors (NII): Subscribed 4.89 times
- Qualified Institutional Buyers (QIB): Subscribed 0.51 times
The strong subscription figures, particularly in the NII segment, indicate robust demand for the shares.
Should You Apply? Expert Opinions
Several brokerage firms have weighed in on whether investors should subscribe to the IPO:
- Choice Broking recommends a “Subscribe for Long Term” rating, noting that despite the higher price range demanding an EV/Sales multiple of 3.8x, Vishal Mega Mart has demonstrated consistent growth in both revenue and profitability due to its expanding store network and effective inventory management.
- Ashika Research also assigned a “Buy” tag, pointing out that at the upper price band, the P/E multiple stands at 69.2x based on projected H1 FY25 earnings. They encourage long-term investment given the company’s strategic positioning in the retail sector.
- Other firms such as Arete Securities, AUM Capital, and KR Choksey Securities have echoed similar sentiments, advocating for subscription based on long-term growth prospects.
Key IPO Details
- IPO Opening Date: December 11, 2024
- IPO Closing Date: December 13, 2024
- Lot Size: Minimum application size is 190 shares, requiring an investment of approximately ₹14,820.
- Expected Allotment Date: December 16, 2024
- Listing Date: December 18, 2024
Company Overview
Vishal Mega Mart operates a chain of hypermarkets across India, offering a wide range of products including apparel, general merchandise, and fast-moving consumer goods (FMCG). As of mid-2024, it operates over 626 stores nationwide and is focused on expanding its footprint into Tier-II cities.
Conclusion
With its promising GMP and solid subscription figures, Vishal Mega Mart’s IPO presents an intriguing opportunity for investors looking for long-term gains in the retail sector. The positive reviews from analysts further bolster confidence in this offering. Investors should consider their financial goals and risk appetite before making a decision.
Disclaimer: This article is based on current market observations and expert opinions and may be subject to change as new information becomes available. Always conduct your own research or consult with a financial advisor before making investment decisions.
