Vishal Mega Mart IPO day 2: GMP, subscription status, review, other details. Buy or not?

Vishal Mega Mart IPO: The initial public offering (IPO) of Vishal Mega Mart Limited hit the Indian primary market on Wednesday. Bidding for the public issue will remain open until 5:00 PM on 13th December 2024. The hypermarket company has fixed the Vishal Mega Mart IPO price band at ₹74 to ₹78 per equity share. The company aims to raise ₹8,000 crore, an entire offer for sale (OFS). A bidder can apply in lots, and one lot of the Vishal Mega Mart IPO comprises 190 company shares. According to stock market observers, Vishal Mega Mart Limited shares are available in the grey market. They said that Vishal Mega Mart shares are available at a premium of ₹17 in the grey market today.

Vishal Mega Mart IPO subscription status

On Day 2 of the public bidding, the Vishal Mega Mart IPO received 1.54 times the subscription compared to the shares on offer. The Non-Institutional Investors (NIIs) led the bidding round on the second day, coming in at 3.84x subscription, followed by the retail investors at 1.16x subscription. 

The Qualified Institutional Buyers (QIBs) ended the second day of public bidding with a 48 per cent subscription to the shares available, according to the data collected from BSE. 

Vishal Mega Mart IPO details

1] Vishal Mega Mart IPO GMP today: According to data collected from Investorgain.com, the grey market premium (GMP) for the Vishal Mega Mart IPO stands at ₹17 per share. With the upper price band at ₹With the upper price band at ₹78 per share, the IPO is estimated to hit Dalal Street at ₹95 per share, a gain of 21.79%. 

Grey market premium (GMP) is an indicator of the investors' willingness to pay more for a public issue. Earlier on the second day of the bidding the GMP fell to ₹18, from its earlier ₹21 levels, now stands at ₹17, at the end of Day 2. 

2] Vishal Mega Mart IPO price band: The hypermarket chain company has fixed the price band of the book build issue at ₹74 to ₹78 per equity share.

3] Vishal Mega Mart IPO date: The public issue has opened today and will remain open until 13 December 2024. This means the book build issue will remain open from Wednesday to Friday.

4] Vishal Mega Mart IPO size: The company aims to raise ₹8,000 crore from this IPO, which is entirely OFS in nature.

5] Vishal Mega Mart IPO lot size: Bidders can apply in lots, and one lot of the public issue will comprise 190 company shares.

6] Vishal Mega Mart IPO allotment date: The most likely date of share allotment is Saturday, December 14th, 2024. In case of any delay, the announcement of share allotment can be expected on 16 December 2024.

7] Vishal Mega Mart IPO registrar: KFin Technologies Limited has appointed this public offer's official registrar.

8] Vishal Mega Mart IPO Lead Managers: Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India have been appointed lead managers of the public issue.

9] Vishal Mega Mart IPO listing date: The book build issue is proposed for listing on the BSE and the NSE. The most likely Vishal Mega Mart IPO listing date is 18 December 2024.

Vishal Mega Mart IPO: Apply or not?

10] Vishal Mega Mart IPO review: Assigning a 'buy' tag to Mobikwik IPO, VLA Ambala, Co-founder of Stock Market Today, said, “Vishal Mega Mart's INR 8,000 crore IPO size has generated ample interest in the market, backed by its strong market position and consistent financial performance. The price band of INR 74-78 apiece further adds to its appeal. According to my analysis, the offline retailer's IPO is reasonably valued compared to its peers. This could be a suitable bet for those seeking exposure to the retail space. If the stock lists within the planned price band, its P/E ratio will be nearly 2X that of its sector, while its peers are trading at approximately 3X the sector, suggesting room for growth.”

Giving a 'subscribe' tag to Vishal Mega Mart IPO, Akriti Mehrotra, Research Analyst at StoxBox, said, "Vishal Mega Mart is strategically positioned to capitalize on this growth, offering a wide range of affordable products across apparel, FMCG, and general merchandise. With 645 stores in 414 cities, the company caters to middle and lower-middle-income consumers, generating over 70% of its brand revenue. Vishal Mega Mart is expanding its pan-India network, focusing on underserved Tier-2 and Tier-3 cities while driving same-store sales growth through an expanded product portfolio and enhanced in-store experiences. The company has shown robust financial performance, with revenue growing at a CAGR of 26.3%, reaching Rs. 89,119.5 million in FY24. Vishal Mega Mart presents an attractive investment opportunity, priced at a P/E of 77.2x on FY24 earnings. We recommend a "SUBSCRIBE" rating."

Swastika Investmart has also assigned a ‘buy’ tag to Vishal Mega Mart IPO, saying, “The leading offline retailer has a strong market position in India. It has shown consistent financial performance with growing revenue and profitability. Compared to peers, the public issue is fairly priced as well. However, the book build issue is suitable for high-risk investors.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.