Vishal Mega Mart IPO Day 3. Check key dates, GMP, price band, subscription and review

After getting a steady response on the first day, the IPO of Vishal Mega Mart sailed through on the second day of the bidding process, thanks to strong interest from non-institutional investors. The overall subscription for the IPO, which closes today, stood at 1.53 times.

The Rs 8,000 crore IPO is entirely an OFS of 102 crore shares and the proceeds will go to the selling shareholders.

Vishal Mega Mart IPO: price band

The company has fixed a price band of Rs 74-78 per share, where investors can bid for 190 shares in one lot and in multiples thereafter.

Vishal Mega Mart IPO: GMP today

Vishal Mega Mart’s GMP is constantly on the downtrend since the issue launch and currently has a GMP of around Rs 17, which is a 22% premium over the issue price.

Vishal Mega Mart IPO: Review

Analysts advised investors to subscribe to the issue as the company has a loyal consumer base with a diverse and growing portfolio of its own brands.

At the upper price band, the company is valued at P/E of 67.83x, with an EV/EBITDA of 28.1x and market cap of Rs 35,168 crore post issue of equity shares.

“We believe that the IPO is fairly priced and recommend a Subscribe-Long term rating to the IPO,” said Anand Rathi.

About Vishal Mega Mart IPO

Founded in 2001, Vishal Mega Mart is a fashion-centric hypermarket chain with a strong presence across India. The General Merchandise section features home and kitchen appliances alongside travel products, while the Food and Groceries section stocks a range of FMCG items, including personal and household care essentials. In 2018, the company underwent a significant ownership change when Partners Group of Switzerland and India’s Kedaara Capital acquired a majority stake. As of September 30, the brand operates 645 franchised stores in 414 cities, encompassing more than 11 million square feet of retail space.

The company currently boasts a market capitalization of Rs 35,168.01 crore. In FY24, the company achieved a year-on-year revenue growth of 17.41%, with its profit after tax soaring by 43.78%.

The public offer is managed by KFin Technologies, appointed as the official registrar. Leading the IPO are Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India, ensuring robust management of the process.

Vishal Mega Mart IPO: Opening Date, Allotment and Listing Date

The Vishal Mega Mart IPO opened for public subscription on December 11 and the issue will be closing on December 13. Meanwhile, the allotment for the IPO is expected to be finalised on December 16.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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