The highly anticipated Vishal Mega Mart IPO is set to open on December 11, with the company looking to raise Rs 8,000 crore through an Offer for Sale (OFS) mechanism. The shares of Vishal Mega Mart are currently commanding a strong demand in the grey market, where they are being traded at a 31% premium. The Grey Market Premium (GMP) has recently risen to Rs 24, indicating positive market sentiment towards the retail giant's public listing.
Vishal Mega Mart's upcoming IPO is one of the most-awaited events in the retail sector, with the company gearing up for a significant public offering that will potentially shake up the market.
Vishal Mega Mart, backed by Kedaara Capital, has set the price band for its IPO at Rs 74-78 per equity share. The IPO is expected to raise Rs 8,000 crore through the OFS route. The IPO bidding window for anchor investors will open on December 10 and will be available for a day. The public subscription for retail investors will begin on December 11 and will close on December 13.
For retail investors, the minimum lot size is 190 shares, requiring an investment of Rs 14,820. On the other hand, small non-institutional investors must bid for a minimum of 14 lots (2,660 shares), which would amount to Rs 2.07 lakh. Larger non-institutional investors must bid for at least 68 lots (12,920 shares), which comes to Rs 10.07 lakh.
IPO Opening Date: December 11
IPO Closing Date: December 13
Allotment Date: Expected by December 16
Listing Date: Shares are expected to be listed on the BSE and NSE on December 18.
These dates are crucial for investors who are looking to participate in this high-profile IPO and gain exposure to one of India’s leading retail chains.
Currently, Vishal Mega Mart’s shares are seeing strong demand in the grey market, with a GMP of Rs 24, indicating a 31% potential listing premium. This marks a notable increase from the Rs 17 GMP observed just over the weekend. The grey market premium is a good indicator of the market's confidence in the IPO, and this rise reflects investor optimism.
The entire Rs 8,000 crore IPO is an Offer for Sale (OFS), meaning that the proceeds from the IPO will go directly to the selling shareholders, rather than the company itself. This approach is common for established companies seeking to provide liquidity to their investors while not raising additional funds for the business.
Vishal Mega Mart (VMM) is a well-known retail chain in India that primarily caters to middle- and lower-middle-income consumers. The company offers a wide range of products, which include both in-house brands and third-party brands. Its product portfolio spans across three major categories:
Apparel
General Merchandise
Fast-Moving Consumer Goods (FMCG)
With a strong presence across India, Vishal Mega Mart operates 645 stores in 414 cities across 30 states and union territories, covering a retail space of 11.5 million square feet. For FY24, the company reported an impressive revenue of Rs 8,900 crore, reflecting its robust growth and established market presence.
As a key player in India’s retail landscape, Vishal Mega Mart has built a solid reputation for providing affordable products, appealing to a large consumer base. The company’s expansion plans, backed by strong investor interest, position it for continued growth, both through its IPO and its widespread retail footprint.
The Vishal Mega Mart IPO presents a compelling opportunity for investors looking to tap into one of India’s leading retail chains. With a strong grey market premium of Rs 24 and a price band set between Rs 74-78, the IPO is generating significant interest. Investors should mark the important dates, including the IPO opening on December 11 and the expected listing on December 18, to ensure they don’t miss out on this potential high-growth investment.
With a solid track record of performance and extensive market reach, Vishal Mega Mart is well-positioned for continued success, making its IPO a noteworthy event in the Indian retail sector. Whether you're a retail investor or a non-institutional investor, understanding the pricing, lot sizes, and key milestones will be essential to making an informed investment decision.