Vishal Mega Mart IPO Subscription Status Highlights: Check GMP price, allotment, listing, and other details

Shares of Vishal Mega Mart were trading at 27% premium in the grey market. The stocks were changing hands at a price of Rs 99. The grey market is an unofficial place to trade shares.

A retail buyer can apply for as minimum as 190 shares in a lot which amounts to Rs 14,820. There are different lot sizes for small and big NIIs. A small NII can bid for at least 2,660 shares amounting to Rs 2,07,480 and a big NII 12,920 shares which totals Rs 10,07,760.

The book running lead managers for the Vishal Mega Mart IPO are Kotak Mahindra Capital Company Limited, ICICI Securities Limited, Intensive Fiscal Services Private Limited, Jefferies India Private Limited, J.P. Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd. Kfin Technologies Limited is the registrar for the issue.

Vishal Mega Mart IPO raised Rs 2,400 crore from anchor investors, with the anchor bid date set for December 10, 2024. A total of 307,692,307 shares are offered to anchor investors. The lock-in period for 50% of the shares will end on January 15, 2025, while the lock-in for the remaining shares will conclude on March 16, 2025.

The Vishal Mega Mart IPO offers a total of 1,02,56,41,026 shares, with 30 per cent (30,76,92,307 shares) allocated to anchor investors, 20 per cent (20,51,28,206 shares) to Qualified Institutional Buyers (QIB), 15 per cent (15,38,46,154 shares) to Non-Institutional Investors (NII), and 35 per cent (35,89,74,359 shares) to Retail Individual Investors (RII).

The Vishal Mega Mart IPO has a lot size of 190 shares, with investors required to bid for a minimum of 1 lot and in multiples thereof. For retail investors, the minimum investment is for 1 lot (190 shares) amounting to Rs 14,820, while the maximum investment is for 13 lots (2,470 shares), totaling Rs 192,660. For Small HNIs (S-HNI), the minimum investment is for 14 lots (2,660 shares) at Rs 207,480, and the maximum investment is for 67 lots (12,730 shares), amounting to Rs 992,940. For Big HNIs (B-HNI), the minimum investment is for 68 lots (12,920 shares), totaling Rs 1,007,760.

The IPO offers a price band of Rs 74 to Rs 78 per share, with a face value of Rs 10 per share and a lot size of 190 shares. The total issue size is 1,025,641,025 shares, aggregating up to Rs 8,000 crore, all of which are being offered through an Offer for Sale (OFS). The issue is a Book Built Issue IPO, and the shareholding pre- and post-issue remains the same at 4,508,719,493 shares.

Vishal Mega Mart‘s IPO opens today, December 11, 2024, and will close on December 13, 2024. The basis of allotment will be finalized on December 16, with refunds and credit of shares to Demat accounts on December 17. The shares are scheduled to be listed on December 18, 2024. The cut-off time for UPI mandate confirmation is 5 PM on December 13, 2024.

As of 4:25 PM, the Vishal Mega Mart IPO has been subscribed 0.46 times on its first day so far. While the overall demand is still low, there has been varied interest across different investor categories.

Retail Investors – Subscribed 0.53 times, with bids placed for more shares than those available.

Non-Institutional Investors (NII) – The NII category saw a better response, with subscriptions at 0.94 times.

Qualified Institutional Buyers (QIB)- QIBs have shown very little interest, subscribing only 0.01 times.

The book running lead managers for the Vishal Mega Mart IPO are Kotak Mahindra Capital, ICICI Securities, Intensive Fiscal Services, Jefferies India, J.P. Morgan India, and Morgan Stanley India. Kfin Technologies is the registrar for this public issue.

The revenue of Vishal Mega Mart soared from Rs 5,588 crore in fiscal year 2022 to Rs 8,911 crore in fiscal year 2024, driven by growth in both existing and new stores. Moreover, the EBITDA also reported a surge from Rs 803 crore in fiscal year 2022 to Rs 1,248 crore in fiscal year 2024.

As of 2:41 PM, the Vishal Mega Mart IPO has been 0.34 times subscribed on its first day. The breakdown shows a 0.43 times subscription in the retail category, 0.00 times in the QIB (Qualified Institutional Buyers) category, and 0.61 times in the NII (Non-Institutional Investors) category.

“Vishal Mega Mart curates a diverse range of merchandize through a portfolio of its own brands (72% in FY24) and third-party brands (28%) to fulfil the aspirational and daily needs of consumers,” said Geojit Financial Services in an IPO note.

The company will not receive any proceeds of the offer for sale by the promoter and selling shareholders. The promoter and selling shareholders will be entitled to the entirety of proceeds of the OFS after deducting its portion of the offer related expenses and the relevant taxes thereon.

Vishal Mega Mart was fetching a premium of more than 24% in the grey market, indicating a listing at Rs 97 against an issue price of Rs 78. The grey market is an unofficial place to trade shares ahead of listing.

The issue has been subscribed 0.18 times as of 1200 IST on December 11. The retail portion was booked 0.25 times while the NIIs booked it 0.24 times. The QIBs didn’t show much interest in the IPO.

“The IPO offers an attractive valuation at 76x FY24 PE, making it relatively affordable compared to industry peers and providing a promising opportunity for retail investors. The valuation is further supported by a robust 50% CAGR growth in EPS, which enhances its appeal. Investors interested in the retail sector are encouraged to subscribe to this IPO. Allottees can consider holding the shares for long-term gains,” said Guarav Garg, Research Analyst at Lemonn.

The company has introduced sustainability measures, including the reduced use of cardboard boxes for their footwear products and installing shampoo dispensers at select stores for consumers to conveniently refill their shampoo bottles, among others. They have a professional and experienced management team led by a distinguished board of directors.

All stores of Vishal Mega Mart are operated on a leasehold basis; this model allows them to roll out new stores with optimal upfront investment and deliver short payback periods on per-store investment.

“At the upper price band of Rs 78, Vishal Mega Mart is trading at a P/E of 69x on FY25 earnings (annualized), which appears fairly priced compared to its peers and factoring in its high growth. Considering positive industry growth opportunities, the expected rise in demand, healthy store additions, and presence in the online channel, we assign a “Subscribe” rating on a medium- to long-term basis,” said Goejit Financial Services in an IPO note.

Vishal Mega Mart is focused on serving a large and fast growing section of the Indian population with consumer-centric approach resulting in loyal consumer base and diverse and growing portfolio of own brands with pan-India presence along with technology enabled, systems driven operations.

“If FY25 annualized earnings are attributed to its post-IPO fully diluted paid-up equity capital, the asking price corresponds to a P/E of 69.03. Based on FY24 earnings, the P/E stands at 75.73, indicating that the issue is aggressively priced,” said Bajaj Broking in an IPO note.

Shares of Vishal Mega Mart were fetching a premium of more than 24% in the grey market. This indicates that the company may hit the bourses at a price of Rs 97. The grey market is an unofficial place to trade shares.