VISHAL MEGA MART SHARE PRICE 

Vishal Mega Mart, a prominent Indian budget retailer, recently concluded its initial public offering (IPO) with significant investor interest. Here's a comprehensive overview of the IPO and its implications for potential investors.


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Company Overview

Established in 2001, Vishal Mega Mart has expanded to over 600 stores nationwide, primarily in smaller cities. The retailer offers a diverse range of products, including clothing, groceries, home appliances, and personal care items, catering to value-conscious consumers.

IPO Details

  • Issue Size: The IPO was entirely an offer for sale (OFS) by existing shareholder Samayat Services, amounting to ₹8,000 crore (approximately $943 million).
  • Price Band: The shares were offered at a price band of ₹74 to ₹78 per share.
  • Lot Size: Investors could bid in lots of 190 shares, requiring a minimum investment of ₹14,820.
  • Subscription Period: The IPO was open for subscription from December 11 to December 13, 2024.

Investor Response

The IPO received an overwhelming response, with bids for approximately 20.6 billion shares against the 756.8 million shares on offer, resulting in an overall subscription of about 27.28 times.

  • Qualified Institutional Buyers (QIBs):
  • Non-Institutional Investors (NIIs):
  • Retail Individual Investors (RIIs):

Anchor Investors

Prior to the public offering, Vishal Mega Mart allocated shares worth approximately ₹2,400 crore to anchor investors, including the Government of Singapore and funds managed by JP Morgan and HSBC.

 Allotment and Listing

  • Allotment Date: The basis of share allotment was finalized on December 16, 2024.
  • Listing Date: Shares are scheduled to commence trading on December 18, 2024, on both the BSE and NSE.

Grey Market Premium (GMP)

As of December 17, 2024, the shares were commanding a grey market premium of approximately ₹19 to ₹20.50 per share, indicating potential listing gains of around 24% to 26% over the upper IPO price band.

Financial Performance

In the fiscal year 2024, Vishal Mega Mart reported:

  • Revenue: ₹8,911 crore, marking a 26% compounded annual growth rate (CAGR) from ₹5,588 crore in FY22.
  • Net Profit: ₹462 crore, reflecting a 51% CAGR over the same period.
  • EBITDA Margin: 14%.
  • Return on Capital Employed (ROCE): 71%.

Valuation

At the upper price band of ₹78 per share, the company's implied market capitalization is approximately ₹35,168 crore, translating to a price-to-earnings (P/E) ratio of 71 times its annualized earnings for FY25.This valuation is comparatively lower than its peers, with Avenue Supermarts (DMart) trading at a P/E of 92 and Trent at 137.

Conclusion

Vishal Mega Mart's successful IPO underscores strong investor confidence in its business model and growth prospects, particularly in India's tier II and III cities. The anticipated listing gains, as suggested by the grey market premium, further reflect positive market sentiment. However, potential investors should conduct thorough research and consider market conditions before making investment decisions.

NOTE - ALL INFORMATION BASED ON ONLINE REPORTS.