Jobaaj Stories
The much-awaited initial public offering (IPO) of Vishal Mega Mart Limited has opened for subscription today, December 11, 2024. As one of India's leading hypermarket chains, Vishal Mega Mart is set to raise Rs 8,000 crore through this offering, which is entirely an offer for sale (OFS).
Key IPO Details
- Price Band: Rs 74 to Rs 78 per equity share
- IPO Size: Rs 8,000 crore (OFS)
- Subscription Opening Date: December 11, 2024
- Subscription Closing Date: December 13, 2024
- Lot Size: 190 shares per lot
- Minimum Investment (Retail): Rs 14,820
- Minimum Investment (Small Non-Institutional Investors): Rs 207,480 (14 lots)
- Minimum Investment (Large Non-Institutional Investors): Rs 1,007,760 (68 lots)
Important Dates
- Allotment Date: December 14, 2024 (Tentative)
- Listing Date: December 18, 2024
- Registrar: KFin Technologies Limited
- Lead Managers: Kotak Mahindra Capital, ICICI Securities, Morgan Stanley India, among others
Grey Market Premium (GMP)
The IPO is witnessing a positive sentiment in the grey market, with Vishal Mega Mart shares trading at a premium of Rs 26, indicating strong investor interest ahead of the listing.
Should You Apply?
Experts have weighed in on the IPO’s valuation and investment potential. According to Manan Goyal of Anand Rathi brokerage, the IPO is fairly priced at the upper price band of Rs 78, implying a price-to-earnings (P/E) ratio of 67.83x, an EV/EBITDA multiple of 28.1x, and a return on net worth (RoNW) of 8.18%. The company’s market capitalization post-issue will be Rs 3,51,680 million.
Goyal recommends a “Subscribe-Long Term” rating, suggesting that the IPO holds potential for long-term gains based on its current pricing and fundamentals.
(NOTE- The above article is meant for informational purposes only, and should not be considered as any investment advice. )
Subscription and Market Sentiment
The IPO has generated significant buzz among investors, with high expectations from both retail and institutional categories. The stock market is keenly watching how the issue performs over the next few days as the subscription progresses.
With Vishal Mega Mart’s solid track record in the Indian retail sector and a growing presence in the hypermarket space, the IPO presents an attractive opportunity for investors looking to diversify their portfolios in the retail and consumer goods sector.
As the IPO window remains open until December 13, 2024, investors have a short window to participate in the offering, with the listing slated for December 18, 2024, on the NSE and BSE.
Investors should carefully assess their risk appetite and investment goals before applying for the Vishal Mega Mart IPO.
