Vishal Mega Mart Limited IPO (Vishal Mega Mart IPO) GMP, Details
The highly anticipated initial public offering (IPO) of Vishal Mega Mart, a prominent supermarket chain in India, is set to open for subscription on December 11 and close on December 13. The company has established a price range of Rs 74-78 per share for the Rs 8,000 crore IPO.
This IPO will be conducted as a complete Offer For Sale (OFS), meaning that none of the proceeds will go to the company itself. Potential bidders can bid for one lot of 190 shares and in multiples of that thereafter. At the upper end of the price range, one lot of Vishal Mega Mart would require a minimum investment of Rs 14,820 from bidders.
Of the nearly 102.5 crore shares available for bidding, 50% have been reserved for institutional shareholders (QIBs), while 15% will be set aside for non-institutional shareholders. The remaining 35% of shares in the IPO will be allocated to retail shareholders. Samayat Services LLP is the sole promoter-selling shareholder in this IPO, with a weighted average cost of acquisition of Rs 10.14 per share. Currently, Samayat Services LLP holds a 96.55% stake in the Gurugram-based supermart major.
At the upper end of the price range, the price-to-earnings ratio for Vishal Mega Mart on a diluted Earnings Per Share (EPS) basis for the financial year 2024 will be 77.23 times.
Vishal Mega Mart’s IPO is expected to be one of the largest of the year, following Hyundai Motors India’s Rs 27,000 crore issue, Swiggy’s Rs 11,000 crore-plus issue, and NTPC Green Energy’s Rs 10,000 crore offering. As of June 30, 2024, the company operates 626 Vishal Mega Mart stores across India, in addition to a mobile app and website.
According to the Redseer report, India’s aspirational retail market was valued at Rs 68-72 trillion in 2023 and is projected to reach Rs 104-112 trillion by 2028, growing at a compound annual growth rate (CAGR) of 9 percent. This growth is being fueled by a shift towards organized retail, driven by higher quality expectations, wider product assortments, better pricing (especially in fast-moving consumer goods), urbanization, and opportunities for organized players to expand their market presence.
Leading financial institutions such as Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India Company have been appointed as the book-running lead managers to the issue. These firms will play a crucial role in managing the issuance of securities and ensuring the success of the retail market expansion in India.
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