Vishal Mega Mart vs MobiKwik IPO: A Detailed Comparison
December 11, 2024 – The Indian stock market is abuzz with the simultaneous initial public offerings (IPOs) of two prominent companies: Vishal Mega Mart and MobiKwik. Both IPOs, opening today, present unique opportunities for investors. Here’s a detailed comparison of the two.
Vishal Mega Mart IPO
Issue Size and Structure: Vishal Mega Mart’s IPO is a substantial offering, with a total issue size of ₹8,000 crore. The entire issue is an Offer for Sale (OFS) of 102.56 crore shares, priced between ₹74 and ₹78 per share. Investors can bid for a minimum lot size of 190 shares.
Key Dates:
- Subscription Period: December 11-13, 2024
- Allotment Date: December 16, 2024
- Listing Date: December 18, 2024
Use of Proceeds: As an OFS, the proceeds from Vishal Mega Mart’s IPO will go to the selling shareholders, primarily the promoter.
Valuation Metrics: Post-issue, the company is expected to have a market capitalization of ₹35,168 crore, with a P/E ratio of 67.83x and an EV/EBITDA of 28.1x.
Lead Managers: The IPO is managed by a consortium of top investment banks, including Kotak Mahindra Capital, ICICI Securities, Intensive Fiscal Services, Jefferies India, J.P. Morgan India, and Morgan Stanley India.
MobiKwik IPO
Issue Size and Structure: MobiKwik’s IPO is comparatively smaller, with a total issue size of ₹572 crore. This offering is entirely a fresh issue of 2.05 crore shares, priced between ₹265 and ₹279 per share. The minimum lot size for investors is 53 shares.
Key Dates:
- Subscription Period: December 11-13, 2024
- Allotment Date: December 16, 2024
- Listing Date: December 18, 2024
Use of Proceeds: The funds raised from MobiKwik’s IPO will be utilized for growth in financial and payment services, R&D in AI and machine learning, and expansion of payment device infrastructure.
Valuation Metrics: Post-issue, MobiKwik is expected to have a market capitalization of ₹2,295.45 crore. The IPO has garnered significant interest, with a Grey Market Premium (GMP) of around ₹125-130, indicating a 45% premium over the issue price.
Lead Managers: SBI Capital Markets and Dam Capital Advisors are the lead managers for MobiKwik’s IPO.
Key Differences
- Issue Size: Vishal Mega Mart’s IPO is significantly larger at ₹8,000 crore compared to MobiKwik’s ₹572 crore.
- Type of Issue: Vishal Mega Mart’s IPO is an OFS, while MobiKwik’s IPO is a fresh issue.
- Price Band and Lot Size: Vishal Mega Mart has a lower price band and larger lot size compared to MobiKwik.
- Use of Proceeds: Proceeds from Vishal Mega Mart’s IPO go to existing shareholders, whereas MobiKwik will use the funds for business expansion and technological advancements.
- Valuation: Vishal Mega Mart has a higher market cap and valuation metrics compared to MobiKwik.
Both IPOs offer distinct investment opportunities based on their business models, financial health, and growth prospects. Investors are advised to consider these factors along with their risk appetite before making a decision.
For more updates on these IPOs, stay tuned to our financial news section.
Do you have any specific questions about either IPO or need further details?
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resources like Moneycontrol and NSE India.
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