The ₹8,000-crore public issue of Vishal Mega Mart, a leading retail chain, is set to close today, Friday, December 13, 2024. So far, the IPO has witnessed solid investor interest, with bids for 1,42,42,53,490 shares against the 75,67,56,757 shares available, resulting in an overall subscription of 1.88 times, as per NSE data.
The strongest demand has come from Non-Institutional Investors (NIIs), whose reserved portion is oversubscribed 5.02 times. Retail Individual Investors (RIIs) have subscribed 1.32 times, while Qualified Institutional Buyers (QIBs) have subscribed 0.51 times as of 10:24 AM.
This IPO, which is entirely an offer-for-sale (OFS) of equity shares, is priced between ₹74 and ₹78 per share with a minimum lot size of 190 shares. Retail investors need at least ₹14,820 for one lot and up to ₹1,92,660 for the maximum 13 lots (2,470 shares).
Grey Market Activity:
In the grey market, Vishal Mega Mart shares are trading at ₹94 each, reflecting a premium of ₹16 (20.51%) over the upper price band of ₹78. However, this premium has dropped from ₹21 recorded on December 11, when the issue opened for subscription.
Brokerages such as Bajaj Broking, Swastika Investmart, Master Capital Services, Choice, and AUM Capital have shared optimistic long-term views on the IPO.
Timeline for Allotment and Listing:
The allotment of shares is expected to be finalized on Monday, December 16, 2024, and the shares will likely be credited to successful bidders’ demat accounts by Tuesday, December 17, 2024. Trading of Vishal Mega Mart shares on the BSE and NSE is tentatively scheduled to begin on Wednesday, December 18, 2024.
Proceeds and Business Overview:
Since this is a full OFS, Vishal Mega Mart will not receive any funds from the issue. Instead, the proceeds will go to the selling promoter, Samayat Services LLP, after deducting taxes and related expenses.
Vishal Mega Mart caters to both aspirational and daily needs through a mix of in-house and third-party brands. It operates in the wholesale and cash-and-carry space under the Vishal brand while granting franchise rights for its stores. The retail stores are managed by its subsidiary, Airplaza Retail Holdings (ARHPL).
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