Vishal Mega Mart IPO enters final day with modest response
The ₹8,000-crore IPO of Vishal Mega Mart closes today. The IPO has received bids for 1.54 times so far. The issue comes out with a price band of ₹74-78, and the market lot is 190 shares.
The proposed IPO is an Offer For Sale (OFS) of shares by promoter Samayat Services LLP, with no fresh issue of equity shares. Currently, Samayat Services LLP holds a 96.55 per cent stake in the Gurugram-based supermart major. As the IPO is an OFS, the company will not receive any funds from the IPO proceeds.
The Kedaara Capital-backed company has reserved 50 per cent of the net offer to QIB, 35 per cent to retail investors, and the balance 15 per cent to non-institutional investors (NII). While the respective retail investors’ and HNI portions were subscribed 1.52 times and 3.84 times, respectively, the QIB portion remains undersubscribed at 0.48 times. However, QIBs are generally bid aggressively only on the last day of the issue closing.
Vishal Mega Mart is a one-stop destination catering to middle—and lower-middle-income consumers in India. The product range includes both in-house and third-party brands and covers three key categories: apparel, general merchandise, and fast-moving consumer goods (FMCG).
On Tuesday, the Gurugram-based Vishal Mega Mart raised ₹2,400 crore from anchor investors as part of the IPO process by finalising the allocation of 30.76 crore shares to anchor investors at ₹78 per share. Among the marquee investors included global funds such as Government of Singapore, Monetary Authority of Singapore, JP Morgan, Custody Bank of Japan, Nomura, Blackrock, Government Pension Fund Global, Schroder International Selection Fund, HSBC Global, TIMF Holdings, CLSA Global, and Prudential Hong Kong and domestic institutions Domestic institutional investors like SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mahindra AMC, Nippon Life India, Axis Mutual Fund, Aditya Birla Sun Life Trustee, Franklin, Mirae Asset, HDFC Life Insurance, SBI Life Insurance, Canara Robeco MF, Invesco, Tata MF, Max Life Insurance, Bajaj Holdings, UTI MF, Bajaj Allianz General Insurance, Baroda BNP Paribas MF and Kotak Mahindra Life Insurance.
Of the total 30.76 crore shares allotted to the anchor investors, 16.41 crore shares were allocated to 18 domestic mutual funds, which applied through 44 schemes.
As of June 30, 2024, it operates 626 Vishal Mega Mart stores across India, along with a mobile app and website. In the six months to September 30, 2024, the company reported a net profit of ₹254 crore on revenue of ₹5032.5 crore.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India, and Morgan Stanley India Company are the book-running lead managers for the issue.
