Vishal Mega Mart IPO listing today
Of the three listings today, the IPO of Vishal Mega Mart was the largest at ₹8,000 crore. The initial public offering was subscribed over 27 times on the last day of the issue with bids coming in for over 2,064 crore shares as against the 75.7 crore shares on offer, thanks mainly to institutional investors. The IPO the came out with a price band of ₹74-78 and the company fixed the IPO price at the upper end. According to market buzz, that the stock is expected listed with a premium of about ₹18-20.
The quota for qualified institutional buyers was subscribed nearly 81 times while non-institutional investors’ over 16 times. Demand from retail investors was relatively muted being subscribed only 2.3 times,
The retailer’s ₹8,000 crore IPO is entirely through an offer for sale by its promoter. 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.
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The Kedaara Capital-backed company 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.
Targeted towards the middle- and low-income consumers, the retailer has a significant presence in tier-II cities with a store network of around 645 at the end of September.
Despite a dip in discretionary demand among urban consumers in the country, the company has managed decent growth at over 12 per cent across its three main categories of apparel, general merchandise and FMCG.
