Vishal Mega Mart IPO Day 3 Live Updates: The initial share offering of supermarket chain Vishal Mega Mart, valued at ₹8,000 crore, achieved full subscription on the second day of bidding on Thursday, concluding with a subscription rate of 1.54 times. The segment allocated for non-institutional investors (NIIs) saw a subscription rate of 3.84 times, while Retail Individual Investors (RIIs) subscribed at 1.16 times. The portion designated for Qualified Institutional Buyers (QIBs) received a subscription of 48 percent.
On the first day of bidding, the subscription status for the Vishal Mega Mart IPO was at 51%, according to BSE data. Although the IPO embarked on its journey in a dynamic market, the allocation for NIIs was fully subscribed. On Tuesday, Vishal Mega Mart announced that it raised ₹2,400 crore from anchor investors.
Vishal Mega Mart IPO price band has been established between ₹74 and ₹78 per equity share. The IPO consists entirely of an offer for sale (OFS) amounting to ₹8,000 crore from Samayat Services LLP, the promoter that holds a 96.46 percent stake in Vishal Mega Mart. If the shares are priced at the upper limit of ₹78, the company is projected to have a market valuation of approximately ₹36,120 crore.
Launched in 2018, Vishal Mega Mart functions as a hypermarket chain offering a diverse array of products, including clothing, foodstuffs, electronics, and household items.
Vishal Mega Mart IPO Day 3 Live: Issue booked 2.37x on third bidding day so far
The initial public offer of Vishal Mega Mart IPO has been subscribed 2.37 times on the third day of subscription today, at 11:27 IST, as per BSE data.
The initial share sale received bid for 1,78,98,18,620 shares against 75,67,56,757 shares on offer, according to BSE.
The portion for retail investors received 1.50 times subscription while the quota for non-institutional investors got subscribed 6.73 times. The qualified institutional buyers (QIBs) part is booked 61%.
Vishal Mega Mart IPO Day 3 Live: All you need to know about E-Commerce Industry
The e-commerce industry witnessed a phenomenal 36.8% YoY growth in terms of order volumes. As consumers prefer to shop online throughout the year, this fast-changing consumer preference towards online shopping reveals the mature status acquired by e-commerce brands in India. India’s digital economy is expected to touch US$ 800 billion by 2030, and the E-Commerce market is expected to touch US$ 350 billion in GMV by 2030.
Vishal Mega Mart IPO Day 3 Live: Check out FDI Norms
100% FDI allowed under automatic route in B2B E-commerce and in marketplace model of e-commerce. 100% FDI under Government approval route for E-Commerce by Food Retail Companies, provided products retailed are manufactured and/or produced in India.
Vishal Mega Mart IPO Day 3 Live: All you need to know about offline stores
The company’s offline channel comprises of 645 stores across 414 cities in India, with an aggregate store area of 11.49 mn square feet, as of September 30, 2024.
Vishal Mega Mart IPO Day 3 Live: Issue booked 1.96x on third bidding day so far
The initial public offer of Vishal Mega Mart IPO has been subscribed 1.96 times on the third day of subscription today, at 10:33 IST, as per BSE data.
The initial share sale received bid for 1,48,66,09,400 shares against 75,67,56,757 shares on offer, according to BSE.
The portion for retail investors received 1.34 times subscription while the quota for non-institutional investors got subscribed 5.36 times. The qualified institutional buyers (QIBs) part is booked 51%.
Vishal Mega Mart IPO Day 3 Live: All you need to know about loyal programme
The company’s loyalty program was awarded the “Best Loyalty Programme of the Year Food Retail and Non-Food Retail” at the International Loyalty Awards 2023. The Company has 133.82 million customers registered under the loyalty program as at September 30, 2024.
Vishal Mega Mart IPO Day 3 Live: Check details about lead managers
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, J P Morgan India, Morgan Stanley India Company are the book-running lead managers for the issue.
Vishal Mega Mart IPO Day 3 Live: All you need to know about retail market
According to the Redseer report, India’s aspirational retail market was valued at ₹68-72 trillion in 2023 and is expected to reach ₹104-112 trillion by 2028, growing at a compound annual growth rate (CAGR) of 9 percent. This shift towards organized retail is driven by increased quality expectations, a wider variety of products, improved pricing—particularly in fast-moving consumer goods (FMCG)—urbanization, and growth opportunities for organized players like Vishal Mega Mart.
Vishal Mega Mart IPO Day 3 Live: Here’s what Aum Capital says about the issue
Vishal Mega Mart Ltd is on the fast growing super market retail chain stores in India. Rising disposable income and a preference for quality and hygienic products amongst the population gives established companies like Vishal Mega Mart an edge over the unorganized sector as well as stiff competition to other established branded retails chains like Spencers and Reliance Smart Bazaar. Healthy financials and a debt free status gives it an impetus. We would recommend a “SUBSCRIBE” for the long term.
Vishal Mega Mart IPO Day 3 Live: IPO reservation details
Vishal Mega Mart IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
Vishal Mega Mart IPO Day 3 Live: All you need to know about the firm’s own brand
The company depends entirely on a network of contract manufacturers to produce products for its brands. This strategy enables Vishal Mega Mart to maintain an asset-light business model, prioritizing design, branding, and retail operations while outsourcing the manufacturing process to specialized vendors.
Vishal Mega Mart IPO Day 3 Live: Here’s all you need to know about the financials
The firm has shown strong revenue growth, driven by a focus on operational efficiency and cost management. Revenue from operations increased at a compound annual growth rate (CAGR) of 26.3%, rising from Rs. 5,589 crore in FY22 to Rs. 8,912 crore in FY24. Operating EBITDA grew at a CAGR of 24.6%, from Rs. 804 crore in FY22 to Rs. 1,249 crore in FY24. Meanwhile, Profit After Tax (PAT) surged at a CAGR of 50.9%, reaching Rs. 462 crore in FY24. Operating EBITDA margins remained around 14%, while PAT margins varied between 3.6% and 5.2% during different periods.
Vishal Mega Mart IPO Day 3 Live: Check out Ashika Research’s views on the issue
In terms of the valuations, on the higher price band, VMML demands P/E multiple of 69.2x post issue H1FY25 annualized EPS and EV/EBITDA multiple of 28.1x. Hence, it is recommended to “SUBSCRIBE” the issue from the long term perspective.
Vishal Mega Mart IPO Day 3 Live: Check out GMP ahead of Day 3
Vishal Mega Mart IPO GMP today is +16. This indicates Vishal Mega Mart share price was trading at a premium of ₹16 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vishal Mega Mart share price is indicated at ₹94 apiece, which is 20.51% higher than the IPO price of ₹78.
Based on the grey market trends from the last nine sessions, today’s IPO GMP is on the rise and suggests a tepid listing. The lowest GMP recorded is ₹13, whereas the highest reaches ₹25, as noted by experts at investorgain.com.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
