Vishal Mega Mart IPO booked 51% on Day 1; check subscription status, price band & more

Vishal Mega Mart initial public offering (IPO) received a lukewarm response from investors on Wednesday, December 11, the first day of subscription.

The mainboard issue was subscribed 51% on the first day. Investors across categories applied for over 38.58 crore shares compared to 75.67 crore shares on offer as per NSE data till 5 pm on day 1. The IPO will close for subscription on Friday, December 13.

If you are planning to bid for the Vishal Mega Mart IPO, here are some important details about the public issue.

Vishal Mega Mart IPO subscription status

The retail investors’ segment of the IPO was subscribed 53%, with bids for more than 19.92 crore shares against 37.84 crore shares on offer. The Non-Institutional Investors (NIIs) booked their quota 1.11 times. The NIIs applied for 18.03 crore shares against 16.21 crore shares set aside for them. In the Qualified Institutional Buyers (QIBs) category, the company received bids for only 62.95 lakh shares against the allocated 21.62 crore shares, leading to a subscription of 3%.

Vishal Mega Mart IPO details

The ₹8,000-crore Vishal Mega Mart IPO is a 100% book-building issue. The IPO is entirely an offer-for-sale (OFS) of 102.56 crore shares, with no fresh issuance.

The company has set a price band of ₹74 to ₹78 per share for the IPO. The minimum bid quantity, or lot size, for an application is 190 shares. This means that retail investors need to make a minimum investment of ₹14,820.

Vishal Mega Mart has appointed Kotak Mahindra Capital Co. Ltd, ICICI Securities Ltd, Intensive Fiscal Services Pvt. Ltd, Jefferies India Pvt. Ltd, J.P. Morgan India Pvt. Ltd and Morgan Stanley India Co. Pvt Ltd as the book-running lead managers of the issue. Kfin Technologies Ltd has been hired as the registrar.

Before the IPO launch, Vishal Mega Mart raised ₹2,400 crore from anchor investors. The company allocated 30.77 crore to anchor investors at an average price of ₹78 per equity share. Out of this, 16.4 crore shares, or 53.3% of the anchor investor allocation, were allocated to 18 domestic mutual funds through a total of 42 schemes.

Vishal Mega Mart IPO dates

After subscription, the company will finalise the IPO share allotment status on Monday, December 16. Successful bidders can expect shares to be credited to their Demat accounts on Tuesday, December 17, with others receiving the refund of the bidding amount in their bank accounts the same day.

Shares of Vishal Mega Mart are expected to be listed on the BSE and NSE on December 18.

Vishal Mega Mart IPO: Use of proceeds

Vishal Mega Mart will not receive any funds from the IPO as it’s an entirely offer-for-sale. The promoter selling shareholder will be entitled to entire proceeds of the offer after deduction of the offer-related expenses and the applicable taxes.

About Vishal Mega Mart Ltd

Vishal Mega Mart is a leading player in the retail industry. The supermarket chain operator is primarily focused on catering to the needs of middle- and lower-middle income groups across India. The company offers a diverse range of products through its portfolio of own brands and third-party merchandise. It offers products across three major categories— apparel, general merchandise and fast-moving consumer goods. Its pan-India network of stores included 645 Vishal Mega Mart stores (as of September 30, 2024). The company also sells its products through the Vishal Mega Mart mobile app and website.

The company’s revenue increased by 17.4% to ₹8,945.13 crore in 2023-24 compared with ₹7,618.89 crore in 2022-23. Profit after tax (PAT) rose by 43.78% to ₹461.94 in FY24 compared with ₹321.27 in FY23. For six months ended September 2024, its revenue stood at ₹5,053.42 crore, while PAT was ₹254.14 crore.