Vishal Mega Mart made a remarkable debut on the NSE, with its shares listing at a premium of 33.33% over the IPO price of ₹78. The stock opened at ₹104, delivering substantial gains to IPO investors. Following the stellar debut, the market capitalization of the Gurugram-based retail giant reached ₹46,891 crore.
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IPO Details and Oversubscription
The ₹8,000-crore IPO received an overwhelming response from investors, with the issue being subscribed over 27 times during the three-day bidding process. Investors placed bids for 2,064 crore shares against the 75.67 crore shares on offer. The IPO price was fixed at the upper end of the range, at ₹78 per share.
A significant portion of the proceeds, amounting to ₹2,400 crore, came from anchor investors such as:
- SBI Mutual Fund
- Government of Singapore
- Nomura Funds Ireland Public Ltd
- Axis Mutual Fund
- HDFC Mutual Fund
- ICICI Prudential Mutual Fund
The IPO was entirely an Offer for Sale (OFS) by the promoter entity, Samayat Services LLP, backed by Kedara Capital.
Growth Drivers and Business Strength
Vishal Mega Mart is known for its affordable offerings, such as ₹99 apparel and low-cost groceries. The company operates 645 stores across India, primarily targeting middle- and lower-middle-class consumers. Its focus on smaller cities, where quick-commerce is still nascent, has helped it carve a unique niche in the ₹600 billion grocery and supermarket industry.
Financial Performance
The company’s robust financial growth further fueled investor interest:
- Revenue CAGR: 26.3% (from ₹5,589 crore in FY22 to ₹8,912 crore in FY24)
- EBITDA: ₹1,249 crore in FY24
- Net Profit: ₹462 crore in FY24
Analyst Perspectives and Grey Market Buzz
Ahead of the listing, analysts expressed mixed views:
- Some advised conservative investors to book profits if listing gains exceeded 25%.
- Others highlighted long-term growth prospects, citing the company’s resilience against quick-commerce competitors and its expansion into smaller cities.
The grey market premium (GMP) climbed to 25% before the listing, indicating strong investor enthusiasm.
At the upper price band, Vishal Mega Mart’s stock is valued at a P/E ratio of 67.83x, with a return on net worth (RoNW) of 8.18%, according to Narendra Solanki, Head of Fundamental Research at Anand Rathi.
Why Vishal Mega Mart Stands Out
Experts believe Vishal Mega Mart’s strong fundamentals, focus on smaller markets, and affordable product strategy make it a compelling investment option for medium- to long-term investors.
With a robust debut and promising growth trajectory, Vishal Mega Mart has reaffirmed its position as a leader in India’s retail sector, offering significant opportunities for investors seeking value in the expanding supermarket industry