Tue Dec 17 21:49:00 UTC 2024: **Vishal Mega Mart IPO Oversubscribed, Expected to List Next Week**

MUMBAI, India – Vishal Mega Mart’s initial public offering (IPO) closed on December 13th, significantly oversubscribed at 28.75 times its size, raising ₹8,000 crore (approximately $967 million USD). Retail investors alone subscribed 2.43 times their allocation. The allotment of shares is scheduled for December 16th by registrar Kfin Technologies, with shares expected to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on December 18th.

The IPO, priced between ₹74 and ₹78 per share, offered 71.79 crore equity shares. Qualified Institutional Buyers (QIBs) showed overwhelming interest, subscribing over 85 times their allocation. The strong demand suggests significant investor confidence in the company.

Vishal Mega Mart, founded in 2001, operates 645 hypermarkets across 28 states and two union territories in India, catering to middle and lower-middle-income consumers. The company’s revenue showed a compound annual growth rate (CAGR) of 26% from FY22 to FY24.

Several leading investment banks acted as book-running lead managers for the IPO, including Kotak Mahindra Capital Company, ICICI Securities, and others. While some analysts expressed concerns about the company’s valuation and reliance on price-sensitive consumers, others highlighted its strong growth potential in India’s expanding retail market. The grey market currently indicates a potential listing price premium of around 24%.

The IPO consisted entirely of an offer for sale, with the promoter selling shareholder, Samayat Services (Kedaara Capital), reducing its stake to 76% post-IPO. The company plans to utilize its existing infrastructure and expand its online presence to further capitalize on the growing Indian consumer market.

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