Vishal Mega Mart IPO Closes: GMP, Subscription Status, and More Details

The highly anticipated Rs 8,000-crore public offering from Vishal Mega Mart, a leader in the retail store industry, is set to close today, Friday, December 13, 2024. The IPO has witnessed significant participation from investors, as per data from the National Stock Exchange (NSE). It has garnered bids for 1,42,42,53,490 shares, surpassing the 75,67,56,757 shares available for subscription. This results in an oversubscription rate of 1.88 times.

Subscription Breakdown: Strong Demand from NIIs and RIIs

The demand for the Vishal Mega Mart IPO has been led by Non-Institutional Investors (NIIs), who have oversubscribed their reserved category by an impressive 5.02 times. Retail Individual Investors (RIIs) have also shown strong interest, subscribing 1.32 times their quota. However, the portion reserved for Qualified Institutional Buyers (QIBs) has seen a lower subscription rate, standing at 0.51 times as of 10:24 AM on Friday, December 13, 2024.

IPO Pricing and Lot Sizes

The public issue, which is a complete offer-for-sale (OFS) of equity shares, has a price band of Rs 74-78 per share. The lot size for the IPO is 190 shares, and investors can bid for a minimum of one lot (190 shares). A retail investor would need a minimum of Rs 14,820 to participate in one lot, while the maximum investment for 13 lots (2,470 shares) would require Rs 1,92,660.

Grey Market Premium (GMP) and Market Trends

The Vishal Mega Mart IPO has aligned with positive grey market trends. The unlisted shares of the company were trading at Rs 94 apiece, indicating a grey market premium (GMP) of Rs 16, or 20.51% above the upper price band of Rs 78. However, the GMP has slightly decreased from Rs 21, which was recorded when the IPO opened on December 11, 2024.

Positive Outlook from Brokerages

Brokerages, including Bajaj Broking, Swastika Investmart, Master Capital Services, Choice, and AUM Capital, have reviewed the Vishal Mega Mart IPO and expressed positive long-term views. Analysts are optimistic about the company’s potential, given its strong retail presence and brand value.

IPO Allotment and Listing Details

The basis of allotment for the Vishal Mega Mart IPO is expected to be finalized on Monday, December 16, 2024. Successful applicants will receive their shares in their demat accounts by Tuesday, December 17, 2024. The shares of Vishal Mega Mart are scheduled to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Wednesday, December 18, 2024.

Offer-for-Sale Structure and Proceeds

It is important to note that Vishal Mega Mart’s IPO comprises an entire offer-for-sale (OFS), meaning the company will not receive any proceeds from the issue. Instead, Samayat Services LLP, the promoter selling shareholder, will receive the entire proceeds after deducting expenses and taxes related to the offering.

Vishal Mega Mart’s Business Model and Operations

Vishal Mega Mart operates through a diverse product portfolio that includes both own brands and third-party merchandise, catering to customers' daily and aspirational needs. The company is engaged in wholesale, cash-and-carry trading under the Vishal brand and also grants franchise rights for Vishal Mega Mart stores. Additionally, it operates retail stores via its wholly owned subsidiary, Airplaza Retail Holdings (ARHPL).