Vishal Mega Mart made an impressive debut on the NSE, listing at ₹104 per share, reflecting a premium of 33.33% over its IPO allotment price of ₹78. The strong opening brought substantial gains for IPO investors and pushed the market capitalization of the Gurugram based retail giant to ₹46,891 crore.
The momentum continued as shares climbed further to ₹111.19 on the NSE, delivering an impressive 42% gain over the issue price.
Vishal Mega Mart’s ₹8,000-crore IPO received a stellar response, with the public issue being oversubscribed 27 times during the three-day bidding window. Investors bid for 2,064 crore shares against 75.67 crore shares on offer. The IPO price was set in the range of ₹74-78 per share, with allotments made at the upper end of the band.
Anchor investors contributed significantly, with ₹2,400 crore coming from prominent names like SBI Mutual Fund, Government of Singapore, Nomura Funds Ireland Public Ltd, Axis Mutual Fund, HDFC Mutual Fund, and ICICI Prudential Mutual Fund. The IPO was an entirely offer-for-sale issue by promoter entity Samayat Services LLP, which is backed by private equity firm Kedara Capital.
Ahead of the debut, Vishal Mega Mart’s grey market premium (GMP) reflected strong investor interest, rising by 25%. The company’s robust financial performance further bolstered market confidence. Revenue grew at an impressive CAGR of 26.3% from ₹5,589 crore in FY22 to ₹8,912 crore in FY24. Meanwhile, EBITDA surged to ₹1,249 crore, and net profit reached ₹462 crore during FY24.
Vishal Mega Mart’s scale and unique market positioning differentiate it from competitors like Trent and D-Mart. While these companies focus on tier-1 cities, Vishal Mega Mart caters primarily to smaller cities, with three out of four stores located in non-metropolitan areas. Experts believe this focus on tier-2 and tier-3 cities, along with its resilience against the rising quick-commerce competition, positions the company as a lucrative opportunity for medium to long term investors.
