 "Vishal Mega Mart shares decline 6% in trade one day after decent listing")
Vishal Mega Mart shares slipped 5.8 per cent in Thursday's trade and registed an intraday low at Rs 105.37 per share on BSE. The stock slipped a day after making a decent debut on bourses with a 33 per cent premium on NSE at Rs 104 per share.
Around 10:43 AM, Vishal Mega Mart share price was down 3.29 per cent at Rs 108.27 per share on BSE. In comparison, the BSE Sensex was down 1.06 per cent at 79,332.65. The market capitalisation of the company stood at Rs 48,851.98 crore.
The stock is currently trading 38 per cent higher than its issue price of Rs 78 per share. Shares of Vishal Mega Mart were listed on exchanges on Wednesday, December 19, 2024. The scrip was listed at Rs 110 apiece on the BSE, a premium of 41 per cent over the issue price and on the National Stock Exchange (NSE), Vishal Mega Mart shares were listed with a premium of 33.33 per cent at Rs 104 apiece, against the issue price.
Vishal Mega Mart IPO comprised an entirely offer-for-sale (OFS) of equity shares worth Rs 8,000 crore and was available for subscription from Wednesday, December 11, 2024, to Friday, December 13, 2024. The public offering was priced in the band of Rs 74-Rs 78 with a lot size of 190 shares and closed with an oversubscription of 27.28 times, driven by strong demand from Qualified Institutional Buyers (QIBs), who subscribed 80.75 times the quota reserved for them, according to BSE data. Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) oversubscribed their respective categories by 14.24 times and 2.31 times, respectively.
Notably, since the public offering is an OFS, Vishal Mega Mart will not receive any proceeds from it. The promoter-selling shareholder will receive the entirety of the proceeds after deducting offer-related expenses and relevant taxes, as per the Red Herring Prospectus (RHP).
Vishal Mega Mart is a hypermarket chain operating nearly 645 stores across India, offering a wide range of products. It targets middle and lower-middle-income consumers through its stores and online platforms. The company has a presence in 414 cities across 28 states and two union territories. As of September 30, 2024, Vishal Mega Mart employed 16,537 people.
In the past one year, Vishal Mega Mart shares have lost per cent against Sensex's rise of 12 per cent.