Vishal Mega Mart IPO GMP and listing forecast: What to expect on debut day?

The unlisted shares of Vishal Mega Mart continue to command a strong premium in the grey market, indicating a favorable listing. Here's what market experts expect from the company's D-Street debut

Vishal Mega Mart IPO listing prediction: Shares of retail chain operator Vishal Mega Mart are scheduled to make their D-Street debut tomorrow, Wednesday, December 18, 2024. The Rs 8,000 crore offering of Vishal Mega Mart, entirely an offer for sale, ended with an oversubscription of 27.28 times, driven by strong demand from Qualified Institutional Buyers (QIBs), who subscribed to 80.75 times the quota reserved for them, according to BSE data.

 

Meanwhile, the unlisted shares of Vishal Mega Mart continue to command a strong premium in the grey market, indicating a favorable listing. Sources tracking unofficial market activity revealed that the company’s shares were quoted at Rs 98.5 apiece, reflecting a grey market premium (GMP) of 26.28 per cent over the issue price of Rs 78.

 

 

The current GMP, Shivani Nyati, head of wealth at Swastika Investmart, said, suggests the possibility of a respectable listing gain. Nyati further highlighted that the IPO does not generate any money for the company. Looking at the fair valuation in relation to its peers, she added, the IPO was well received. 

 

Considering improving market sentiments and all other parameters, the company can list with a decent listing gain in the 20-25 per cent range over its issue price, said Prashanth Tapse, senior VP (Research), Mehta Equities. "The expected listing range is justified as we believe the demand was on the back of reasonable valuations compared to its listed peers and a high focus on catering to India’s growing middle- and lower-middle-income demographics, strategically targeting underpenetrated markets, and leveraging its diversified merchandise mix and value pricing to attract and retain customers with high scalability of its business model," Tapse added.

 

For allotted conservative investors, Tapse said, they can think of booking profits above 25%. While long-term investors, he suggested, should consider holding the company for the long term despite knowing the short-term volatility and risks in the markets. For non-allotted investors, he advised accumulating shares if they get dips post-listing due to profit-booking attempts.

 

Vishal Mega Mart IPO details

The Vishal Mega Mart IPO is a book-built issue of Rs 8,000 crore, consisting entirely of an offer for sale of 1,02,56,41,025 shares. The public offering was open for subscription from Wednesday, December 11, 2024, to Friday, December 13, 2024.

 

Vishal Mega Mart set the price band for the IPO at Rs 74-78 per share, with a lot size of 190 shares. Since the IPO is entirely an offer for sale, Vishal Mega Mart will not receive any proceeds.

 

About Vishal Mega Mart

Vishal Mega Mart is a one-stop shop catering to India’s middle-class and lower-middle-class consumers. The company offers a broad range of products through its portfolio of in-house and third-party brands, addressing both everyday and aspirational needs. It operates 645 locations across India, in addition to its online platform and mobile app.