Mumbai: Shares of Vishal Retail Ltd., which runs supermarkets targeted at the Indian middle-class, listed at Rs472.50 on 4 July, up 75% against its issue price of Rs270 per share.
The stock touched a high of Rs781 on the BSE and Rs780 on the NSE within minutes of opening.
The company raised Rs1.1 billion in its initial public offering last month, the proceeds of which would be used to expand its network of stores.
It currently has 50 stores and plans to open 22 more. It reported a net profit of Rs249.83 million on revenue of over Rs6 billion in the year to March 2007.
Smaller retailers such as Vishal Retail are raising money to compete with Reliance Industries Ltd., India’s most valuable company and billionaire Sunil Mittal’s Bharti Group. While Reliance is spending more than $5.5 billion, Bharti Group plans to invest $2.5 billion in a retail network and a wholesaling venture with Wal-Mart Stores Inc.
Vishal Retail raised Rs290 million in June last year in a pre-IPO placement, selling 200,000 shares to Housing Development Finance Corp. and 1.25 million shares to some private investors at Rs200 apiece.