Vishal Mega Mart Share Price Updates: Stock ends at ₹111.88 apiece on NSE, 43.44% premium to IPO price

Vishal Mega Mart share price ended listing day at ₹111.88 on NSE, a 43.43% premium to the IPO price of ₹78, and at ₹111.95 on BSE, a 43.53% premium.

Vishal Mega Mart Ltd is one of the fastest growing offline-first diversified retailers in India offering a diverse range of products through its portfolio of own brands and third-party brands across three major categories namely, (i) Apparel, (ii) General merchandise and (iii) FMCG. The company has a pan-India presence comprising a network of 645 stores, its website and a mobile application (as of Sep’24).

India's retail landscape is becoming more organized, especially in Tier-2 cities and beyond. As disposable incomes rise and urbanization continues, unorganized retail is being replaced by organized brick-and-mortar stores and online platforms. These channels are expected to grow together, attracting new consumers and converting those from unorganized retail with better service and efficiency. The overall retail market in India is expected to grow at a CAGR of 8.8%-10.2% between the forecast period of CY23-CY28P to reach ₹116-124 tn from ₹76 tn in CY23.

The stock was trading at ₹111.80 per share on NSE, marking a 7.50% increase at 14:26 IST, and at ₹112 per share on BSE, showing a 1.82 increase.

• Expand pan-India store network.

• Drive Same-Store Sales Growth through expansion of portfolio and hyperlocal offering, leveraging technology, enhancing in-store experiences, etc.

• Commitment to consumer centricity - Aspirational, Affordable and Accessible.

• Driving cost efficiencies across operations.

Vishal Mega Mart made a strong debut with a 41% premium over its IPO price. Short-term investors may consider booking profits given the listing gains, while long-term investors should monitor the company’s same-store sales growth and margin expansion before deciding to hold. New investors should avoid entry at current levels and wait for a price dip before entering.

The stock was trading at ₹109.91 per share on NSE, marking a 5.91% increase at 13:19 IST, and at ₹109.71 per share on BSE, showing a 0.26% decline.

• One stop destination for middle and lower-middle income group
• Consumer-centric approach aids in loyal customer base
• Diverse and growing portfolio of Own Brands across product categories
• Pan-India presence with a track record of successful store growth

Vishal Mega Mart IPO price band has been established between ₹74 and ₹78 per equity share. The IPO consists entirely of an offer for sale (OFS) amounting to ₹8,000 crore from Samayat Services LLP, the promoter that holds a 96.46 percent stake in Vishal Mega Mart. If the shares are priced at the upper limit of ₹78, the company is projected to have a market valuation of approximately ₹36,120 crore.

According to Arun Kejriwal, the listing price of Vishal Mega Mart shares is significantly higher than anticipated or what the grey market suggested (the grey market indicated between ₹18 and ₹22). The shares debuted at ₹104 and are currently trading at ₹110. The listing price exceeded expectations, and the current trading price is even higher; more importantly, the trading volume has already surpassed half of the issue size before noon. We are less than halfway through the trading day. Over half of the issue size has already been traded, including the anchor portion. This indicates strong interest in the secondary market following the listing. While this is positive news for investors who already hold shares, it might be a good moment for them to consider taking partial profits. For individuals looking to purchase shares at this price, it would be wise to wait a couple of days for the shares to settle and observe who is buying or selling before making a decision. At this price point, the margin of comfort for investment is no longer present.

The stock was trading at ₹108.36 per share on NSE, marking a 4.19% increase at 11:26 IST, and at ₹108.49 per share on BSE, showing a 1.37% decline.

“33.33% premium over the issue price of ₹78 Listing is justified as we believe it was all because of reasonable valuations when compared to its listed peers and high focus towards catering to India's growing middle- and lower-middle-income demographics which is strategically focused on underpenetrated markets,” added Prashanth Tapse. 

Despite a subdued market along with 100% OFS, Vishal Mega Mart listing was in line with market expectation. I believe retail investors missed this opportunity wherein they had shown less interest in bidding. 33.33% premium over the issue price of ₹78 Listing is justified.

Considering volatility in the market sentiments and all other parameters, allotted conservative investors can think of booking profits today, while long term risk taking investors can consider the company to HOLD IT FOR LONG TERM despite knowing short term volatility & risk in the markets. For non-allotted investors, we advise to accumulate if we get dips post listing due to profit booking attempts.

The stock was trading at ₹108.35 per share on NSE, marking a 4.18% increase at 10:51 IST, and at ₹108.12 per share on BSE, showing a 1.71% decline.

Given its promising growth potential and initiatives aimed at cost efficiency, Vishal Mega Mart presents a compelling investment opportunity. Experts advise investors who have received shares to contemplate maintaining their holdings with a medium to long-term outlook.

"Vishal Mega Mart's IPO saw a strong debut on the stock market with a 3.33% listing gain, opening at ₹104 compared to its issue price of ₹78. This positive momentum can be attributed to its strong subscription of 28.75 times, reflecting high investor demand.

The company’s position as a leading offline retailer, consistent financial performance, and reasonable valuation resonated well with investors. However, given that this was a complete offer for sale (OFS), there are no direct benefits to the company, making it a play purely on market sentiment and its growth story in the retail sector. Investors are advised to book profits at this level, while those looking to hold should maintain a stop loss at around ₹95," said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

Vishal Mega Mart share price made a bumper debut on the bourses today. On NSE, Vishal Mega Mart share price opened at ₹104 per share, 33.33% higher than the issue price of ₹78. On BSE, Vishal Mega Mart share price today opened at ₹110 apiece, up 41.03% than the issue price.

According to Akriti Mehrotra, a Research Analyst at StoxBox, Vishal Mega Mart Ltd. has attracted considerable attention from investors, with its IPO being oversubscribed by 28.75 times, and it is set for a robust debut on December 18, 2024, potentially trading at a 24% premium over the upper band price.

According to Shivani Nyati, Vishal Mega Mart holds a strong position in the Indian market. In comparison to its rivals, Fair's valuation suggests that the IPO does not offer any financial support for the company. The IPO received a favorable response, with a subscription rate of 28 times. A grey market premium (GMP) of 25% suggests the potential for a substantial listing gain.

The Vishal Mega Mart IPO has experienced a subscription rate of 27.28 times by the end of its third day of offering, as per data from BSE. On this day of bidding, the IPO was mainly fueled by Qualified Institutional Buyers, followed closely by Non-Institutional Investors. While retail investors reached full subscription, their engagement was not particularly remarkable.

The section designated for retail investors saw a subscription rate of 2.31 times, whereas the non-institutional investor portion was subscribed 14.25 times. The quota reserved for qualified institutional buyers (QIBs) has been oversubscribed 80.75 times.

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, despite the offer was entirely an OFS, Vishal Mega received healthy demand from all sets of investors, especially from QIB category who bid more than 85x to the allocated portion while retail investors had shown less interest (2.43x) due to OFS concerns.

Considering improving market sentiments and all other parameters the company can list with a decent listing gain around ~20-25% range on its issue price.

Vishal Mega Mart IPO GMP today is ₹22. This indicates Vishal Mega Mart share price was trading at a premium of ₹22 in the grey market, according to stock market observers.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vishal Mega Mart share price is indicated at ₹100 apiece, which is 28.21% higher than the IPO price of ₹78.

Based on the grey market trends from the last 14 sessions, today’s IPO GMP is on the rise and suggests a strong listing. The lowest GMP recorded is ₹13, whereas the highest reaches ₹25, as noted by experts at investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.