Vishal Mega Mart shares settle nearly 45% higher on debut trade, market valuation crosses Rs 50,000 crore
Vishal Mega Mart IPO shares listing: Gurugram-based supermarket chain made its stock exchange debut with strong listing gains for IPO investors, matching market expectations.
Vishal Mega Mart shares settled nearly 45 percent higher on debut trade on December 18 with its market valuation crossing the Rs 50,000 crore mark.
The stock ended 44 percent higher at Rs 111.88 per share on the NSE against its issue price of Rs 78 apiece.
The scrip exceeded expectations with a stellar debut on the NSE, listing at a premium of 33.33 percent over the IPO allotment price of Rs 78.
The stock opened at Rs 104, delivering impressive gains for IPO investors. With the listing, the market capitalisation of Gurugram-based retail giant Vishal Mega Mart has reached Rs 50,484.13 crore.
Later, it extended gains to quote at Rs 114.40 per share on the NSE, rising 46.66 percent.
The Rs 8,000-crore IPO of Vishal Mega Mart received an overwhelming response, with the public issue subscribed over 27 times during the three-day bidding last week. Investors placed bids for 2,064 crore shares against 75.67 crore shares on offer. The IPO was priced in the range of Rs 74-78 per share, with allotments finalised at the upper end of the band.
A significant portion of Vishal Mega Mart IPO proceeds, amounting to Rs 2,400 crore, came from anchor investors, including SBI Mutual Fund, Government of Singapore, Nomura Funds Ireland Public Ltd, Axis Mutual Fund (MF), HDFC MF and ICICI Prudential MF. The IPO was entirely an offer for sale by the promoter entity Samayat Services LLP, which is backed by Kedara Capital.
Known for its low-cost offerings such as Rs 99 apparel and affordable groceries, Vishal Mega Mart operates a pan-India network of 645 stores, largely targeting middle and lower-middle-class consumers. The company’s focus on smaller cities, where quick-commerce remains nascent, has helped it carve a niche in India’s Rs 600 billion grocery and supermarket industry, shielding it from some of the challenges faced by its peers.
Analysts were optimistic about the listing, with the grey market premium (GMP) climbing to 25 percent ahead of the debut, reflecting strong investor interest. The company’s financial performance also bolstered confidence, with revenue growing at a CAGR of 26.3 percent to Rs 8,912 crore in FY24, up from Rs 5,589 crore in FY22. EBITDA rose to Rs 1,249 crore, while net profit stood at Rs 462 crore in FY24.
Ahead of the listing, analysts offered mixed recommendations on Vishal Mega Mart stock. Some advised conservative investors to book profits if listing gains exceeded 25 percent, while others highlighted the company’s long-term growth prospects. “At the upper price band, the stock is valued at a P/E ratio of 67.83x, with a return on net worth of 8.18 percent,” said Narendra Solanki, Head of Fundamental Research at Anand Rathi.
Vishal Mega Mart’s strong financials, combined with its focus on smaller cities and resilience against quick-commerce competition, make it an attractive opportunity for medium- to long-term investors, according to experts.
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