The Vishal Megamart IPO opens for public subscription on Wednesday, December 11, 2024. Know the analysts before investing.
Vishal Mega Mart IPO Subscription Day 1: The Vishal Mega Mart IPO is scheduled to open for public subscription today on December 11, 2024. This Rs 8,000 crore public offer will remain open for subscription till Friday, December 13, 2024. The offer consists of an offer for sale (OFS) outright. 1,025,641,025 shares.
Giant Mega Mart IPO Price Band
With support from Kedara Capital, Giant Mega Mart It has set a price band of Rs 74-78 per equity share for its Rs 8,000 crore IPO, which will close on December 13.
The minimum lot size for retail investors is 190 shares, which requires an investment of Rs 14,820. Small non-institutional investors must bid for a minimum of 14 lots, or 2,660 shares, totaling Rs 2.07 lakh. Large non-institutional investors will need to bid for at least 68 lots, or 12,920 shares, amounting to Rs 10.07 lakh.
Giant Mega Mart IPO: Important Dates
gave IPO It will open for public subscription on December 11 and close on December 13. The allotment is expected to be finalized by December 16, with the shares scheduled to be listed on BSE and NSE on December 18.
Vishal Mega Mart IPO: Gray Market Premium (GMP)
Before the issue, Vishal Megamart was boasting a GMP of around Rs 24-25, a 31 per cent premium over the issue price. This is an increase from the GMP of Rs 17 seen at the end of the week.
Gray market premium (GMP) refers to the unofficial price at which a company’s shares are traded on the gray market before it is officially listed on the stock exchange, usually during an IPO (initial public offering). This market operates outside formal exchange channels.
Traders and investors use GMP as an indicator of market sentiment towards an upcoming IPO. A high GMP suggests strong demand for shares and a favorable outlook for listing. Conversely, a low or negative GMP can indicate weak demand and a potentially less successful listing.
It is important to note that GMP is not an official or regulated metric and may vary depending on market conditions and investor sentiment. Basically, it is a speculative figure based on informal trading activities in the gray market.
Giant Mega Mart IPO Proceedings
The entire Rs 8,000 crore IPO is an offer for sale (OFS), meaning the proceeds will not go to the company but will be paid to the selling shareholders.
Overview of Vishal Mega Mart IPO
Vishal Megamart’s upcoming IPO has received positive reviews from several brokerage firms, including Bajaj Broking, Swastika Investmart, Master Capital Services, Choice, and AUM Capital. Analysts are generally optimistic about the offering from a long-term investment perspective.
Choice – long term investment recommendation
Choice Brokerage advises investors to subscribe to the giant megamart IPO with a long-term view. The firm highlighted continued growth in both top and bottom lines over the years. The company’s primary focus on Tier-2 cities, which are expected to grow at a CAGR of 32% in the diversified retail sector between CY23 and CY28, is seen as a positive indicator. While the company is calling for an EV/sales multiple of 3.8x at a higher price range, which could be fully priced, margins should benefit from continued revenue growth from store expansion and own-brand sales. There is hope. Additionally, the company’s strong inventory and working capital management suggest a sustainable long-term outlook.
AUM Capital – Long term subscription
Analysts at AUM Capital also recommend subscribing to the IPO for long-term gains. They note that rising disposable income and preference for quality, hygienic products gives the giant megamart a competitive edge over unorganized retail and competing brands such as Spencer’s and Reliance Smart Bazaar. The company’s strong financials and debt-free status further strengthen its long-term prospects.
Master Capital Services – Buy Long Term.
Master Capital Services also has a long-term recommendation for the IPO. He sees the giant megamart as a major player in the retail market, especially for middle and lower-middle income consumers. The company is expected to increase same-store sales through initiatives such as expanding its product portfolio, offering hyperlocal options, leveraging technology, and enhancing customer loyalty and in-store experiences. .
Bajaj Broking – Long Term Subscription
Analysts at Bajaj Broking have recommended a long-term subscription for the IPO, though they note that the issue is priced at a P/BV of 5.94, based on a NAV of Rs 13.14 as of September 30, 2024. They also shed light on this. High price range, price to earnings (P/E) ratio is 69.03 for FY25 annualized earnings, which is quite aggressive. For FY24 earnings, the P/E is 75.73, which may indicate that the IPO is overvalued.
Swastika Invest Mart – High risk investors
Swastika Investmart considers IPOs suitable for high-risk investors who want to gain exposure to the retail sector. While he sees giant Megamart’s market position as one of India’s leading offline retailers as a strength, he cautions that the IPO price could be too risky. However, the company’s overall outlook remains positive in their assessment.
About Vishal Mega Mart
Vishal Mega Mart (VMM) is a leading retail chain catering to middle and lower middle income consumers across India. Its product range includes a combination of in-house and third-party brands, covering three main categories: apparel, general merchandise, and fast-moving consumer goods (FMCG).
The company recorded revenue of Rs 8,900 crore in FY24 and operates 645 stores in 414 cities across 30 states and union territories, covering a retail space of 11.5 million square feet.
Disclaimer:Disclaimer: The opinions and investment tips of the experts in this News18.com report are their own and not those of the website or its management. Users are advised to consult certified experts before making any investment decision.