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Vishal Mega Mart IPO opens for public subscription on Wednesday, December 11, 2024; Know analysts take earlier than investing
Vishal Mega Mart IPO Subscription Day 1
Vishal Mega Mart IPO Subscription Day 1: The Vishal Mega Mart IPO is scheduled to open for public subscription at this time, December 11, 2024. This Rs 8,000 crore public providing will stay open for subscription till Friday, December 13, 2024. The provide consists totally of a suggestion on the market (OFS) of 1,025,641,025 shares.
Vishal Mega Mart IPO Price Band
Backed by Kedaara Capital, Vishal Mega Mart has set a worth band of Rs 74-78 per fairness share for its Rs 8,000 crore IPO, which can shut on December 13. The bidding window for anchor traders will open on December 10 and stay open for a day.
The minimal lot measurement for retail traders is 190 shares, requiring an funding of Rs 14,820. Small non-institutional traders should bid for at least 14 tons, or 2,660 shares, totaling Rs 2.07 lakh. Large non-institutional traders might want to bid for a minimum of 68 tons, or 12,920 shares, amounting to Rs 10.07 lakh.
Vishal Mega Mart IPO: Key Dates
The IPO will open for public subscription on December 11 and shut on December 13. Allotments are anticipated to be finalized by December 16, with the shares scheduled for itemizing on the BSE and NSE on December 18.
Vishal Mega Mart IPO: Grey Market Premium (GMP)
The gray market is exhibiting robust demand for Vishal Mega Mart shares, with the present GMP of Rs 24 signaling a possible itemizing premium of round 31%. This marks a rise from the Rs 17 GMP seen over the weekend.
Vishal Mega Mart IPO Proceeds
The total Rs 8,000 crore IPO is a suggestion on the market (OFS), which means that the proceeds won’t go to the corporate however will probably be paid to the promoting shareholders.
Vishal Mega Mart IPO Review
Vishal Mega Mart’s upcoming IPO has garnered constructive evaluations from a number of brokerage companies, together with Bajaj Broking, Swastika Investmart, Master Capital Services, Choice, and AUM Capital. Analysts are typically optimistic concerning the providing from a long-term funding perspective.
Choice – Long-Term Investment Recommendation
Choice Brokerage has suggested traders to subscribe to the Vishal Mega Mart IPO with a long-term view. The agency highlighted the regular development in each the highest and backside strains over time. The firm’s major deal with Tier-2 cities, that are anticipated to develop at a 32% CAGR within the diversified retail sector between CY23 and CY28, is seen as a constructive indicator. While the corporate is demanding an EV/Sales a number of of three.8x on the greater worth vary, which can appear absolutely priced, the regular income development from increasing shops and its personal model gross sales is anticipated to learn margins. Additionally, the corporate’s robust stock and dealing capital administration recommend a sustainable long-term outlook.
AUM Capital – Long-Term Subscription
AUM Capital analysts additionally advocate subscribing to the IPO for long-term beneficial properties. They be aware that rising disposable earnings and a choice for high quality, hygienic merchandise present Vishal Mega Mart with a aggressive edge over unorganised retail and competing manufacturers equivalent to Spencer’s and Reliance Smart Bazaar. The firm’s sturdy financials and debt-free standing additional strengthen its long-term prospects.
Master Capital Services – Long-Term Buy
Master Capital Services has additionally given a long-term suggestion for the IPO. They see Vishal Mega Mart as a key participant within the retail market, notably for center and lower-middle-income shoppers. The firm is anticipated to drive same-store gross sales development by means of initiatives equivalent to increasing its product portfolio, providing hyperlocal choices, leveraging know-how, and enhancing buyer loyalty and in-store experiences.
Bajaj Broking – Long-Term Subscription
Bajaj Broking analysts have beneficial a long-term subscription for the IPO, although they be aware that the difficulty is priced at a P/BV of 5.94, based mostly on an NAV of Rs 13.14 as of September 30, 2024. They additionally spotlight that on the greater worth vary, the price-to-earnings (P/E) ratio stands at 69.03 for FY25 annualized earnings, which is kind of aggressive. For FY24 earnings, the P/E stands at 75.73, which might point out that the IPO is priced on the upper facet.
Swastika Investmart – High-Risk Investors
Swastika Investmart views the IPO as appropriate for high-risk traders seeking to achieve publicity to the retail sector. While they contemplate Vishal Mega Mart’s market place as one in all India’s main offline retailers as a power, they warning that the IPO’s valuation could carry greater danger. However, the general outlook for the corporate stays constructive of their evaluation.
About Vishal Mega Mart
Vishal Mega Mart (VMM) is a number one retail chain catering to middle- and lower-middle-income shoppers throughout India. Its product vary features a mixture of in-house and third-party manufacturers, protecting three key classes: attire, basic merchandise, and fast-moving shopper items (FMCG).
The firm recorded revenues of Rs 8,900 crore in FY24 and operates 645 shops throughout 414 cities in 30 states and union territories, protecting a retail house of 11.5 million sq. toes.
Disclaimer:Disclaimer: The views and funding ideas by consultants on this News18.com report are their very own and never these of the web site or its administration. Users are suggested to test with licensed consultants earlier than taking any funding selections.
