Vishal Mega Mart IPO Commands 41% Premium On Listing

The initial public offering (IPO) of Vishal Mega Mart debuted with a 41 per cent premium at Rs 110 on the National Stock Exchange (NSE) against its issue price of Rs 78. 

The Rs 8,000 crore IPO consisted exclusively of an offer-for-sale (OFS) component, with the price band fixed at Rs 74 to 78 per equity share. 

During its subscription phase, Vishal Megal Mart IPO received bids worth over Rs 1,50,000 crore. The retail investors category was subscribed 2.43 times, while qualified institutions bid on the issue 85.11 times. 

Expert Note

Vishal Mega Mart is expanding rapidly in underserved tier-2 and tier-3 cities, capitalising on growth opportunities while driving same-store sales growth through a broader product portfolio and enhanced in-store experiences. With strong growth prospects and cost-efficiency initiatives, Vishal Mega Mart is an attractive investment. We recommend investors who have been allotted shares to ‘hold’ their positions from a medium- to long-term perspective,” said Akriti Mehrotra, Research Analyst, StoxBox.

IPO Objectives
The company will not receive any proceeds from the OFS from the promoter-selling shareholder. The promoter selling shareholder will be entitled to the entirety of the proceeds of the OFS after deducting its portion of the offer-related expenses and the relevant taxes thereon. 

However, the firm will get benefits on listing in the public market, which will enhance the brand’s visibility and provide liquidity to the shareholders. 

 Firm’s Financials

In terms of financial performance, for the past three fiscal years, the company reported a total income Rs 5,653.85 crore with Rs 202.77 crore profit in FY22 and revenue of Rs 7,618.89 crore with Rs 321.27 crore in FY23.

The company registered total income of Rs 8,945.13 crore with net profit of Rs 461.94 crore in FY24. For the first half of FY25, ending September 2024, the company achieved a net profit of Rs 254.14 crore on a total income of Rs 5,053.42 crore.

The company reported profit after tax (PAT) margins of 4.24 per cent in FY23 and 5.18 per cent in FY24.