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HomeMarket NewsVishal Mega Mart shares end trading debut 45% above their IPO price
Investors participating in the Vishal Mega Mart IPO had placed bids for over ₹1.6 lakh crore during the three-day bidding period.
By Hormaz Fatakia December 18, 2024, 4:16:15 PM IST (Updated)
Shares of Vishal Mega Mart Ltd., the supermarket chain operator listed at ₹104 per share, which is a 33.3% premium compared to its IPO price of ₹78. The stock ended the trading session with gains of 45%.
The stock also ended the session with a market capitalisation of over ₹50,000 crore.
The company's ₹8,000 crore IPO was priced between ₹74 to ₹78 per share.
Investors participating in the IPO had placed bids for over ₹1.6 lakh crore during the three-day bidding period.
Qualified Institutional Buyers (QIBs) led the demand, subscribing 80.75 times the number of shares reserved for them. The portion reserved for non-institutional investors (NIIs) was subscribed 14.24 times, while the retail investor portion was subscribed only 2.31 times.
The entire issue of ₹8,000 crore was an Offer for Sale (OFS), which means that the company did not receive any proceeds from the IPO.
In an interaction with CNBC-TV18 earlier, the management of Vishal Mega Mart had mentioned that the company did not have any immediate need for funds and hence the IPO was a complete Offer For Sale.
This is what the management said on the road ahead for the company.
Planning to add 80-100 stores annually
Operating quick commerce within 7-10 kms of our stores
Encouraged by the early response on Quick commerce, present in 375 cities
Vishal Mega Mart's management said that they currently have cash worth ₹700 crore on their books with no debt and 30% to 40% of that cash will go into new store additions.
Promoters have long term commitment to the business and are excited about the future is also something that the management had added.
First Published:
Dec 18, 2024 10:00 AM
IST
