The initial public offering (IPO) of Vishal Mega Mart, one of India’s leading supermarket chains, saw a subscription rate of 51% on its first day. The issue attracted 38.58 crore consolidated share bids against the total offering of 75.67 crore shares available for subscription.
Breakdown of subscriptions:
- The retail portion of the IPO was subscribed 53%, with 19.92 crore bids received out of the 37.83 crore shares reserved for retail investors.
- The non-institutional category was fully subscribed at 1.11 times (111%).
- The qualified institutional buyer (QIB) category is yet to pick up momentum, with subscriptions expected in the coming days.
The IPO is set to close on December 13, 2024.
Offer details and Grey Market Premium (GMP):
The IPO is entirely an offer for sale (OFS) of 102.56 crore shares, valued at ₹8,000 crore. Vishal Mega Mart’s shares were trading at a premium of ₹22 per share in the grey market (GMP), reflecting a 28% premium over the upper price band of ₹78. Earlier in the day, the GMP stood at ₹19, indicating strong investor demand.
Price band and lot size:
The company has set the price band for the IPO at ₹74-78 per equity share, with a minimum application size of 190 shares per lot.
The strong grey market performance and the encouraging Day 1 subscription numbers indicate significant investor interest in Vishal Mega Mart’s IPO. With two more days to go, analysts expect the subscription numbers to rise substantially.
