Vishal Mega Mart IPO Receives Interest Because of High GMP And Elevated Scope
The most awaited Vishal Mega Mart IPO is today live for public subscription which opens up opportunities to investors, December 11 marks an important chapter for the company and its investors. This is backed by Kedaara Capital, so it is an IPO of Rs. 8000 crores, with the price band ranging at Rs. 74 to 78. The pre-bid facility was available to anchor investors on December 10 which was an ideal warmup setting for the period from December 10 to December 13 when the subscription window opens.
Strong Grey Market Premium And Buyers
Recently the stocks of VMM have also been gaining a significant presence in the gray market with the last recorded GMP of around 30%. This is remarkable considering the stocks are still trading at Rs. 24 over the opening bid with expectations of gaining 30.77% when the bidding ends. Increasing the GMP on the other hand also supports the case of the company’s standing in the market and its finances along with fueling the confidence of the investors in the company.
‘Subscribe’ notes has been with the brokers issued overwhelmingly so far and it can be plausible due to factors that have been cited in the reports for example: VMM being debt-free along with possessing a strong cash balance of 687 crores as of September 2024 and also its strong retail presence in Indian markets.
Why Analysts Are Bullish on Vishal Mega Mart
Analysts believe Vishal Mega Mart is well placed to take advantage of India’s growing disposable income and the preference of consumers for organized retail. The company has 645 stores in 414 cities spread across 30 states and union territories, making it one of the key players in the retailing space. The Vishal Mega Mart mobile app and website take its reach into a burgeoning online shopping business.
Other leading brokerage houses like AUM Capital and Anand Rathi have also praised the company on its financial strength and fair valuation. Speaking about its advantage over unorganized players and potential to be ahead of even organized ones like Spencers, AUM Capital called it a fairly priced IPO that can be bought for the long term.
Expansion and Growth Prospects
In any case, Vishal Mega Mart has garnered much focus on its strategic emphasis in the Tier-II cities, and also on hyper-local delivery services. The firm is going to scale out and open 80-100 new stores in smaller cities or towns of population over 50,000 for enriching the footprint in previously under-penetrated markets. This shall drive a very sustainable growth and strengthen its presence in geographies like Hyderabad and Karnataka, as well.
New Delhi-based brokerage SMIFS views positive growth prospects of the country as seen from the increase in the per capita income. However, they do also point out third party risks and revenue concentration in the three key states that are Uttar Pradesh, Karnataka, and Assam.
Incorporated in 2010, Vishal Mega Mart is a product portfolio offering apparels, general merchandise, and fast-moving consumer goods (FMCG) targeting middle- and lower-middle-income consumers. With revenues of Rs 8,900 crore in FY24 and 11.5 million retail square feet, the company’s leadership in the organized retail space is evident.
Investors need to weigh the firm GMP, solid fundamentals, and a promising growth story against the diverse risks. After all, for long-term investors, an investment in Vishal Mega Mart’s IPO is a perfect opportunity since the country’s retail market is getting on its feet in full regalia.
Share allotment is going to be expected on December 16, while listing is going to happen on December 18. Keep an eye here for more updates and inputs as Vishal Mega Mart is going to debut.
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