Vishal Mega Mart's grey market premium (GMP) surged a day ahead of its listing, with the IPO allotment finalised last evening. The hypermarket chain’s shares are set to list on NSE and BSE on December 18, following strong investor demand that saw the public issue attract bids worth Rs 1.61 lakh crore. The share allotment was finalised by the official registrar KFin Technologies Ltd.
With the listing just a day away, Vishal Mega Mart shares are witnessing robust activity in the grey market. The stock's GMP has surged to over 25 percent, indicating strong market sentiment around the IPO. The grey market premium serves as an unofficial indicator of how the stock might perform upon listing.
Vishal Mega Mart IPO allotment status: Here's how to check details online | Investors can check their allotment status on the official websites of the registrar KFin Technologies, NSE, and BSE. Read full story for details.
Vishal Mega Mart IPO GMP trend
According to Investorgain and IPO Watch, which track grey market premium trends, the GMP for Vishal Mega Mart shares has climbed to 25 percent. This suggests that the stock could list at a premium of Rs 19-20 over its IPO price. The price band for the IPO was set at Rs 74-78 per share, with allotment done at the upper end of Rs 78.
The current GMP is higher than the 20 percent seen last week but marks a decline from the 35 percent levels observed before the IPO opened for subscription.
The Rs 8,000-crore public issue of Vishal Mega Mart, which operates a pan-India network of 645 stores, witnessed 27 times oversubscription. Investors bid for 2,064 crore shares against 75.67 crore shares on offer.
Vishal Mega Mart’s growth strategy amid competition
Vishal Mega Mart, known for its low-cost offerings like clothes starting at Rs 99 and groceries, competes with retail chains including DMart, and Tata Group's Star Bazaar in India’s $600 billion grocery and supermarket industry.
However, while its rivals face challenges from high inflation and the rise of quick-commerce companies, Vishal Mega Mart is relatively insulated. Analysts cited by Reuters note that 70 percent of its stores are located in smaller cities where quick-commerce remains nascent.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before making any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
