Vishal Mega Mart IPO shares listing today; should you buy, sell or hold? Check stock outlook

Vishal Mega Mart shares’ grey market premium (GMP) has surged to 25 percent ahead of the listing, indicating robust investor interest in the retailer's recently-concluded IPO.

Vishal Mega Mart shares’ much-awaited stock exchange listing is set to take place shortly today following a bumper IPO, with investors eyeing robust listing gains and booking profit. The hypermarket chain’s Rs 8,000-crore public issue received an overwhelming subscription of 27.28 times during the three-day bidding last week.

Vishal Mega Mart shares’ grey market premium (GMP) has surged to 25 percent ahead of the listing, indicating robust investor interest in the Gurugram-based retail major's initial public offering. This has prompted a few analysts to recommend that IPO investors book profits if listing gains exceed 25 percent.

Vishal Mega Mart operates retail shops targeted at middle and lower-middle-class consumers in India, offering a broad range of products through its portfolio of private labels and third-party brands. The company operates 645 stores across the country and has shown consistent revenue and profitability growth.

Vishal Mega Mart IPO allotment out, GMP soars ahead of listing; did you get shares? Check status online

Conservative investors should book profits if Vishal Mega Mart shares list with 25 percent or more gains above the IPO price, said Prashanth Tapse, Senior Vice President of Research at Mehta Equities. "However, long-term investors can consider holding the stock despite short-term volatility and market risks," he said.

Those who missed out on Vishal Mega Mart IPO allotment can look to accumulate shares on dips after the listing, as profit booking is likely, said Tapse. He expects the stock to deliver a decent listing gain in the range of 20-25 percent over the issue price.

Similarly, Shivani Nyati, Head of Wealth at Swastika Investmart said that the current GMP of 25 percent points to a respectable listing gain.

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On the other hand, Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi, recommended a long-term view on the stock. "At the upper price band, the company is valued at a price-to-earnings (P/E) ratio of 67.83x and an EV/EBITDA of 28.1x, with a post-issue market cap of Rs 35,168 crore and a return on net worth of 8.18 per cent," he said.

Akriti Mehrotra, Research Analyst at StoxBox, said that Vishal Mega Mart remains an attractive investment opportunity, advising investors allotted shares to hold their positions for medium to long-term gains.

"The company has delivered strong financial performance, with revenue growing at a CAGR of 26.3 per cent to Rs 8,911.95 crore in FY24 from Rs 5,588.52 crore in FY22. EBITDA has risen to Rs 1,248.6 crore, while profit stood at Rs 461.94 crore in FY24," said Mehrotra. Vishal Mega Mart stock is likely to make a strong debut, potentially with a 24 percent premium over the IPO allotment price, she added.

Vishal Mega Mart raised Rs 8,000-crore, including Rs 2,400 crore from anchor investors in the IPO, which was entirely an offer for sale of shares by the promoter entities. The IPO had a price band of Rs 74-78 per share.

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