Vishal Mega Mart IPO Day 3 GMP and Subscription Status.
The subscription data across several investor categories show that Vishal Mega Mart’s Initial Public Offering (IPO) ended successfully on Day 3 with overwhelming investor demand. Strong investor interest and upbeat market sentiment are demonstrated by the IPO’s overall subscription of 27.28 times the number of shares offered.
Category-wise Breakdown of Subscription
Qualified Institutional Buyers (QIBs)
Number of subscriptions: 80.75
Information: Mutual funds, banks, insurance providers, and other institutional investors are examples of qualified institutional buyers. This enormous 80.75x subscription demonstrates the trust and strong demand from big institutional investors, who are often thought of as knowledgeable market players.
A high QIB subscription ratio frequently indicates the company’s solid foundation and room to grow.
Non-Institutional Investors (NIIs)
14.24 subscriptions
Details: 14.24 times as non-institutional investors applied for many shares also referred to as high net worth individuals or HNIs. This indicates a great deal of interest from affluent investors who are prepared to make larger investments and frequently seek out substantial returns.
Retail Individual Investors (RIIs)
Subscription: 2.31 times
Details: Retail individual investors paid 2.31 times their allotted quota to subscribe, with small investors able to invest up to ₹2 lakh. The subscription statistic shows encouraging engagement from retail investors who see potential gains in the company, while being relatively lower than that of QIBs and NIIs.
Total Subscription: 27.28 times
Due to the IPO’s overall subscription of 27.28 times, buyers purchased more than 27 shares for each share that was offered. Strong demand, investor optimism, and market confidence in Vishal Mega Mart’s growth prospects are all reflected in this huge oversubscription.
Grey Market Premium (GMP)
The price at which the shares are trading on the unofficial grey market prior to listing is indicated by the Grey Market Premium (GMP) for Vishal Mega Mart’s IPO on Day 3. The stock is anticipated to list at a premium over its IPO price if the GMP is positive.
About Vishal Mega Mart IPO.
Vishal Mega Mart is a well-known hypermarket chain in India that was founded in 2001. The company offers a wide range of goods, such as groceries, gadgets, clothing, and necessities for the home. It has successfully built up a robust position inside the retail sector.
Vishal Mega Mart IPO: Range of Products and Brands.
Vishal Mega Mart delivers a range of goods under both its own and other brands. The corporation serves the daily requirements of Indian consumers by offering food, apparel, home furnishings, kitchen equipment, and fast-moving consumer goods.
Vishal Mega Mart IPO: Target Audience and Reach.
Vishal Mega Mart IPO: caters to middle-class and lower-class consumers. across India, it runs 645 outlets across 28 states and 414 cities. They have 6.77 million registered consumers for their delivery service, and their website and mobile app further broaden their reach.
Vishal Mega Mart IPO: Strengths.
The company’s brand portfolio includes a variety of products, such as clothing for women, men, babies, and children. In addition, it sells lifestyle goods, kitchenware, cutlery, crockery, travel gear, and household goods. The portfolio also consists of FMCG staples, non-food goods, and food items.
The company has 626 outlets spread over 33 Tier 1 and 370 Tier 2 cities in India as of June 30, 2024. It closed 26 locations overall and launched 16, 61, 66, and 88 new stores in Q1FY25, FY24, FY23, and FY22, respectively, placing it among the top two offline-first diversified retailers in India for FY24.
Vishal Mega Mart IPO: Weaknesses.
The business solely relies on outside vendors to supply its own-brand products; it does not manufacture any of the goods that are sold in its stores. Its reliance on outside suppliers to fulfill quality requirements and standards poses risks that could have an adverse effect on its operations, cash flows, company, and financial well-being.
The Enforcement Directorate has sent two requests for documents and information pertaining to its inquiry to the company. If something goes wrong, there may be more questions, investigations, lawsuits, or sanctions.
