Shares of Vishal Mega Mart surged 41 per cent on Wednesday, as the budget retailer made its debut on the stock exchanges.
This gave Vishal Mega Mart, which came out with a ₹8,000 crore initial public offering (IPO) last week, a valuation of $5.8 billion (approx. ₹49,256 crore), Reuters news agency reported.
The stock listed at ₹110 on the Bombay Stock Exchange (BSE), a 41 per cent increase over the company’s ₹78 issue price. Later, the stock was at ₹110.95, up 42 per cent.
On the other hand, the Vishal Mega Mart stock was listed at ₹104 at the National Stock Exchange (NSE), a 33 per cent jump from the issue price.
The Vishal Mega Mart IPO, which was available for bidding from December 11-13, received 27.28 times subscription on the closing day.
The public issue of the Gurugram-based supermart major was entirely an offer-for-sale (OFS) of shares by promoter Kedaara Capital-led Samayat Services LLP, Samayat Services LLP, with no fresh issue of equity shares.
The product range of Vishal Mega Mart includes both in-house and third-party brands, which cover three categories: apparel, general merchandise, and fast-moving consumer goods.
As of June 30, there were as many as 626 Vishal Mega Mart stores across the country, along with a mobile app and website.
According to Reuters, 70 per cent of these stores are in smaller cities, where quick commerce was still in a nascent stage.
“While metros are seeing a decline in consumption due to inflation, tier 2 and tier 3 cities are seeing a rise in demand. Vishal, with most of its stores in smaller cities, stands to benefit from this,” Narendra Solanki of Anand Rathi Financial Services told the agency.
(includes PTI inputs)