Vishal Mega Mart Makes Bumper Debut In The Stock Market, Begins Trading At 33 Per Cent Premium

The stock of the company got listed at Rs 104, clocking major gains for investors who subscribed to the maiden offer. The m-cap of the retail giant reached Rs 49,266.78 crore during the session

Vishal Mega Mart shares made a solid debut in the stock market on Wednesday. The firm’s shares began trading on the exchanges at a premium of 33.33 per cent against the issue price of Rs 78.

The stock of the company got listed at Rs 104, clocking major gains for investors who subscribed to the maiden offer. The market capitalisation of the retail giant reached Rs 49,266.78 crore during the afternoon session.

As the trading session progressed, the firm’s shares reached a peak of Rs 110.95 on the BSE. The company’s IPO also received massive response from investors and got subscribed over 27 times during the bidding period last week, reported Moneycontrol.

The price range of the listing was set in the range of Rs 74-78 per share. About Rs 2,400 crore were raised from anchor investors such as Government of Singapore, Nomura Funds Ireland Public Ltd, SBI Mutual Fund, ICICI Prudential MF, HDFC MF, and Axis Mutual Fund.

The issue comprised entirely of an offer-for-sale (OFS) by the promoter entity Samayat Services LLP, backed by Kedara Capital.

The company clocked a revenue at Rs 8,912 crore in the 2023-24 fiscal year (FY24), growing at a compounded annual growth rate (CAGR) of 26.3 per cent, in comparison to Rs 5,589 crore logged in the 2021-22 financial year (FY22). The EBITDA of the firm increased to Rs 1,249 crore, while its net profit touched Rs 462 crore in FY24.

The retail chain is known for offering customers lost-cost products such as Rs 99 apparel and affordable groceries. The company operates 645 stores spread across the country and largely caters to middle and lower-middle class consumers.

As of 2:28 PM, the firm's shares traded at Rs 112 apiece on the BSE and Rs 112.08 per share on the NSE.