Vishal Mega Mart IPO: Likely 25% Increase on the Opening Day

Emerging news around the much-awaited IPO of Vishal Mega Mart has made headlines, with expectations of a strong listing day for the immediately after the issue is closed. The IPO was closed with oversubscription close to 28 times, which is a measure of huge anticipation as far as retail and institutional investors were concerned. Analysts predict close to a 25% gain on the very first day of trading, which would rank it highly among the most successful debuts of the year.  

Shares priced in the range of ₹70-78 will currently find a grey market premium of ₹19. This indicates a probable listing at ₹97, which casts a good upside for allotment winners. The IPO was of a size of around ₹8,000 crore with a complete offer-for-sale by the exiting shareholders, which means that the proceeds are not going to benefit the company directly.  

Vishal Mega Mart operates 645 stores of franchises in 414 cities. Most customers fall in the middle- and lower-income strata, which will be the primary thrust of all grocery, apparel, and household products. Therefore, Vishal Mega Mart will now feature as top-of-a-mind recall position before a budget-limited customer.  

The response so far in the IPO indicates the level of confidence that investors have in this company's growth potential, backed by a strong business model and a broad reach in the market. But then again, market experts tell of how listing gains depend on the general market mood and trading activity on the first day of listing.  

Allotment status will be made available to investors via the BSE site or registrar's portal. The shares will be traded from 18th December 2024 in both BSE and NSE.  

With a strong franchise network supporting it, together with its hold in the Indian retail market, the IPO debut of Vishal Mega Mart will be expected to set a bright.