Tier-2 cities focused retailer Vishal Mega Mart listed at a 33.3 per cent premium to its issue price of ₹78 and ended 43 per cent higher on the NSE at ₹111.88, with a market cap of over ₹50,000 crore.
The issue had been subscribed over 27 times and the institutional portion was subscribed over 80 times. The issues was entirely through an offer for sale by the holding company Samyat Services, which sold 23 per cent of its stake.
The opening price of ₹104 was also the lowest of the day and it went to an intra-day high of ₹114.40, the total traded volume being nearly 73 crore.
The combined realised and unrealised gains for Kedaara Capital and Partners Group were around $5 billion due to the listing.
The retailer that sells apparel, general merchandise and FMCG products is aimed at the mid-income and low-income customers who are looking for value and bargains. Half of its revenues comes from the apparel business.
Vishal Mega Mart derives the bulk of its revenues from its own brands and its vendors are all topclass manufacturers such as biscuits by McVitie’s, noodles by Nissin, savoury snacks by Bikanerwala and so on.
While conscious of the aspirational aspect of its customers the retailer has kept its products affordable for its target customers as well.
